As
Filed with the United States Securities and Exchange Commission on April
27, 2023.
1933
Act Registration No. 1933 Act Registration No. 002-57526
1940 Act Registration
No. 1940 Act Registration No. 811-02699
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
N-1A
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REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933 |
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Pre-Effective
Amendment No. |
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Post-Effective
Amendment No. 167 |
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and/or
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REGISTRATION
STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 |
☐
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Amendment
No. 163 |
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AIM
GROWTH SERIES (INVESCO GROWTH SERIES)
(Exact
Name of Registrant as Specified in Charter)
11
Greenway Plaza, Suite 1000, Houston, TX 77046-1173
(Address
of Principal Executive Office)
Registrant’s
Telephone Number, including Area Code: (713) 626-1919
Melanie
Ringold, Esquire
11 Greenway Plaza, Suite 1000, Houston, TX 77046
11 Greenway Plaza, Suite 1000, Houston, TX 77046
(Name
and Address of Agent for Service)
Copy
to:
|
Taylor
V. Edwards, Esquire
Invesco
Advisers, Inc.
225
Liberty Street, 15th FL
New
York, NY 10281-1087 |
Matthew
R. DiClemente, Esquire
Mena
M. Larmour, Esquire
Stradley
Ronon Stevens & Young, LLP
2005
Market Street, Suite 2600
Philadelphia,
Pennsylvania 19103-7018 |
Approximate
Date of Proposed Public Offering: As soon as practicable after the effective date of this Amendment.
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It
is proposed that this filing will become effective (check appropriate box) | |
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immediately
upon filing pursuant to paragraph (b) |
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_X_
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on
April 28, 2023
pursuant to paragraph (b) |
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60
days after filing pursuant to paragraph (a) |
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on
(date) pursuant to paragraph (a) |
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75
days after filing pursuant to paragraph (a)(2) |
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on
(date) pursuant to paragraph (a)(2) of rule 485 |
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If
appropriate, check the following box: | |
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This
post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
SUPPLEMENT
DATED APRIL 28, 2023 TO THE CURRENT
SUMMARY AND STATUTORY PROSPECTUSES FOR:
SUMMARY AND STATUTORY PROSPECTUSES FOR:
Invesco
International Diversified Fund
(the
“Fund”)
This
supplement amends the Summary and Statutory Prospectuses of the above referenced Fund and is in addition to any other supplement(s),
unless otherwise specified. Capitalized terms used but not defined herein have the meanings assigned to them in the Summary and Statutory
Prospectuses. You should read this supplement
in
conjunction with the Summary and Statutory Prospectuses and retain it for future reference.
Invesco
International Equity Fund (the “Current Underlying Fund”) is one of the Underlying Funds listed in the Fund’s prospectuses
as an investment option. The Board of Trustees of the Current
Underlying Fund recently approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Current
Underlying Fund would transfer all or substantially all its assets and liabilities to Invesco EQV International Equity Fund (the “New
Underlying Fund”) in exchange for shares of the New Underlying Fund (the “Reorganization”). The Agreement will be submitted
to shareholders of the Current Underlying Fund for their consideration and approval at a shareholder meeting to be held on or about July
12, 2023. If approved, the Reorganization will close shortly thereafter and upon such closing the Fund’s investment allocation to
the Current Underlying Fund will be reallocated to the New Underlying Fund. If the Reorganization is not approved, the Fund may proceed
to allocate to the New Underlying Fund consistent with the terms of the prospectus.
The
following information is added to the list of Underlying Funds under the heading “Principal
Investment Strategies of the Fund” in the Summary and
Statutory Prospectuses:
•
Invesco
EQV International Equity Fund
The
following information is added to the list of Underlying Fund descriptions under the heading “Investment
Objective(s), Strategies, Risks and Portfolio Holdings - Objective(s) and Strategies”
in the Statutory Prospectus:
•
Invesco
EQV International Equity Fund invests mainly in common and preferred stocks of foreign issuers that the portfolio managers believe have
potential for earnings or revenue growth.
The
following information is added under the heading “Investment
Objective(s), Strategies, Risks and Portfolio Holdings – More Information About the Underlying Funds”
in the Statutory Prospectus:
Invesco
EQV International Equity Fund
The
Fund invests, under normal circumstances, at least 80% of its net assets, plus borrowings for investment purposes, in equity
securities, and in derivatives and other instruments that have economic characteristics similar to such securities. The Fund invests primarily
in equity securities (including depositary receipts) of foreign issuers. The principal types of equity securities in which the Fund invests
are common and preferred stock. The Fund’s common stock investments also include China A-shares (shares of companies based in mainland
China that trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange). Under normal circumstances, the Fund will provide exposure
to investments that are economically tied to at least three different countries outside of the U.S. The Fund may also invest up to 1.25
times the amount of the exposure to emerging markets countries in the MSCI ACWI ex USA ® Index. Emerging market countries are those
that are generally in the early stages of their industrial cycles. The Fund invests primarily in securities of issuers that are considered
by the Fund’s portfolio managers to have potential for earnings or revenue growth. The Fund invests primarily in the securities
of large-capitalization issuers and may invest a significant amount of its net assets in the securities of mid-capitalization issuers.
O-IDIV-SUMSTAT-SUP
1
Prospectus
April
28,
2023
Class:
A (OAAAX), C (OAACX),
R (OAANX), Y (OAAYX),
R5 (PAAJX), R6 (PAAQX)
Invesco
Active Allocation Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission
(CFTC) have not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary
is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
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Back
Cover |
Invesco
Active Allocation Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is to seek total return.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
A contingent deferred sales charge may
apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
2
“Other Expenses” have been
restated to reflect current fees.
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 20%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual funds advised by Invesco Advisers, Inc. (Invesco
or the Adviser) and exchange-traded funds (ETFs) and other pooled investment vehicles advised by Invesco Capital Management LLC (Invesco
Capital) or mutual funds, ETFs and other pooled investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco and
Invesco Capital are affiliates of each other as they are both indirect wholly-owned subsidiaries of Invesco Ltd.
The
Fund generally categorizes each underlying fund as an equity, fixed-income,
or alternative fund based on its investment profile. The Fund typically allocates its assets among underlying funds, and within a pre-determined
percentage range for its assets in equity funds, as determined by the Adviser in accordance with its outlook for the economy, the financial
markets and the relative market valuations of the underlying funds. Under normal market conditions, the Adviser selects underlying funds
based on its determination that they could provide total return for the Fund.
The
Fund generally invests between 70% and 85% of its assets in equity
funds. Such funds invest in equity securities of domestic and foreign companies, including small, medium and large market capitalization
companies, and growth and value stocks. Equity securities include common stock, preferred stock, rights and warrants, and securities convertible
into common stock. Foreign equities are securities of issuers outside of the United States, including issuers in emerging or developing
markets, i.e., those that are generally in the early stages of their industrial cycles. Underlying funds investing primarily in real estate
securities, listed infrastructure securities, and master limited partnerships (MLPs) will be deemed to be “equity funds” for
purposes of the Fund’s allocation strategy.
The
Fund generally invests the remainder of its assets in a flexible combination
of fixed-income and alternative funds. Fixed-income funds generally invest in fixed income instruments such as investment-grade debt securities,
below-investment-grade high yield securities (or “junk” bonds), government and government-sponsored securities, corporate
bonds, securitized products, and inflation-protected debt securities. Alternative funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment strategies, including primarily through the use of derivatives,
that aim to offer diversification beyond traditional equity and fixed-income securities and may seek to take long and short positions
to manage exposure to certain asset classes. The Fund is not required to invest its assets in any specified percentages of fixed-income
or alternative funds. The Fund does not limit its investment in underlying funds that invest primarily in foreign securities.
The
Fund’s investment in underlying funds is subject to any limitations imposed
by the Investment Company Act of 1940 or any rules thereunder.
1 Invesco
Active Allocation Fund
Under
normal market conditions, the Fund also invests a portion of its assets
based on a “tactical allocation” strategy. As part of the tactical allocation strategy, the Fund can adjust the allocation
of its assets to underlying funds to take advantage of temporary market conditions that may present opportunities (which can cause the
Fund’s investments in equity funds, fixed-income and alternative funds to exceed or be lower than the general percentages referenced
above by approximately 5%). Also, as part of the tactical allocation strategy, the Fund may invest directly in certain securities in which
underlying funds invest, and may use derivatives, including to seek income or capital gain, hedge against the risks of other investments,
equitize its cash position and manage the duration of its portfolio. Options, futures, forward contracts and swaps are some of the types
of derivatives the Fund can use.
The
Fund may temporarily exceed its percentage range for its assets in equity
funds for short periods and may alter the percentage range when it deems appropriate. The Adviser will monitor the markets and allocate
assets among the underlying funds based on changing market or economic conditions and investment opportunities. The Adviser monitors the
underlying fund selections and periodically rebalances the Fund’s investments to bring them back within their asset allocation target
ranges. In response to changing market or economic conditions, the Adviser may change any or all of the underlying funds managed by Invesco
and/or its affiliates, including using funds that may be created in the future, or change the Fund’s asset allocation target ranges
at any time, in each case without prior approval from or notice to shareholders.
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money market mutual funds in the Invesco family of funds. This may also include
shares of funds that provide exposure to inflation protected debt securities and short-term investment grade debt securities. This will
also generally occur at times when there is an inability to immediately invest funds received from purchases of Fund shares or from redemptions
of other investments or to maintain liquidity.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. Because the Fund is a fund of funds, the Fund is subject to the risks associated with the underlying funds in which
it invests. The principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism, economic crisis or adverse investor sentiment
generally. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well,
there can be no assurance that specific investments held by an underlying fund will rise in value.
Fund
of Funds Risk. The Fund’s performance depends on that of
the underlying funds in which it invests. Accordingly, the risks associated with an investment in the Fund include the risks associated
with investments in the underlying funds. The Fund will indirectly pay a proportional share of the fees and expenses of the underlying
funds in which it invests. There are risks that the Fund will vary from its target weightings (if any) in the
underlying
funds, that the underlying funds will not achieve their investment objectives, that the underlying funds’ performance may be lower
than their represented asset classes, and that the Fund may withdraw its investments in an underlying fund at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) an exchange-traded fund’s shares may trade above or below its net asset value;
(2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading an exchange-traded
fund’s shares may be halted by the listing exchange; (4) a passively-managed exchange-traded fund may not track the performance
of the reference asset; and (5) a passively-managed exchange-traded fund may hold troubled securities. Investment in exchange-traded funds
may involve duplication of management fees and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate
share of any expenses paid by the exchange-traded funds in which it invests. Further, certain exchange-traded funds in which the Fund
or an underlying fund may invest are leveraged, which may result in economic leverage, permitting the Fund or an underlying fund to gain
exposure that is greater than would be the case in an unlevered instrument, and potentially resulting in greater volatility.
Allocation
Risk.
The Fund’s investment performance depends, in part, on how its assets are allocated among the underlying funds or asset classes.
The Adviser’s evaluations and assumptions regarding the asset classes or the underlying funds in which the Fund invests may be incorrect,
causing the Fund to be invested (or not invested) in one or more asset classes or underlying funds at an inopportune time, which could
negatively affect the Fund’s performance.
Investing
in Stocks Risk.
The value of an underlying fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant
short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have
unexpected negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets
may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with
2 Invesco
Active Allocation Fund
investment
advisers that actively manage their portfolio assets to take advantage of market opportunities.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many
other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Rights
and Warrants Risk.
Warrants may be significantly less valuable or worthless on their expiration date and may also be postponed or terminated early, resulting
in a partial or total loss. Rights are similar to warrants, but normally have a short duration and are distributed directly by the issuer
to its shareholders. Rights and warrants have no voting rights, receive no dividends and have no rights with respect to the assets of
the issuer. Warrants and rights are highly volatile and, therefore, more susceptible to sharp declines in value than the underlying security
might be. The market for rights or warrants may be very limited and it may be difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk. The
market values of convertible securities are affected by market interest rates, the risk of actual issuer default on interest or principal
payments and the value of the underlying common stock into which the convertible security may be converted. Additionally, a convertible
security is subject to the same types of market and issuer risks that apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events,
and, as a result, are subject to an increased risk of loss. Convertible securities may be rated below investment grade and therefore considered
to have more speculative characteristics and greater susceptibility to default or decline in market value than investment grade securities.
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations
and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many
instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially
less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller
companies may be subject to wider price fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable
price when it wants to sell them. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize
a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
Foreign
Securities Risk.
An underlying fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation
policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk
of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which an underlying fund could lose its
entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign
companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing
and accounting controls, and may therefore be more susceptible to fraud or corruption. There may be less
public
information available about foreign companies than U.S. companies, making it difficult to evaluate those foreign companies. Unless an
underlying fund has hedged its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency
rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which an
underlying fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short
periods of time. Currency hedging strategies, if used, are not always successful.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede an underlying fund’s
ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change
quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization
of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country,
protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Growth
Investing Risk.
If a growth company’s earnings or stock price fails to increase as anticipated, or if its business plans do not produce the expected
results, the value of its securities may decline sharply. Growth companies may be newer or smaller companies that may experience greater
stock price fluctuations and risks of loss than larger, more established companies. Newer growth companies tend to retain a large part
of their earnings for research, development or investments in capital assets. Therefore, they may not pay any dividends for some time.
Growth investing has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth
investing is out of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price
and the securities of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may
also be more volatile than other securities because of investor speculation.
Value
Investing Risk. Value investing entails the risk that if the market
does not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value approach
could also result in fewer investments that increase rapidly during times of market gains and could cause an underlying fund to underperform
funds that use a growth or non-value approach to investing. Value investing has gone in and out of favor during past market cycles and
when value investing is out of favor or when markets are unstable, the securities of value
companies may underperform the securities of growth companies
or the overall stock market.
Geographic
Focus Risk.
An underlying fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single
country or a limited number of countries. Adverse
3 Invesco
Active Allocation Fund
economic,
political or social conditions in those countries may therefore have a significant negative impact on an underlying fund’s investment
performance.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries.
Momentum
Investing Risk.
In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style
of investing emphasizes investing in securities that have had better recent performance compared to other securities, on the theory that
these securities will continue to increase in value. Momentum investing is subject to the risk that the securities may be more volatile
than the market as a whole. High momentum may also be a sign that the securities’ prices have peaked, and therefore the returns
on securities that previously have exhibited price momentum may be less than returns on other styles of investing. Momentum can turn quickly,
and stocks that previously have exhibited high momentum may not experience continued positive momentum. An underlying fund may experience
significant losses if momentum stops, reverses or otherwise behaves differently than predicted. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment performance of an underlying fund may suffer.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. An underlying
fund’s adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune
time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may
decline.
Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase
an underlying fund’s portfolio turnover rate and transaction costs.
High
Yield Debt Securities (Junk Bond) Risk.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject an underlying fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities.
Prices of high yield debt securities tend to be very volatile.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received
earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in an underlying fund reinvesting
these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage- and asset-backed securities also
are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing
the price of the mortgage- and asset-backed securities and an underlying fund’s share price to fall. An unexpectedly high rate of
defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities and will result in losses
to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of
securities and an underlying fund may be unable to sell these securities at the time or price it desires. During periods of market stress
or high redemptions, an underlying fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid
privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods of market stress. Privately
issued mortgage-related securities are not subject to the same underwriting requirements as those with government or government-sponsored
entity guarantees and, therefore, mortgage loans underlying privately issued mortgage-related securities may have less favorable collateral,
credit risk, liquidity risk or other underwriting characteristics, and wider variances in interest rate, term, size, purpose and borrower
characteristics. An underlying fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with
weakened credit histories or with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage
pools that include subprime mortgages.
Municipal
Securities Risk. The
risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the security.
Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a
decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate
the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status
of municipal securities.
Senior
Loans and Other Loans Risk. Risks associated with an investment
in Senior Loans include credit risk, interest rate risk, liquidity risk, valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair an underlying fund’s ability to sell Senior
Loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments.
Extended trade
4 Invesco
Active Allocation Fund
settlement
periods may result in cash not being immediately available to an underlying fund. As a result, an underlying fund may have to sell other
investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding Senior Loans is also directly
tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans can be affected by and sensitive to changes
in government regulation and to economic downturns in the United States and abroad. Senior loans are also subject to the risk that a court
could subordinate a senior loan or take other action detrimental to the holders of senior loans. Loans are subject to the risk that the
value of the collateral, if any, securing a loan may decline, be insufficient to meet the obligations of the borrower, or be difficult
to liquidate. Loan investments are often issued in connection with highly leveraged transactions which are subject to greater credit risks
than other investments including a greater possibility that the borrower may default or enter bankruptcy. These risks could cause an underlying
fund to lose income or principal on a particular investment, which in turn could affect an underlying fund’s returns.
Commodity-Linked
Notes Risk.
In addition to risks associated with the underlying commodities, investments in commodity-linked notes may be subject to additional risks,
such as non-payment of interest and loss of principal, counterparty risk, lack of a secondary market and risk of greater volatility than
traditional equity and debt securities. The value of the commodity-linked notes an underlying fund buys may fluctuate significantly because
the values of the underlying investments to which they are linked are themselves volatile. Additionally, certain commodity-linked notes
employ “economic” leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease
of the underlying commodity, commodity index, or other economic variable. Such economic leverage will increase the volatility of the value
of these commodity-linked notes and an underlying fund to the extent it invests in such notes.
Foreign
Government Debt Risk. Investments
in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those
relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment
of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and an underlying
fund may have limited recourse in the event of a default against the defaulting government. Without the approval of debt holders, some
governmental debtors have in the past been able to reschedule or restructure their debt payments or declare moratoria on payments.
REIT
Risk/Real Estate Risk.
An underlying fund concentrates its investments in the securities of real estate and real estate related companies. Investments in
real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that affect
property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap companies, may be
more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt obligations, held
by an underlying fund, an underlying fund may acquire real estate directly, which involves additional risks such as environmental liabilities;
difficulty in valuing and selling the real estate; and economic or regulatory changes.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. Regulators and financial industry working groups
in several jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to replace
LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the Secured
Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other interbank
offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted.
Consequently,
the publication of most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published
until June 2023 to allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions
to cease entering into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which underlying fund invests that utilize ARRs will be
similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
Additionally, although regulators have generally prohibited banking institutions from entering into new contracts that reference those
USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and
implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy”
USD LIBOR instruments held by an underlying fund could result in losses to an underlying fund.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of an underlying
fund’s securities become illiquid, an underlying fund may not be able to timely pay redemption proceeds and may need to sell securities
at significantly reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and an underlying fund may be unable to dispose of the securities at a desirable time or price.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities and such securities may be difficult to value and may have
significant volatility.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay an underlying fund or the Fund
the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment
up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of
the underlying asset could result in an underlying fund or the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset, which may make the underlying fund’s or the Fund’s returns
more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the
underlying fund or the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be
more acute under adverse market conditions, during which the underlying fund or the Fund may be most in need of liquidating its derivative
positions. Derivatives may also be harder to value, less tax efficient and
5 Invesco
Active Allocation Fund
subject
to changing government regulation that could impact the underlying fund’s or the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment strategies will yield uncorrelated performance under all market conditions. In addition, the particular mix of
alternative investments in an underlying fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to
the risk that its alternative investments may undergo a correlation shift, resulting in returns that are correlated with the broader market
and/or with an underlying fund’s other alternative investments.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact an underlying
fund’s operations, universe of potential investment options, and return potential.
Active
Trading Risk.
Active trading of an underlying fund’s portfolio securities may result in added expenses, a lower return and increased tax liability.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. Because the investment process of the Fund relies heavily on its
asset allocation process, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on the Fund’s net asset value. Similarly, because the investment processes of certain underlying funds rely heavily on their
security selection processes, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on certain underlying funds’ net asset values. Additionally, legislative, regulatory, or tax developments may adversely affect
management of the Fund and underlying funds and, therefore, their abilities to achieve their investment objectives.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The Fund has adopted the performance of the
Oppenheimer Portfolio Series: Active Allocation Fund (the predecessor fund) as the result of a reorganization consummated after the close
of business on May 24, 2019 (the “Reorganization”). Prior to the Reorganization, the
Fund
had not yet commenced operations. The bar
chart shows changes in the performance of the predecessor fund and the Fund from year to year as of December 31. The performance table
compares the predecessor fund’s and the Fund’s performance to that of a broad measure of market performance and additional
indices with characteristics relevant to the Fund.
The
Fund’s (and the predecessor fund’s) past performance (before and after
taxes) is not necessarily an indication of how the Fund will perform in the future. The returns shown for periods ending
on or prior to May 24, 2019, are those of the Class A, Class C, Class R and Class Y shares of the predecessor fund. Class A, Class C,
Class R and Class Y shares of the predecessor fund were reorganized into Class A, Class C, Class R and Class Y shares, respectively, of
the Fund after the close of business on May 24, 2019. Class A, Class C, Class R and Class Y shares’ returns of the Fund will be
different from the returns of the predecessor fund as they have different expenses. Performance for Class A shares has been restated to
reflect the Fund’s applicable sales charge.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
17.76%
|
|
Worst
Quarter |
March
31, 2020 |
-21.28%
|
6 Invesco
Active Allocation Fund
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
4/5/2005
|
-23.77%
|
1.80%
|
5.50%
|
|
Return
After Taxes on Distributions |
|
-24.62
|
-0.08
|
4.35
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
-13.54
|
1.20
|
4.25
|
|
| ||||
|
Class
C |
4/5/2005
|
-20.70
|
2.18
|
5.46
|
|
| ||||
|
Class
R |
4/5/2005
|
-19.56
|
2.69
|
5.83
|
|
| ||||
|
Class
Y |
4/5/2005
|
-19.15
|
3.21
|
6.36
|
|
| ||||
|
Class
R5 |
5/24/2019
|
-19.08
|
3.161
|
6.211
|
|
| ||||
|
Class
R6 |
5/24/2019
|
-19.14
|
3.171
|
6.211
|
|
| ||||
|
Custom
Invesco Active Allocation Index (80% MSCI
ACWI
(Net) (reflects reinvested dividends net of
withholding
taxes, but reflects no deduction for
fees,
expenses or other taxes) and 20%
Bloomberg
Global Aggregate USD Hedged Index
(reflects
no deduction for fees, expenses or taxes)) |
|
-16.75
|
4.50
|
6.88
|
|
| ||||
|
Bloomberg
Global Aggregate USD Hedged Index
(reflects
no deduction for fees, expenses or taxes) |
|
-11.22
|
0.36
|
1.70
|
|
| ||||
|
MSCI
ACWI (Net) (reflects reinvested dividends net
of
withholding taxes, but reflects no deduction for
fees,
expenses or other taxes) |
|
-18.36
|
5.23
|
7.98
|
|
| ||||
1
Performance shown prior to the inception
date is that of the predecessor fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although
invested in the same portfolio of securities, Class R5 and R6 shares' returns of the Fund will be different from Class A shares' returns
of the predecessor fund as they have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Jeffrey
Bennett, CFA |
Portfolio
Manager |
2019
(predecessor fund 2018) |
|
| ||
|
Alessio
de Longis, CFA |
Portfolio
Manager |
2020
|
|
| ||
|
Scott
Hixon, CFA |
Portfolio
Manager |
2023
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek total return. The Fund’s investment objective may be changed by the Board of Trustees
(the Board) without shareholder approval.
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual
funds advised by Invesco and ETFs and other pooled investment vehicles advised by Invesco Capital or mutual funds, ETFs and other pooled
investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco and Invesco Capital are affiliates of each other
as they are both indirect wholly-owned subsidiaries of Invesco Ltd.
The
Fund generally categorizes each underlying fund as an equity, fixed-income,
or alternative fund based on its investment profile. The Fund typically allocates its assets among underlying funds, and within a pre-determined
percentage range for its assets in equity funds, as determined by the Adviser in accordance with its outlook for the economy, the financial
markets and the relative market valuations of the underlying funds. Under normal market conditions, the Adviser selects underlying funds
based on its determination that they could provide total return for the Fund.
The
Fund generally invests between 70% and 85% of its assets in equity
funds. Such funds invest in equity securities of domestic and foreign companies, including small, medium and large market capitalization
7 Invesco
Active Allocation Fund
companies,
and growth and value stocks. Equity securities include common stock, preferred stock, rights and warrants, and securities convertible
into common stock. Foreign equities are securities of issuers outside of the United States, including issuers in emerging or developing
markets, i.e., those that are generally in the early stages of their industrial cycles. Underlying funds investing primarily in real estate
securities, listed infrastructure securities, and master limited partnerships (MLPs) will be deemed to be “equity funds” for
purposes of the Fund’s allocation strategy.
The
Fund generally invests the remainder of its assets in a flexible combination
of fixed-income and alternative funds. Fixed-income funds generally invest in fixed income instruments such as investment-grade debt securities,
below-investment-grade high yield securities (or “junk” bonds), government and government-sponsored securities, corporate
bonds, securitized products, and inflation-protected debt securities. Alternative funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment strategies, including primarily through the use of derivatives,
that aim to offer diversification beyond traditional equity and fixed-income securities and may seek to take long and short positions
to manage exposure to certain asset classes. The Fund is not required to invest its assets in any specified percentages of fixed-income
or alternative funds. The Fund does not limit its investment in underlying funds that invest primarily in foreign securities.
The
Fund’s investment in underlying funds is subject to any limitations imposed
by the Investment Company Act of 1940 and any rules thereunder.
Under
normal market conditions, the Fund also invests a portion of its assets
based on a “tactical allocation” strategy. As part of the tactical allocation strategy, the Fund can adjust the allocation
of its assets to underlying funds to take advantage of temporary market conditions that may present opportunities (which can cause the
Fund’s investments in equity funds, fixed-income and alternative funds to exceed or be lower than the general percentages referenced
above by approximately 5%). Also, as part of the tactical allocation strategy, the Fund may invest directly in certain securities in which
underlying funds invest, and may use derivatives, including to seek income or capital gain, hedge against the risks of other investments,
equitize its cash position and manage the duration of its portfolio.
With
respect to derivatives, references to the “underlying funds” also include
the Fund and references to the “Fund” also include the underlying funds. The underlying funds can invest in a number of different
types of “derivatives” instruments. A derivative is an instrument whose value depends on (or is derived from) the value of
an underlying security, asset, interest rate, index or currency. Derivatives may allow an underlying fund to increase or decrease its
exposure to certain markets or risks. Some underlying funds may use derivatives to seek income or capital gain or to hedge against the
risks of other investments. Options, futures, forward contracts and swaps are some of the types of derivatives the underlying funds can
use. The underlying funds may also use other types of derivatives that are consistent with their investment strategies or for hedging
purposes. The underlying funds are not required to use derivatives in seeking their investment objectives or for hedging and might not
do so.
The
Fund may temporarily exceed its percentage range for its assets in equity
funds for short periods and may alter the percentage range when it deems appropriate. The Adviser will monitor the markets and allocate
assets among the underlying funds based on changing market or economic conditions and investment opportunities. The Adviser monitors the
underlying fund selections and periodically rebalances the Fund’s investments to bring them back within their asset allocation target
ranges. In response to changing market or economic conditions, the Adviser may change any or all of the underlying funds managed by Invesco
and/or its affiliates, including using funds that may be created in the future, or change the Fund’s asset allocation target ranges
at any time, in each case without prior approval from or notice to shareholders.
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money
market
mutual funds in the Invesco family of funds. This may also include shares of funds that provide exposure to inflation protected debt securities
and short-term investment grade debt securities. This will also generally occur at times when there is an inability to immediately invest
funds received from purchases of Fund shares or from redemptions of other investments or to maintain liquidity.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
the Fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector,
such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters, widespread
disease or other public health issues, war, military conflict, acts of terrorism, economic crisis or other events may have a significant
impact on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances
may also impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in
the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific
investments held by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO) member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine
(and the potential for further sanctions in response to Russia’s continued military activity) may escalate. These and other corresponding
events, have had, and could continue to have, severe negative effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall uncertainty. The negative impacts may be particularly acute in certain sectors including,
but not limited to, energy and financials. Russia may take additional countermeasures or retaliatory actions (including cyberattacks),
which could exacerbate negative consequences on global financial markets. The duration of the conflict and corresponding sanctions and
related events cannot be predicted. The foregoing may result in a negative impact on Fund performance and the value of an investment in
the Fund, even beyond any direct investment exposure the Fund may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility,
8 Invesco
Active Allocation Fund
liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Fund
of Funds Risk.
The Fund’s performance depends on that of the underlying funds in which it invests. Accordingly, the risks associated with an investment
in the Fund include the risks associated with investments in the underlying funds. The Fund will indirectly pay a proportional share of
the fees and expenses of the underlying funds in which it invests. There is a risk that the Fund will vary from its target weightings
(if any) in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will
achieve their investment objectives, and their performance may be lower than their represented asset classes. Underlying Funds that are
not affiliated with the Fund may change their portfolio managers, investment objectives, investment strategies, policies or practices
without the approval of the Fund, which may cause the Fund to withdraw its investments therein at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) the market price of an exchange-traded fund’s shares may trade above or below
its net asset value; (2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading
an exchange-traded fund’s shares may be halted if the listing exchange’s officials deem such action appropriate; (4) a passively-managed
exchange-traded fund may not accurately track the performance of the reference asset; and (5) a passively-managed exchange-traded fund
would not necessarily sell a security because the issuer of the security was in financial trouble unless the security is removed from
the index that the exchange-traded fund seeks to track. Investment in exchange-traded funds may involve duplication of management fees
and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded
funds in which it invests. Further, certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged. Investing
in leveraged exchange-traded funds may result in economic leverage, which does not result in the possibility of the Fund or an underlying
fund incurring obligations beyond its investments, but nonetheless permits the Fund or an underlying fund to gain exposure that is greater
than would be the case in an unlevered instrument, which can result in greater volatility.
Allocation
Risk. The Fund’s investment performance depends, in part,
on how its assets are allocated among the underlying funds or asset classes. The Adviser’s evaluations and assumptions regarding
the asset classes or the underlying funds in which the Fund invests may be incorrect, causing the Fund to be invested (or not invested)
in one or more asset classes or underlying funds at an inopportune time. The Adviser’s allocation of the Fund’s assets among
asset classes and underlying funds may therefore not produce the desired results and could cause the Fund to perform poorly or underperform
the Fund’s benchmark and other available funds.
◾
Affiliated
Portfolio Risk. In managing the Fund, the Adviser will have authority
to select and substitute underlying funds. The Adviser may be subject to potential conflicts of interest in selecting underlying funds
because the fees paid to the Adviser or its affiliates by some underlying funds for advisory services are higher than the fees paid
by
other underlying funds. In addition, the Fund's portfolio managers may also serve as portfolio managers of the underlying funds.
However, the Adviser monitors the investment process to seek to
identify, address and resolve any potential issues and has adopted certain compliance procedures which are designed to address these types
of conflicts.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of an underlying fund’s portfolio may be affected by changes in
the stock markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets
may experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-sized companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the issuer in
a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital
structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred
securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s
financial condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
9 Invesco
Active Allocation Fund
Rights
and Warrants Risk.
Rights and warrants may be purchased directly or acquired as part of other securities. Warrants are options to purchase equity securities
at a specific price during a specific period of time. The price of a warrant does not necessarily move parallel to, and is generally more
volatile than, the price of the underlying security. Warrants may be significantly less valuable or worthless on their expiration date
and may also be postponed or terminated early, resulting in a partial or total loss. Rights are similar to warrants, but normally have
a short duration and are distributed directly by the issuer to its shareholders. Rights and warrants have no voting rights, receive no
dividends and have no rights with respect to the assets of the issuer. Warrants and rights are highly volatile and, therefore, more susceptible
to sharp declines in value than the underlying security might be. The market for rights or warrants may be very limited and it may be
difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk.
The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the
value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be
able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or
the market’s perception of the issuer’s creditworthiness. Convertible securities can be converted into or exchanged for a
set amount of common stock of an issuer within a particular period of time at a specified price or according to a price formula. Convertible
debt securities pay interest and convertible preferred stocks pay dividends until they mature or are converted, exchanged or redeemed.
Some convertible debt securities may be considered “equity equivalents” because of the feature that makes them convertible
into common stock. Since a convertible security derives a portion of its value from the common stock into which it may be converted, a
convertible security is also subject to the same types of market and issuer risks that
apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events.
These convertible securities are subject to an increased risk of loss and are generally subordinate in rank to other debt obligations
of the issuer. Convertible securities may be rated below investment grade and therefore considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable price when it wants to sell them.
In addition, investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities
(this is sometimes referred to as “price arbitrage”), which could interfere with the efficient management of an underlying
fund. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends
for some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain
on an
investment in a small- or mid-cap company, if any gain is realized at all. The relative sizes of companies may change over time as the
securities market changes, and an underlying fund is not required to sell the securities of companies whose market capitalizations have
grown or decreased due to market fluctuations.
Foreign
Securities Risk.
The value of an underlying fund's foreign investments may be adversely affected by political and social instability in the home countries
of the issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which an underlying fund could lose its entire investments in a certain market) and the possible adoption of foreign
governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S.
companies, including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud
or corruption. Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies
making it more difficult for an underlying fund’s adviser to evaluate those companies. The laws of certain countries may put limits
on an underlying fund’s ability to recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security,
or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due
to the size of the market or other factors. Changes in political and economic factors in one country or region could adversely affect
conditions in another country or region. Investments in foreign securities may also expose an underlying fund to time-zone arbitrage risk.
At times, an underlying fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse
events that occur in that country or region. Unless an underlying fund has hedged its foreign currency exposure, foreign securities risk
also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign
currency (or other instruments through which an underlying fund has exposure to foreign currencies) to decline in value. Currency exchange
rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. For instance,
currency forward contracts, if used, could reduce performance if there are unanticipated changes in currency exchange rates.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies
10 Invesco
Active Allocation Fund
may
be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets may be limited which
can impede an underlying fund’s ability to evaluate such companies. In addition, certain emerging market countries may impose material
limitations on Public Company Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities, which can hinder
the PCAOB’s ability to engage in independent oversight or inspection of accounting firms located in or operating in certain emerging
markets. There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market countries
may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries have been engaged in programs to sell all or part of their interests
in government-owned or controlled enterprises. However, in certain emerging market countries, the ability of foreign entities to participate
in privatization programs may be limited by local law. There can be no assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Growth
Investing Risk. Growth companies are companies whose earnings
and stock prices are expected to grow at a faster rate than the overall market. If a growth company’s earnings or stock price fails
to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline sharply.
Growth companies can be new or established companies that may be entering a growth cycle in their business and therefore may experience
greater stock price fluctuations and risks of loss than larger, more established companies. Their anticipated growth may come from developing
new products or services or from expanding into new or growing markets. Growth companies may be applying new technologies, new or improved
distribution methods or new business models that could enable them to capture an important or dominant market position. They may have
a special area of expertise or the ability to take advantage of changes in demographic or other factors in a more profitable way. Newer
growth companies generally tend to invest a large part of their earnings in research, development or capital assets. Although newer growth
companies may not pay any dividends for some time, their stocks may be valued because of their potential for price increases. Growth investing
has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth investing is out
of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price and the securities
of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may also be more volatile
than other securities because of investor speculation.
Value
Investing Risk. Value investing entails the risk that if the market
does not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value investing
approach could also lead to acquiring fewer securities that might experience rapid price increases during times of market advances. This
could cause the investments to underperform strategies that seek capital appreciation by employing only a growth or other non-value approach.
Value investing has also gone in and out of favor during past market cycles and is likely to continue to do so. During periods when value
investing is out of favor or when markets are unstable, the securities of value companies may underperform the securities of growth companies
or the overall stock market.
Geographic
Focus Risk. An underlying fund may from time to time have a substantial
amount of its assets invested in securities of issuers located in a single country or a limited number of countries. If an underlying
fund focuses its investments in this manner, adverse economic, political or social conditions in those countries may have a significant
negative impact on an underlying fund’s investment performance. This risk is heightened if an underlying fund focuses its investments
in emerging market countries or developed countries prone to periods of instability.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries. Information about certain underlying funds investment in a market sector or group of industries is available in
its annual and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the SEC.
Momentum
Investing Risk.
In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style
of investing emphasizes investing in securities that have had better recent performance compared to other securities, on the theory that
these securities will continue to increase in value. Momentum investing is subject to the risk that the securities may be more volatile
than the market as a whole. High momentum may also be a sign that the securities’ prices have peaked, and therefore the returns
on securities that previously have exhibited price momentum may be less than returns on other styles of investing. Momentum can turn quickly,
and stocks that previously have exhibited high momentum may not experience continued positive momentum. An underlying fund may experience
significant losses if momentum stops, reverses or otherwise behaves differently than predicted. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment performance of an underlying fund may suffer.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer
11 Invesco
Active Allocation Fund
at lower
interest rates. Falling interest rates may also reduce an underlying fund’s distributable income because interest payments on floating
rate debt instruments held by an underlying fund will decline. An underlying fund could lose money on investments in debt securities if
the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an issuer
seeks to restructure the terms of its borrowings or an underlying fund is required to seek recovery upon a default in the payment of interest
or the repayment of principal, an underlying fund may incur additional expenses. Changes in an issuer’s financial strength, the
market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities.
An underlying fund’s adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security
at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central
bank policies could
also result in higher than normal redemptions by shareholders, which could potentially increase an underlying fund’s portfolio turnover
rate and transaction costs and potentially lower an underlying fund’s performance returns.
High
Yield Debt Securities (Junk Bond) Risk.
An underlying fund’s investments in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated
securities will subject an underlying fund to substantial risk of loss. These securities are considered to be speculative with respect
to the issuer’s ability to pay interest and principal when due and are more susceptible to default or decline in market value due
to adverse economic, regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield
debt securities tend to be very volatile. These securities are less liquid than investment grade debt securities and may be difficult
to sell at a desirable time or price, particularly in times of negative sentiment toward high yield securities.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, differ from
conventional debt securities because principal is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed
securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received earlier or later than
expected due to changes in prepayment rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a
result, an underlying fund may reinvest these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage-
and asset-backed securities also are subject to extension risk. An unexpected rise in interest rates could reduce the rate of prepayments
and extend the life of the mortgage- and asset-backed securities, causing the price of the mortgage- and asset-backed securities and an
underlying fund’s share price to fall and would make the mortgage- and asset-backed securities more sensitive to interest rate changes.
An unexpectedly high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities
and will result in losses to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid
than other types of securities and an underlying fund may be unable to sell these securities at the time or price it desires. During periods
of market stress or high redemptions, an underlying fund may be forced to sell these securities at significantly reduced prices, resulting
in losses. Liquid privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods of
market
stress. An underlying fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened
credit histories or with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools
that include subprime mortgages. Privately issued mortgage-related securities are not subject to the same underwriting requirements
for the underlying mortgages that are applicable to those mortgage-related securities that have government or government-sponsored entity
guarantees. As a result, the mortgage loans underlying privately issued mortgage-related securities may, and frequently do, have less
favorable collateral, credit risk, liquidity risk or other underwriting characteristics than government or government-sponsored mortgage-related
securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics.
Municipal
Securities Risk.
The risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the security.
Municipal obligations may be more susceptible to downgrades or defaults during recessions or similar periods of economic stress. Municipal
securities structured as revenue bonds are generally not backed by the taxing power of the issuing municipality but rather the revenue
from the particular project or entity for which the bonds were issued. If the Internal Revenue Service determines that an issuer of a
municipal security has not complied with applicable tax requirements, interest from the security could be treated as taxable, which could
result in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce
or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state
tax status of municipal securities.
Senior
Loans and Other Loans Risk. There are a number of risks associated
with an investment in Senior Loans including credit risk, interest rate risk, liquidity risk, valuation risk and prepayment risk. These
risks are typically associated with debt securities but may be heightened in part because of the limited public information regarding
Senior Loans. Senior Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating
rate loans adjusts periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on
resale, irregular trading activity, wide bid/ask spreads and extended trade settlement periods may impair an underlying fund’s ability
to sell Senior Loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective
investments. Extended trade settlement periods may result in cash not being immediately available to an underlying fund. As a result,
an underlying fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk
of holding Senior Loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans
can be affected by and is sensitive to, changes in government regulation and to economic downturns in the United States and abroad. These
risks could cause an underlying fund to lose income or principal on a particular investment, which in turn could affect an underlying
fund’s returns.
In
addition to the risks typically associated with debt securities senior loans
are also subject to the risk that a court could subordinate a senior loan, which typically holds a senior position in the capital structure
of a borrower, to presently existing or future indebtedness or take other action detrimental to the holders of senior loans. Loans usually
have mandatory and optional prepayment provisions. If a borrower prepays a loan, an underlying fund will have to reinvest the proceeds
in other loans or financial assets that may pay lower rates of return.
Loans
are subject to the risk that the value of the collateral, if any, securing
a loan may decline, be insufficient to meet the obligations of the
12 Invesco
Active Allocation Fund
borrower,
or be difficult to liquidate. In the event of a default, an underlying fund may have difficulty collecting on any collateral and would
not have the ability to collect on any collateral for an uncollateralized loan. In addition, the lenders’ security interest or their
enforcement of their security under the loan agreement may be found by a court to be invalid or the collateral may be used to pay other
outstanding obligations of the borrower. An underlying fund’s access to collateral, if any, may be limited by bankruptcy, other
insolvency laws, or by the type of loan an underlying fund has purchased. As a result, a collateralized loan may not be fully collateralized
and can decline significantly in value.
Loan
investments are often issued in connection with highly leveraged transactions.
Such transactions include leveraged buyout loans, leveraged recapitalization loans, and other types of acquisition financing. These obligations
are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy.
Highly leveraged loans also may be less liquid than other loans. If an underlying fund voluntarily or involuntarily sold those types of
loans, it might not receive the full value it expected.
Due
to restrictions on transfers in loan agreements and the nature of the
private syndication of loans including, for example, the lack of publicly-available information, some loans are not as easily purchased
or sold as publicly-traded securities. Some loans are illiquid, which may make it difficult for an underlying fund to value them or dispose
of them at an acceptable price when it wants to. Additionally, valuation of Senior Loans may require greater research due to limited public
information available and elements of judgment may play a greater role in valuation since there may be a lack of objective data available.
The market price of investments in floating rate loans is expected to be less affected by changes in interest rates than fixed-rate investments
because floating rate loans pay a floating rate of interest that will fluctuate as market interest rates do and therefore should more
closely track market movements in interest rates.
Direct
investments in loans and, to a lesser degree, investments in participation
interests in or assignments of loans may be limited. A limited availability of loans could reduce the amount of attractive investments
for an underlying fund. If market demand for loans increases, the interest paid by loans that an underlying fund holds may decrease.
Compared
to securities and to certain other types of financial assets, purchases
and sales of loans take relatively longer to settle. This extended settlement process can (i) increase the counterparty credit risk borne
by an underlying fund; (ii) leave an underlying fund unable to timely vote, or otherwise act with respect to, loans it has agreed to purchase;
(iii) delay an underlying fund from realizing the proceeds of a sale of a loan; (iv) inhibit an underlying fund’s ability to re-sell
a loan that it has agreed to purchase if conditions change (leaving an underlying fund more exposed to price fluctuations); (v) prevent
an underlying fund from timely collecting principal and interest payments; and (vi) expose an underlying fund to adverse tax or regulatory
consequences. To the extent the extended loan settlement process gives rise to short-term liquidity needs, such as the need to satisfy
redemption requests, an underlying fund may hold cash, sell investments or temporarily borrow from banks or other lenders. If an underlying
fund undertakes such measures, an underlying fund’s ability to pay redemption proceeds in a timely manner, as well as an underlying
fund’s performance, may be adversely affected.
If
an underlying fund invests in a loan via a participation, an underlying fund
will be exposed to the ongoing counterparty risk of the entity providing exposure to the loan (and, in certain circumstances, such entity’s
credit risk) in addition to the exposure an underlying fund has to the creditworthiness of the borrower. The terms of the participation
may not entitle an underlying fund to all rights of a direct lender under the loan (for example, with respect to consent, voting or enforcement
rights). Therefore, an underlying fund’s rights under a participation interest for a particular loan may be more limited than the
rights of the original lender or an investor who acquires an assignment of that loan. Where an underlying fund invests in a loan via a
participation, an underlying fund generally will have no right of direct
recourse
against the borrower or ability to otherwise directly enforce the terms of the loan agreement.
In
certain circumstances, loans may not be deemed to be securities, and
in the event of fraud or misrepresentation by a borrower or an arranger, lenders will not have the protection of the anti-fraud provisions
of the federal securities laws, as would be the case for bonds or stocks. Instead, in such cases, lenders generally rely on the contractual
provisions in the loan agreement itself, and common-law fraud protections under applicable state law.
Commodity-Linked
Notes Risk.
In addition to risks associated with the underlying commodities, investments in commodity-linked notes may be subject to additional risks,
such as non-payment of interest and loss of principal, counterparty risk, lack of a secondary market and risk of greater volatility than
traditional equity and debt securities.
An
underlying fund might not receive all or a portion of the interest due on
its investment or a return of its principal if there is a loss of value of the commodity, commodity index or other economic variable to
which the interest is linked. A liquid secondary market may not exist for certain commodity-linked notes, which may make it difficult
for an underlying fund to sell them at an acceptable time or price or to accurately value them. Commodity-linked notes are also subject
to counterparty risk, which is the risk that the issuer of the commodity-linked note will default or become bankrupt and not make timely
payment of principal and interest. The value of the commodity-linked notes an underlying fund buys may fluctuate significantly because
the values of the underlying investments to which they are linked are themselves volatile. Additionally, certain commodity-linked notes
employ “economic” leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease
of the underlying commodity, commodity index, or other economic variable. For example, the value of a three-times leveraged note will
change by a magnitude of three for every percentage change (positive or negative) in the value of the underlying commodity, index or other
economic variable. Such economic leverage will increase the volatility of the value of these commodity-linked notes and an underlying
fund to the extent it invests in such notes.
Foreign
Government Debt Risk. Investments
in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those
relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment
of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and an underlying
fund may have limited recourse in the event of a default against the defaulting government. A foreign government debtor’s willingness
or ability to repay principal and pay interest in a timely manner may be affected by, among other factors, its cash flow situation, the
extent of its foreign currency reserves, the availability of sufficient foreign exchange, the relative size of the debt burden, the foreign
government debtor’s policy toward its principal international lenders and local political constraints. Certain issuers of foreign
government debt may be dependent on disbursements from foreign governments, multinational agencies and other entities to reduce principal
and interest arrearages on their debt. Without the approval of debt holders, some governmental debtors have in the past been able to reschedule
or restructure their debt payments or declare moratoria on payments.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupanciesof real estate related to an underlying funds holdings. Real estate companies, including REITs
or similar structures, tend to be small- and mid-cap companies and their shares may be more volatile and less liquid than larger companies.
The value of investments in real estate related companies may be affected by the quality of management, the ability to repay loans, the
utilization of leverage and financial covenants related thereto, whether the company carries adequate insurance and environmental factors.
If a real estate related company defaults on certain
13 Invesco
Active Allocation Fund
types
of debt obligations held by the underlying fund, the underlying fund may acquire real estate directly, which involves additional risks
such as environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. In the years following the 2008 financial crisis,
the integrity of LIBOR was increasingly questioned because several banks contributing to its calculation were accused of rate manipulation
and because of a general contraction in the unsecured interbank lending market. As a result, regulators and financial industry working
groups in several jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to
replace LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the
Secured Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other
interbank offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which an underlying fund invests that utilize ARRs will
be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
Additionally, although regulators have generally prohibited banking institutions from entering into new contracts that reference those
USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and
implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy”
USD LIBOR instruments held by an underlying fund could result in losses to an underlying fund.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is
privately placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during
periods of market stress. If a significant amount of an underlying fund’s securities become illiquid, an underlying fund may not
be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. An underlying
fund may invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption
from registration under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically
may be resold only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers,
or in limited quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration.
Although such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company
Act of 1940, as amended, if there are an insufficient number of qualified institutional buyers
interested
in purchasing such securities at a particular time, an underlying fund may have difficulty selling such securities at a desirable time
or price. As a result, an underlying fund’s investment in such securities may be subject to increased liquidity risk. In addition,
the issuers of Rule 144A securities may require their qualified institutional buyers (such as an underlying fund) to keep certain offering
information confidential, which could adversely affect the ability of an underlying fund to sell such securities.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities. Also, restricted securities may be difficult to value
because market quotations may not be readily available, and the securities may have significant volatility. In addition, an underlying
fund may get only limited information about the issuer of a restricted security and therefore may be less able to predict a loss.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between an underlying fund and a counterparty. When an underlying fund is owed money on an OTC derivative, an underlying fund
is dependent on the counterparty to pay or, in some cases, deliver the underlying asset, unless an underlying fund can otherwise sell
its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers
and their creditworthiness (and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally.
In addition, in the event that a counterparty becomes bankrupt or insolvent, an underlying fund’s ability to recover the collateral
that an underlying fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange,
an underlying fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a guarantor for each
contractual obligation under such derivatives) for payment on derivative instruments for which an underlying fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in an underlying fund sustaining
a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have
the potential for unlimited loss, regardless
of the size of an underlying fund’s initial investment. Leverage may therefore make
an underlying fund’s returns more volatile
and increase the risk of loss. In certain market conditions, losses
on derivative instruments can grow larger while the value of an underlying fund’s other assets fall, resulting in an underlying
fund’s derivative positions becoming a larger percentage of an underlying fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional
14 Invesco
Active Allocation Fund
investments
and an underlying fund may be unable to sell or exit its derivative positions at a desirable time or price. This risk may be more acute
under adverse market conditions, during which an underlying fund may be most in need of liquidating its derivative positions. To the extent
that an underlying fund is unable to exit a derivative position because of market illiquidity, an underlying fund may not be able to prevent
further losses of value in its derivatives holdings and the liquidity of an underlying fund and its ability to meet redemption requests
may be impaired to the extent that a substantial portion of an underlying fund’s otherwise liquid assets must be used as margin.
Another consequence of illiquidity is that an underlying fund may be required to hold a derivative instrument to maturity and take or
make delivery of the underlying asset that an underlying fund’s adviser would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency
contracts are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency
movements will not be accurately predicted or do not correspond accurately to changes in the value of an underlying fund's holdings, which
could result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated
changes in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of
the currency increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Forward
Contracts Risk. The projection of short-term currency market movements
is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. The precise matching of the
amounts under forward contracts and the value of the securities involved generally will not be possible because the future value of securities
denominated in foreign currencies will change as a consequence of market movements between the date the forward contract is entered into
and the date it is sold. Investments in forward contracts involve the risk that anticipated currency movements will not be accurately
predicted, causing an underlying fund to sustain losses on these contracts and to pay additional transaction costs.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. An underlying fund may be disadvantaged if it is prohibited from executing a trade outside the daily
permissible price movement.
◾
Options
Risk. If an underlying fund sells a put option, there is a risk
that an underlying fund may be required to buy the underlying investment at a disadvantageous price. If an underlying fund sells a call
option, there is a risk that an underlying fund may be required to sell the underlying investment at a disadvantageous price. If an underlying
fund sells a call option on an investment that an underlying fund owns (a “covered call”) and the investment has increased
in value when the option is exercised, an underlying fund will be required to sell the investment at the call price and will not be able
to realize any of the investment’s value above the call price. Options may involve economic leverage, which could result in greater
price volatility than other investments.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed
on
a regulated market and cleared through a central clearing house counterparty, which may entail further risks and costs for an underlying
fund. Swap agreements are privately negotiated in the over-the-counter market and may be entered into as a bilateral contract or
may be centrally cleared. In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is submitted
for clearing to a central clearing house counterparty, and an underlying fund faces the central clearing house counterparty by means of
an account with a futures commission merchant that is a member of the clearing house.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of an underlying fund’s taxable income or gains, and may limit or prevent an underlying fund from using
certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to
implement or require an underlying fund to change its investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that an underlying fund uses derivatives for hedging or to gain or limit exposure to a particular market or
market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being
hedged or the relevant market or market segment, in which case an underlying fund may not realize the intended benefits. There is also
the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all.
An underlying fund’s use of derivatives may be limited by the requirements for taxation of an underlying fund as a regulated investment
company.
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment strategies will yield uncorrelated performance under all market conditions. In addition, the particular mix of
alternative investments in an underlying fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to
the risk that its alternative investments may undergo a correlation shift, resulting in returns that are correlated with the broader market
and/or with an underlying fund’s other alternative investments.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities
receive varying levels of support and may not be backed by the full faith and credit of the U.S.
Government, which could affect an underlying fund’s ability
to recover should they default. No assurance
can be given that the U.S. Government
will provide financial support to its
agencies and authorities if it is not obligated by law to do so.
Financial
Markets Regulatory Risk.
Policy changes by
the U.S. government or its regulatory agencies and political events within the U.S.
and abroad, changes to the monetary policy by the Federal Reserve
or other regulatory
actions, the
U.S. government’s
inability at times to agree on a long-term budget and deficit reduction plan or other legislation aimed at addressing financial or economic
conditions, the threat of a federal government shutdown,
and threats not to increase or suspend the federal government’s
debt limit, may affect investor and consumer confidence,
increase volatility in the financial markets,
perhaps suddenly and to
a significant degree, result in higher interest rates, and even
raise concerns about the U.S. government’s credit rating and ability to service its debt.
15 Invesco
Active Allocation Fund
Such
changes and events may adversely impact an underlying fund’s operations,
universe of potential investment options, and return potential.
Active
Trading Risk. Active trading of an underlying fund’s portfolio
securities may result in high brokerage costs, which may lower an underlying fund’s actual return. Active trading also may increase
the proportion of an underlying fund’s gains that are short term, which are taxed at a higher rate than long term gains.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. There can be no guarantee that the Fund’s Adviser’s
and certain underlying funds’ advisers' investment techniques or investment decisions will produce the desired results. Because
the investment process of the Fund relies heavily on its asset allocation process, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on the Fund’s net asset value. Similarly, because the investment
processes of certain underlying funds rely heavily on their security selection processes, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on certain underlying funds’ net asset values. Additionally,
legislative, regulatory, or tax developments may adversely affect management of the Fund and underlying funds and, therefore, their abilities
to achieve their investment objectives.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The
Adviser, as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with
certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to
provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including
the
Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Regulation
under the Commodity Exchange Act
The
Adviser is registered as a “commodity pool operator” (CPO) under the Commodity Exchange Act and the rules of the CFTC and
is subject to CFTC regulation with respect to the Fund. The CFTC has adopted rules regarding the disclosure, reporting and recordkeeping
requirements that apply with respect to the Fund as a result of the Adviser’s registration as a CPO. Generally, these rules allow
for substituted compliance with CFTC disclosure and shareholder reporting requirements, based on the Adviser’s compliance with comparable
SEC requirements. This means that for most of the CFTC’s disclosure and shareholder reporting requirements applicable to the Adviser
as the Fund’s CPO, the Adviser’s compliance with SEC disclosure and shareholder reporting requirements will be deemed to fulfill
the Adviser’s CFTC compliance obligations. However, as a result of CFTC regulation with respect to the Fund, the Fund may incur
additional compliance and other expenses. The Adviser is also registered as a “commodity trading advisor” (CTA) but, with
respect to the Fund, relies on an exemption from CTA regulation available for a CTA that also serves as the Fund’s CPO.
Adviser
Compensation
During
the fiscal year ended December 31, 2022, the Adviser received compensation of 0.09% of the Fund's average daily net assets, after fee
waiver and/or expense reimbursement, if any. The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under
the administrative services agreement with the Adviser.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for determining the asset class allocation, underlying fund selections and
target weightings for the Fund:
◾
Jeffrey
Bennett, CFA, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Mr. Bennett managed the predecessor fund since 2018 and was associated
with OppenheimerFunds, a global asset management firm, since 2016.
◾
Alessio
de Longis, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2019. Prior to joining Invesco, Mr. de Longis was associated with OppenheimerFunds, a global asset management firm, since 2004.
◾
Scott
Hixon, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 1994.
The
portfolio managers are assisted by investment professionals from the
Invesco Investment Solutions Team. Members of the team may change from time to time.
The
underlying funds are managed by portfolio managers.
More
information on the Fund’s portfolio managers and the portfolio managers
managing the affiliated underlying funds may be found at www.invesco.com/us. The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
16 Invesco
Active Allocation Fund
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category VI Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
17 Invesco
Active Allocation Fund
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the class
of shares, and the eleven-month period ended December 31, 2019. The financial highlights table is intended to help you understand the
Fund’s and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund
share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund
(assuming
reinvestment of all dividends and distributions). The information for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers
LLP, an independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in
the Fund’s annual report, which is available upon request. The information for fiscal years ended prior to May 24, 2019 has been
audited by the predecessor fund’s auditor. Effective September 30, 2019, the Fund changed its fiscal year end from January 31 to
December 31.
|
|
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(c)
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed(d)
|
Ratio
of net
investment
income
(loss)
to
average
net
assets |
Portfolio
turnover
(e)
|
|
Class
A | ||||||||||||||
|
Year
ended 12/31/22 |
$15.42
|
$0.15
|
$(3.12)
|
$(2.97)
|
$(0.17)
|
$(0.39)
|
$(0.56)
|
$11.89
|
(19.32)%(f)
|
$1,498,861
|
0.47%(f)
|
0.47%(f)
|
1.18%(f)
|
20%
|
|
Year
ended 12/31/21 |
14.70
|
0.10
|
1.92
|
2.02
|
(0.32)
|
(0.98)
|
(1.30)
|
15.42
|
13.92(f)
|
1,973,745
|
0.45(f)
|
0.47(f)
|
0.64(f)
|
16
|
|
Year
ended 12/31/20 |
14.66
|
0.13
|
1.76
|
1.89
|
(0.14)
|
(1.71)
|
(1.85)
|
14.70
|
13.04(f)
|
1,973,119
|
0.44(f)
|
0.48(f)
|
0.94(f)
|
70
|
|
Eleven
months ended 12/31/19 |
13.89
|
0.21
|
1.85
|
2.06
|
(0.44)
|
(0.85)
|
(1.29)
|
14.66
|
14.84
|
1,867,751
|
0.52(g)
|
0.56(g)
|
1.52(g)
|
24
|
|
Year
ended 01/31/19 |
15.25
|
0.15
|
(1.27)
|
(1.12)
|
(0.24)
|
—
|
(0.24)
|
13.89
|
(7.22)
|
1,636,759
|
0.53
|
0.57
|
1.04
|
38
|
|
Year
ended 01/31/18 |
12.68
|
0.10
|
2.63
|
2.73
|
(0.16)
|
—
|
(0.16)
|
15.25
|
21.62
|
1,888,596
|
0.53
|
0.59
|
0.75
|
9
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
15.01
|
0.05
|
(3.03)
|
(2.98)
|
(0.07)
|
(0.39)
|
(0.46)
|
11.57
|
(19.93)
|
167,991
|
1.23
|
1.23
|
0.42
|
20
|
|
Year
ended 12/31/21 |
14.34
|
(0.02)
|
1.86
|
1.84
|
(0.19)
|
(0.98)
|
(1.17)
|
15.01
|
13.01
|
247,857
|
1.21
|
1.23
|
(0.12)
|
16
|
|
Year
ended 12/31/20 |
14.35
|
0.02
|
1.70
|
1.72
|
(0.02)
|
(1.71)
|
(1.73)
|
14.34
|
12.18
|
263,343
|
1.20
|
1.24
|
0.18
|
70
|
|
Eleven
months ended 12/31/19 |
13.60
|
0.10
|
1.81
|
1.91
|
(0.31)
|
(0.85)
|
(1.16)
|
14.35
|
14.09
|
342,957
|
1.28(g)
|
1.32(g)
|
0.76(g)
|
24
|
|
Year
ended 01/31/19 |
14.92
|
0.04
|
(1.23)
|
(1.19)
|
(0.13)
|
—
|
(0.13)
|
13.60
|
(7.92)
|
489,474
|
1.28
|
1.32
|
0.28
|
38
|
|
Year
ended 01/31/18 |
12.41
|
(0.00)
|
2.57
|
2.57
|
(0.06)
|
—
|
(0.06)
|
14.92
|
20.72
|
579,999
|
1.28
|
1.34
|
(0.03)
|
9
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 12/31/22 |
15.31
|
0.12
|
(3.11)
|
(2.99)
|
(0.13)
|
(0.39)
|
(0.52)
|
11.80
|
(19.56)
|
127,968
|
0.73
|
0.73
|
0.92
|
20
|
|
Year
ended 12/31/21 |
14.60
|
0.06
|
1.91
|
1.97
|
(0.28)
|
(0.98)
|
(1.26)
|
15.31
|
13.64
|
166,900
|
0.71
|
0.73
|
0.38
|
16
|
|
Year
ended 12/31/20 |
14.58
|
0.09
|
1.74
|
1.83
|
(0.10)
|
(1.71)
|
(1.81)
|
14.60
|
12.70
|
147,675
|
0.70
|
0.74
|
0.68
|
70
|
|
Eleven
months ended 12/31/19 |
13.82
|
0.17
|
1.83
|
2.00
|
(0.39)
|
(0.85)
|
(1.24)
|
14.58
|
14.54
|
139,693
|
0.77(g)
|
0.81(g)
|
1.27(g)
|
24
|
|
Year
ended 01/31/19 |
15.17
|
0.11
|
(1.26)
|
(1.15)
|
(0.20)
|
—
|
(0.20)
|
13.82
|
(7.44)
|
125,162
|
0.78
|
0.82
|
0.78
|
38
|
|
Year
ended 01/31/18 |
12.62
|
0.07
|
2.61
|
2.68
|
(0.13)
|
—
|
(0.13)
|
15.17
|
21.28
|
134,457
|
0.78
|
0.84
|
0.49
|
9
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
15.70
|
0.19
|
(3.19)
|
(3.00)
|
(0.20)
|
(0.39)
|
(0.59)
|
12.11
|
(19.15)
|
25,095
|
0.23
|
0.23
|
1.42
|
20
|
|
Year
ended 12/31/21 |
14.94
|
0.14
|
1.96
|
2.10
|
(0.36)
|
(0.98)
|
(1.34)
|
15.70
|
14.24
|
31,941
|
0.21
|
0.23
|
0.88
|
16
|
|
Year
ended 12/31/20 |
14.88
|
0.17
|
1.77
|
1.94
|
(0.17)
|
(1.71)
|
(1.88)
|
14.94
|
13.22
|
28,284
|
0.20
|
0.24
|
1.18
|
70
|
|
Eleven
months ended 12/31/19 |
14.08
|
0.24
|
1.88
|
2.12
|
(0.47)
|
(0.85)
|
(1.32)
|
14.88
|
15.11
|
26,168
|
0.28(g)
|
0.32(g)
|
1.76(g)
|
24
|
|
Year
ended 01/31/19 |
15.42
|
0.19
|
(1.29)
|
(1.10)
|
(0.24)
|
—
|
(0.24)
|
14.08
|
(7.00)
|
24,190
|
0.29
|
0.33
|
1.28
|
38
|
|
Year
ended 01/31/18 |
12.81
|
0.13
|
2.68
|
2.81
|
(0.20)
|
—
|
(0.20)
|
15.42
|
21.98
|
63,523
|
0.28
|
0.34
|
0.90
|
9
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
15.39
|
0.19
|
(3.12)
|
(2.93)
|
(0.20)
|
(0.39)
|
(0.59)
|
11.87
|
(19.08)
|
10
|
0.17
|
0.17
|
1.48
|
20
|
|
Year
ended 12/31/21 |
14.68
|
0.14
|
1.92
|
2.06
|
(0.37)
|
(0.98)
|
(1.35)
|
15.39
|
14.19
|
11
|
0.19
|
0.21
|
0.90
|
16
|
|
Year
ended 12/31/20 |
14.65
|
0.17
|
1.75
|
1.92
|
(0.18)
|
(1.71)
|
(1.89)
|
14.68
|
13.29
|
10
|
0.18
|
0.22
|
1.20
|
70
|
|
Period
ended 12/31/19(h)
|
14.28
|
0.16
|
1.54
|
1.70
|
(0.48)
|
(0.85)
|
(1.33)
|
14.65
|
11.94
|
10
|
0.22(g)
|
0.26(g)
|
1.82(g)
|
24
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
15.39
|
0.18
|
(3.12)
|
(2.94)
|
(0.20)
|
(0.39)
|
(0.59)
|
11.86
|
(19.14)
|
27
|
0.23
|
0.23
|
1.42
|
20
|
|
Year
ended 12/31/21 |
14.67
|
0.14
|
1.93
|
2.07
|
(0.37)
|
(0.98)
|
(1.35)
|
15.39
|
14.29
|
14
|
0.19
|
0.21
|
0.90
|
16
|
|
Year
ended 12/31/20 |
14.65
|
0.17
|
1.75
|
1.92
|
(0.19)
|
(1.71)
|
(1.90)
|
14.67
|
13.25
|
10
|
0.17
|
0.22
|
1.21
|
70
|
|
Period
ended 12/31/19(h)
|
14.28
|
0.17
|
1.54
|
1.71
|
(0.49)
|
(0.85)
|
(1.34)
|
14.65
|
12.02
|
10
|
0.14(g)
|
0.18(g)
|
1.90(g)
|
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)
|
In
addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of
the underlying funds in which the Fund invests. Because
the
underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees
and expenses incurred indirectly by the Fund will vary.
Estimated
underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the
underlying funds and are deducted from the value
of
the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the
Fund’s total return. Estimated acquired fund fees from
underlying
funds was 0.49%, 0.53% and 0.63% for the years ended December 31, 2022, 2021 and 2020, respectively. |
18 Invesco
Active Allocation Fund
|
(d)
|
Does
not include indirect expenses from affiliated fund fees and expenses of 0.62%, 0.63% and 0.63% for the eleven months ended December 31,
2019, and for the years ended January 31,
2019
and 2018, respectively. |
|
(e)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(f)
|
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 0.24% for the years ended December 31, 2022,
2021
and 2020. |
|
(g)
|
Annualized.
|
|
(h)
|
Commencement
date after the close of business on May 24, 2019. |
19 Invesco
Active Allocation Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Active Allocation Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
O-OPSAA-PRO-1
|
Prospectus
April
28,
2023
Class:
A (CNSAX), C (CNSCX),
Y (CNSDX), R5 (CNSIX),
R6 (CNSFX)
Invesco
Convertible Securities Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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A-3
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A-10
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A-13
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A-16
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A-17
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A-17
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A-18
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A-24
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
Convertible Securities Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is total return through growth of capital and current income.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
|
Class:
|
A
|
C
|
Y
|
R5
|
R6
|
|
Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
5.50%
|
None
|
None
|
None
|
None
|
|
| |||||
|
Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or redemption
proceeds,
whichever is less) |
None1
|
1.00%
|
None
|
None
|
None
|
|
| |||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
A contingent deferred sales charge may
apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$641
|
$833
|
$1,041
|
$1,641
|
|
| ||||
|
Class
C |
$270
|
$526
|
$907
|
$1,782
|
|
| ||||
|
Class
Y |
$70
|
$221
|
$384
|
$859
|
|
| ||||
|
Class
R5 |
$66
|
$208
|
$362
|
$810
|
|
| ||||
|
Class
R6 |
$59
|
$186
|
$324
|
$726
|
|
| ||||
You
would pay the following expenses if you did not redeem your shares:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$641
|
$833
|
$1,041
|
$1,641
|
|
| ||||
|
Class
C |
$170
|
$526
|
$907
|
$1,782
|
|
| ||||
|
Class
Y |
$70
|
$221
|
$384
|
$859
|
|
| ||||
|
Class
R5 |
$66
|
$208
|
$362
|
$810
|
|
| ||||
|
Class
R6 |
$59
|
$186
|
$324
|
$726
|
|
| ||||
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 45%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in convertible
securities, and in derivatives and other instruments that have economic characteristics similar to such securities. A convertible security
is a bond, preferred stock or other security that may be converted into a prescribed amount of common stock at a prestated price.
The
Fund may invest in below-investment grade securities. Below-investment
grade securities are commonly referred to as junk bonds. Investment grade securities are: (i) securities rated BBB- or higher by S&P
Global Ratings (S&P) or Baa3 or higher by Moody’s Investors Service, Inc. (Moody’s) or an equivalent rating by another
nationally recognized statistical rating organization (NRSRO), (ii) securities with comparable short-term NRSRO ratings, or (iii) unrated
securities determined by Invesco Advisers, Inc. (Invesco or the Adviser), the Fund’s investment adviser, to be of comparable quality,
each at the time of purchase. Many convertible securities have credit ratings that are below investment grade.
The
Fund may invest up to 10% of its net assets in synthetic convertible securities
and up to 25% of its net assets in exchangeable convertible securities. The Fund may invest up to 20% of its net assets in common stocks,
non-convertible preferred stocks and non-convertible fixed-income securities.
The
Fund may invest up to 20% of its net assets in foreign securities, including
securities of issuers located in emerging markets countries (i.e., those that are generally in the early stages of their industrial cycles),
non-U.S. dollar denominated securities and depositary receipts. This percentage limitation, however, does not apply to securities of foreign
companies that are listed in the United States on a national securities exchange.
The
Fund may invest in illiquid or thinly traded securities. The Fund may also
invest in securities that are subject to resale restrictions such as those contained in Rule 144A promulgated under the Securities Act
of 1933, as amended.
The
Fund can invest in derivative instruments including forward foreign currency
contracts.
The
Fund can use forward foreign currency contracts to hedge against adverse
movements in the foreign currencies in which portfolio securities are denominated; though the Fund has not historically used these instruments.
The
Fund focuses on investing in traditional convertible securities that offer
a balanced risk reward profile over a full market cycle. The Fund invests in traditional convertible securities with reasonable valuations
that show potential for strong total return through interest or dividend, coupled with the upside participation found in the option value
embedded in the securities. The portfolio managers focus on positions issued by
1 Invesco
Convertible Securities Fund
well-managed
companies with strong balance sheets, a clear business focus, and competitive advantages versus their peers as determined by the portfolio
managers. Alpha (return on investments in excess of the ICE BofA U.S. Convertible Index) is also added to the portfolio through careful
credit analysis and security selection.
The
portfolio managers employ a barbell approach to investing, in which the
majority of the portfolio consists of “traditional” convertibles, and the remainder makes up the “barbell.” This
allows them to target the delta, or equity sensitivity of the portfolio, based on market conditions. The portfolio managers will increase
or decrease the Fund’s delta based on their macro-economic views. For instance, in a strong equity market, the team may increase
exposure to equity-like convertible securities. Equity-like convertible securities exhibit characteristics such as greater equity sensitivity
and lower conversion premiums. Conversely, in a weak equity market, the team may seek to reduce exposure to equity-like convertible securities,
investing more in traditional and “busted” or fixed-income-like convertible securities. Busted convertible securities exhibit
more bond-like characteristics such as higher conversion premiums and lower downside risk relative to the common stock from which the
security was converted.
Decisions
to purchase or sell securities are determined by the relative value
considerations of the portfolio managers, which factor in economic and credit-related fundamentals, market supply and demand, market dislocations
and situation-specific opportunities.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing. An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. The principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism,
economic crisis or adverse investor sentiment generally. During
a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance
that specific investments held by the Fund will rise in value.
Convertible
Securities Risk. The
market values of convertible securities are affected by market interest rates, the risk of actual issuer default on interest or principal
payments and the value of the underlying common stock into which the convertible security may be converted. Additionally, a convertible
security is subject to the same types of market and issuer risks that apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events,
and, as a result, are subject to an increased risk of loss. Convertible securities may be rated below investment grade and therefore considered
to have more speculative characteristics and greater susceptibility to default or decline in market value than investment grade securities.
Debt
Securities Risk.
The prices of debt securities held by the Fund will be affected by changes in interest rates, the creditworthiness of the issuer and other
factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has a greater
impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the
proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling
interest
rates may also reduce the Fund’s distributable income because interest payments on floating rate debt instruments held by the Fund
will decline. The Fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations to make
interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s perception
of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s credit
analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to sell a
debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may
decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially
increase the Fund’s portfolio turnover rate and transaction costs.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many
other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
High
Yield Debt Securities (Junk Bond) Risk.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial
risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest and principal
when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities. Prices
of high yield debt securities tend to be very volatile.
Sector
Focus Risk. The Fund may from time to time have a significant
amount of its assets invested in one market sector or group of related industries. In this event, the Fund’s performance will depend
to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose
significant value if conditions adversely affect that sector or group of industries.
Foreign
Securities Risk.
The Fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies,
difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible
seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a
certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign companies generally
may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing and accounting
controls, and may therefore be more susceptible to fraud or corruption. There may be less public information available about foreign companies
than U.S. companies, making it difficult to evaluate those foreign companies. Unless the Fund has hedged its foreign currency exposure,
foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities
denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value.
Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful.
Depositary
Receipts Risk. Investing in depositary receipts involves the same
risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation
to
2 Invesco
Convertible Securities Fund
distribute
shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts.
The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to
evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly
and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization
of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country,
protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Liquidity
Risk.
The Fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire investment
in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of the Fund’s
securities become illiquid, the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly
reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and the Fund may be unable to dispose of the securities at a desirable time or price.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent the Fund from disposing
of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular restricted
security. Transaction costs may be higher for restricted securities and such securities may be difficult to value and may have significant
volatility.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise
perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic
exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result
in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the
anticipated
value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments
may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that
could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For
example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits,
particularly during adverse market conditions.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management
of the Fund and, therefore, the ability of the Fund to achieve its investment objective.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The bar chart shows changes in the performance
of the Fund from year to year as of December 31. The performance table compares the Fund's performance to that of a broad-based/style-specific
securities market benchmark and a peer group benchmark comprised of funds with investment objectives and strategies similar to those of
the Fund (in that order).
The
Fund's past performance (before and after taxes) is not necessarily an indication of its future performance.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund's website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
23.66%
|
|
Worst
Quarter |
June
30, 2022 |
-13.38%
|
3 Invesco
Convertible Securities Fund
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
7/28/1997
|
-20.36%
|
7.51%
|
7.45%
|
|
Return
After Taxes on Distributions |
|
-21.09
|
4.49
|
5.19
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
-11.62
|
5.56
|
5.46
|
|
| ||||
|
Class
C |
7/28/1997
|
-17.17
|
7.92
|
7.43
|
|
| ||||
|
Class
Y |
7/28/1997
|
-15.52
|
8.99
|
8.32
|
|
| ||||
|
Class
R5 |
5/23/2011
|
-15.51
|
9.01
|
8.36
|
|
| ||||
|
Class
R6 |
9/24/2012
|
-15.45
|
9.10
|
8.45
|
|
| ||||
|
ICE
BofA US Convertible Index (reflects
no
deduction
for fees, expenses or taxes) |
|
-18.63
|
9.31
|
10.02
|
|
| ||||
|
Lipper
Convertible Securities Funds Index |
|
-17.06
|
9.20
|
8.97
|
|
| ||||
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Ellen
Gold |
Portfolio
Manager (lead) |
2010
(predecessor fund 1998)* |
|
| ||
|
Ramez
Nashed |
Portfolio
Manager |
2010
(predecessor fund 2006)* |
|
| ||
*Predecessor
fund refers to the Morgan Stanley Convertible Securities Trust,
which was reorganized into the Fund after the close of business on June 1, 2010.
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529
college
savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is total return through growth of capital and current income. The Fund’s investment objective
may be changed by the Board of Trustees (the Board) without shareholder approval.
The
Fund invests, under normal circumstances, at least 80% of its net assets
(plus any borrowings for investment purposes) in convertible securities, and in derivatives and other instruments that have economic characteristics
similar to such securities. A convertible security is a bond, preferred stock or other security that may be converted into a prescribed
amount of common stock at a prestated price. Invesco may retain that common stock to permit its orderly sale or to establish long-term
holding periods for tax purposes. The Fund is not required to sell the common stock to assure that the required percentage of its assets
is invested in convertible securities.
The
Fund may invest in below-investment grade securities. Below-investment
grade securities are commonly referred to as junk bonds. Investment grade securities are: (i) securities rated BBB- or higher by S&P
or Baa3 or higher by Moody’s or an equivalent rating by another NRSRO, (ii) securities with comparable short-term NRSRO ratings,
or (iii) unrated securities determined by Invesco to be of comparable quality, each at the time of purchase. Many convertible securities
have credit ratings that are below investment grade.
The
Fund may invest up to 10% of its net assets in synthetic convertible securities
and up to 25% of its net assets in exchangeable convertible securities. Unlike traditional convertible securities whose conversion values
are based on the value of the common stock of the issuer of the convertible security, synthetic and exchangeable convertible securities
are preferred stocks or debt obligations of an issuer, which are combined with an equity component, whose conversion values are based
on the value of the common stock of a different issuer or a particular benchmark (which may include a foreign issuer or basket of foreign
stocks, or a company whose stock is not yet publicly traded). In many cases, synthetic and exchangeable
4 Invesco
Convertible Securities Fund
convertible
securities are not convertible prior to maturity, at which time the value of the security is paid in cash by the issuer.
The
Fund may invest up to 20% of its net assets in common stocks, non-convertible
preferred stocks and non-convertible fixed-income securities.
The
Fund may invest up to 20% of its net assets in foreign securities, including
securities of issuers located in emerging markets countries (i.e., those that are generally in the early stages of their industrial cycles),
non-U.S. dollar denominated securities and depositary receipts. This percentage limitation, however, does not apply to securities of foreign
companies that are listed in the United States on a national securities exchange. A depositary receipt is generally issued by a bank or
financial institution and represents an ownership interest in the common stock or other equity securities of a foreign company.
The
Fund may invest in illiquid or thinly traded securities. The Fund may also
invest in securities that are subject to resale restrictions such as those contained in Rule 144A promulgated under the Securities Act
of 1933, as amended.
The
Fund can invest in derivative instruments including forward foreign currency
contracts.
A
forward foreign currency contract is an agreement between parties to exchange
a specified amount of currency at a specified future time at a specified rate. The Fund can use forward foreign currency contracts to
hedge against adverse movements in the foreign currencies in which portfolio securities are denominated; though the Fund has not historically
used these instruments.
The
Fund focuses on investing in traditional convertible securities that offer
a balanced risk reward profile over a full market cycle. The Fund invests in traditional convertible securities with reasonable valuations
that show potential for strong total return through interest or dividend, coupled with the upside participation found in the option value
embedded in the securities. The portfolio managers focus on positions issued by well-managed companies with strong balance sheets, a clear
business focus, and competitive advantages versus their peers as determined by the portfolio managers. Alpha (return on investments in
excess of the ICE BofA U.S. Convertible Index) is also added to the portfolio through careful credit analysis and security selection.
The
portfolio managers employ a barbell approach to investing, in which the
majority of the portfolio consists of “traditional” convertibles, and the remainder makes up the “barbell.” This
allows them to target the delta, or equity sensitivity of the portfolio, based on market conditions. The portfolio managers will increase
or decrease the Fund’s delta based on their macro-economic views. For instance, in a strong equity market, the team may increase
exposure to equity-like convertible securities. Equity-like convertible securities exhibit characteristics such as greater equity sensitivity
and lower conversion premiums. Conversely, in a weak equity market, the team may seek to reduce exposure to equity-like convertible securities,
investing more in traditional and “busted” or fixed-income-like convertible securities. Busted convertible securities exhibit
more bond-like characteristics such as higher conversion premiums and lower downside risk relative to the common stock from which the
security was converted.
Decisions
to purchase or sell securities are determined by the relative value
considerations of the portfolio managers, which factor in economic and credit-related fundamentals, market supply and demand, market dislocations
and situation-specific opportunities.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments
described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
the Fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector,
such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters, widespread
disease or other public health issues, war, military conflict, acts of terrorism,
economic crisis or other events may have a significant impact
on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances may also
impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in the financial
markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held
by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO)
member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine (and the potential
for further sanctions in response to Russia’s continued military activity)
may escalate.
These and other corresponding events, have had, and could continue
to have, severe negative effects on regional and global economic and financial markets, including increased volatility, reduced liquidity,
and overall uncertainty. The negative impacts may be particularly acute in certain sectors including, but not limited to, energy and financials.
Russia may take additional countermeasures or retaliatory actions (including cyberattacks), which could exacerbate negative consequences
on global financial markets. The duration of the conflict and corresponding sanctions and related events cannot be predicted. The foregoing
may result in a negative impact on Fund performance and the value of an investment in the Fund, even beyond any direct investment exposure
the Fund may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
5 Invesco
Convertible Securities Fund
Convertible
Securities Risk.
The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the
value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be
able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or
the market’s perception of the issuer’s creditworthiness. Convertible securities can be converted into or exchanged for a
set amount of common stock of an issuer within a particular period of time at a specified price or according to a price formula. Convertible
debt securities pay interest and convertible preferred stocks pay dividends until they mature or are converted, exchanged or redeemed.
Some convertible debt securities may be considered “equity equivalents” because of the feature that makes them convertible
into common stock. Since a convertible security derives a portion of its value from the common stock into which it may be converted, a
convertible security is also subject to the same types of market and issuer risks that
apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events.
These convertible securities are subject to an increased risk of loss and are generally subordinate in rank to other debt obligations
of the issuer. Convertible securities may be rated below investment grade and therefore considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
Debt
Securities Risk.
The prices of debt securities held by the Fund will be affected by changes in interest rates, the creditworthiness of the issuer and other
factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has a greater
impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the
proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s
distributable income because interest payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money
on investments in debt securities if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal
in a timely manner. If an issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default
in the payment of interest or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial
strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of
debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security
at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may
decline. Changes in central
bank policies could
also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate
and transaction costs and potentially lower the Fund’s performance returns.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the issuer in
a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital
structure,
subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s financial
condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally offer
no voting rights with respect to the issuer.
High
Yield Debt Securities (Junk Bond) Risk.
The Fund’s investments in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated securities
will subject the Fund to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s
ability to pay interest and principal when due and are more susceptible to default or decline in market value due to adverse economic,
regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield debt securities tend
to be very volatile. These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable
time or price, particularly in times of negative sentiment toward high yield securities.
Sector
Focus Risk. The Fund may from time to time have a significant
amount of its assets invested in one market sector or group of related industries. The prices of stocks of issuers in a sector or group
of industries may
go up and down in response to changes in economic conditions, government regulations, availability of basic resources or supplies, or
other events that affect that industry or sector more than others. In this event, the Fund’s performance will depend to a greater
extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value
if conditions adversely affect that sector or group of industries. Information about the Fund’s investment in a market sector or
group of industries is available in its annual and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the
SEC.
Foreign
Securities Risk.
The value of the Fund's foreign investments may be adversely affected by political and social instability in the home countries of the
issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental
restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S. companies,
including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud or corruption.
Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies making it
more difficult for the Adviser to evaluate those companies. The laws of certain countries may put limits on the Fund’s ability to
recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security, or any of their agents, goes bankrupt.
Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to the size of the market or other factors.
Changes in political and economic factors in one country or region could adversely affect conditions in another country or region. Investments
in foreign securities may also expose the Fund to time-zone arbitrage risk. At times, the Fund may emphasize investments in a particular
country or region and may be subject to greater risks from adverse events that occur in that country or region. Unless the Fund has hedged
its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may
cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign
currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies,
if used, are not always successful. For instance, currency forward contracts, if used by the Fund, could reduce performance if there are
unanticipated changes in currency exchange rates.
6 Invesco
Convertible Securities Fund
Depositary
Receipts Risk.
Depositary receipts involve many of the same risks as those associated with direct investment in foreign securities. In addition, the
underlying issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, are under no obligation
to distribute shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to
the deposited securities. The Fund may therefore receive less timely information or have less control than if it invested directly in
the foreign issuer.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede the Fund’s ability to evaluate such companies. In addition, certain emerging market countries may
impose material limitations on Public Company Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities,
which can hinder the PCAOB’s ability to engage in independent oversight or inspection of accounting firms located in or operating
in certain emerging markets. There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market countries
may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries
have
been engaged in programs to sell all or part of their interests in government-owned or controlled enterprises. However, in certain emerging
market countries, the ability of foreign entities to participate in privatization programs may be limited by local law. There can be no
assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Liquidity
Risk.
The Fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire investment
in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is privately
placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during periods
of market stress. If a significant amount of the Fund’s securities become illiquid, the Fund may not be able to timely pay redemption
proceeds and may need to sell securities at significantly reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. The Fund may
invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption from registration
under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically may be resold
only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers, or in limited
quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration. Although
such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company Act of 1940,
as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities at a particular
time, the Fund may have difficulty selling such securities at a desirable time or price. As a result, the Fund’s investment in such
securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities may require their qualified institutional
buyers (such as the Fund) to keep certain offering information confidential, which could adversely affect the ability of the Fund to sell
such securities.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent the Fund from disposing
of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular restricted
security. Transaction costs may be higher for restricted securities. Also, restricted securities may be difficult to value because market
quotations may not be readily available, and the securities may have significant volatility. In addition, the Fund may get only limited
information about the issuer of a restricted security and therefore may be less able to predict a loss.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between the Fund and a counterparty. When the Fund is owed money on an OTC derivative, the Fund is dependent on the counterparty
to pay or, in some cases, deliver the underlying asset, unless the Fund can otherwise sell its derivative contract to a third party prior
to its expiration. Many counterparties are financial institutions such as banks and broker-dealers and their creditworthiness (and ability
to pay or perform) may be negatively impacted by factors affecting financial institutions generally. In addition, in the event that a
counterparty becomes bankrupt or insolvent, the Fund’s ability to recover the collateral that the Fund has on deposit with the counterparty
could be
7 Invesco
Convertible Securities Fund
delayed
or impaired. For derivatives traded on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange
clearing house (which acts as a guarantor for each contractual obligation under such derivatives) for payment on derivative instruments
for which the Fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a
loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless of the size of the Fund’s initial investment. Leverage may therefore
make the Fund’s returns more volatile and increase the risk of loss. In certain market conditions, losses on derivative instruments
can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions becoming a larger
percentage of the Fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional investments and the Fund
may be unable to sell or exit its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. To the extent that the Fund is unable to
exit a derivative position because of market illiquidity, the Fund may not be able to prevent further losses of value in its derivatives
holdings and the liquidity of the Fund and its ability to meet redemption requests may be impaired to the extent that a substantial portion
of the Fund’s otherwise liquid assets must be used as margin. Another consequence of illiquidity is that the Fund may be required
to hold a derivative instrument to maturity and take or make delivery of the underlying asset that the Adviser would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency
contracts are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency
movements will not be accurately predicted or do not correspond accurately to changes in the value of the fund's holdings, which could
result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated changes
in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of the currency
increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of the Fund’s taxable income or gains, and may limit or prevent the Fund from using certain types of
derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to implement or require
the Fund to change its investment strategy. Derivatives strategies may not always be successful. For example, to the extent that
the Fund uses derivatives for hedging or to gain or limit exposure to a particular market or market segment, there may be imperfect correlation
between the value of the derivative instrument and the
value
of the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits.
There is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging
benefits at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment
company.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. There can be no guarantee that the Adviser’s investment techniques or investment
decisions will produce the desired results. Additionally, legislative, regulatory, or tax developments may affect the investments or investment
strategies available to the Adviser in connection with managing the Fund, which may also adversely affect the ability of the Fund to achieve
its investment objective.
Portfolio
Holdings
A
description of the Fund's policies and procedures with respect to the disclosure of the Fund's portfolio holdings is available in the
Fund's SAI, which is available at www.invesco.com/us.
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other investment portfolios
that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance of the Fund’s day-to-day
management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as successor in interest
to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
During
the fiscal year ended December 31, 2022, the Adviser received compensation of 0.49% of the Fund's average daily net assets, after fee
waiver and/or expense reimbursement, if any.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of
8 Invesco
Convertible Securities Fund
the Fund is available
in the Fund’s most recent annual or semi-annual report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Ellen
Gold (lead manager), Portfolio Manager, who has been responsible for the Fund since 2010 and has been associated with Invesco and/or its
affiliates since 2010. Ms. Gold served as Portfolio Manager of the predecessor fund since 1998.
◾
Ramez
Nashed, Portfolio Manager, who has been responsible for the Fund since 2010 and has been associated with Invesco and/or its affiliates
since 2010. Mr. Nashed served as Portfolio Manager of the predecessor fund since 2006.
A
lead or co-lead manager generally has final authority over all
aspects of the Fund’s investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio
construction techniques, portfolio risk assessment, and the management of daily cash flows in accordance with portfolio holdings. The
degree to which a lead or co-lead manager may perform these functions, and the nature of these functions, may change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund’s SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, quarterly.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
9 Invesco
Convertible Securities Fund
The
financial highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of
the Fund or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
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 | ||||||||||||||
|
Year
ended 12/31/22 |
$25.93
|
$0.20
|
$(4.26)
|
$(4.06)
|
$(0.19)
|
$(0.59)
|
$(0.78)
|
$21.09
|
(15.72)%
|
$492,448
|
0.93%
|
0.93%
|
0.86%
|
45%
|
|
Year
ended 12/31/21 |
31.91
|
0.14
|
1.17
|
1.31
|
(0.23)
|
(7.06)
|
(7.29)
|
25.93
|
4.68
|
666,916
|
0.88
|
0.88
|
0.43
|
61
|
|
Year
ended 12/31/20 |
24.64
|
0.23
|
10.47
|
10.70
|
(0.37)
|
(3.06)
|
(3.43)
|
31.91
|
44.35
|
675,347
|
0.91
|
0.91
|
0.84
|
65
|
|
Year
ended 12/31/19 |
21.42
|
0.28
|
4.28
|
4.56
|
(0.36)
|
(0.98)
|
(1.34)
|
24.64
|
21.42(d)
|
473,599
|
0.90(d)
|
0.90(d)
|
1.13(d)
|
57
|
|
Year
ended 12/31/18 |
24.41
|
0.28
|
(0.62)
|
(0.34)
|
(0.57)
|
(2.08)
|
(2.65)
|
21.42
|
(1.71)(e)
|
407,548
|
0.90(e)
|
0.90(e)
|
1.09(e)
|
62
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
25.72
|
0.03
|
(4.22)
|
(4.19)
|
(0.03)
|
(0.59)
|
(0.62)
|
20.91
|
(16.35)(f)
|
21,915
|
1.66(f)
|
1.66(f)
|
0.13(f)
|
45
|
|
Year
ended 12/31/21 |
31.73
|
(0.09)
|
1.16
|
1.07
|
(0.02)
|
(7.06)
|
(7.08)
|
25.72
|
3.94(g)
|
44,798
|
1.60(g)
|
1.60(g)
|
(0.29)(g)
|
61
|
|
Year
ended 12/31/20 |
24.51
|
0.03
|
10.41
|
10.44
|
(0.16)
|
(3.06)
|
(3.22)
|
31.73
|
43.25
|
61,221
|
1.66
|
1.66
|
0.09
|
65
|
|
Year
ended 12/31/19 |
21.31
|
0.10
|
4.26
|
4.36
|
(0.18)
|
(0.98)
|
(1.16)
|
24.51
|
20.54(d)
|
65,607
|
1.63(d)
|
1.63(d)
|
0.40(d)
|
57
|
|
Year
ended 12/31/18 |
24.30
|
0.08
|
(0.62)
|
(0.54)
|
(0.37)
|
(2.08)
|
(2.45)
|
21.31
|
(2.48)(e)
|
81,529
|
1.66(e)
|
1.66(e)
|
0.33(e)
|
62
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
25.98
|
0.26
|
(4.27)
|
(4.01)
|
(0.25)
|
(0.59)
|
(0.84)
|
21.13
|
(15.51)
|
345,453
|
0.68
|
0.68
|
1.11
|
45
|
|
Year
ended 12/31/21 |
31.96
|
0.22
|
1.17
|
1.39
|
(0.31)
|
(7.06)
|
(7.37)
|
25.98
|
4.93
|
562,488
|
0.63
|
0.63
|
0.68
|
61
|
|
Year
ended 12/31/20 |
24.68
|
0.30
|
10.48
|
10.78
|
(0.44)
|
(3.06)
|
(3.50)
|
31.96
|
44.69
|
647,484
|
0.66
|
0.66
|
1.09
|
65
|
|
Year
ended 12/31/19 |
21.44
|
0.33
|
4.30
|
4.63
|
(0.41)
|
(0.98)
|
(1.39)
|
24.68
|
21.73
|
582,112
|
0.67
|
0.67
|
1.36
|
57
|
|
Year
ended 12/31/18 |
24.44
|
0.33
|
(0.62)
|
(0.29)
|
(0.63)
|
(2.08)
|
(2.71)
|
21.44
|
(1.51)
|
583,289
|
0.66
|
0.66
|
1.33
|
62
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
25.93
|
0.26
|
(4.26)
|
(4.00)
|
(0.26)
|
(0.59)
|
(0.85)
|
21.08
|
(15.51)
|
556
|
0.64
|
0.64
|
1.15
|
45
|
|
Year
ended 12/31/21 |
31.91
|
0.23
|
1.17
|
1.40
|
(0.32)
|
(7.06)
|
(7.38)
|
25.93
|
4.96
|
688
|
0.60
|
0.60
|
0.71
|
61
|
|
Year
ended 12/31/20 |
24.65
|
0.31
|
10.46
|
10.77
|
(0.45)
|
(3.06)
|
(3.51)
|
31.91
|
44.70
|
1,773
|
0.64
|
0.64
|
1.11
|
65
|
|
Year
ended 12/31/19 |
21.43
|
0.34
|
4.29
|
4.63
|
(0.43)
|
(0.98)
|
(1.41)
|
24.65
|
21.74
|
1,334
|
0.64
|
0.64
|
1.39
|
57
|
|
Year
ended 12/31/18 |
24.43
|
0.34
|
(0.62)
|
(0.28)
|
(0.64)
|
(2.08)
|
(2.72)
|
21.43
|
(1.49)
|
1,081
|
0.64
|
0.64
|
1.35
|
62
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
25.94
|
0.27
|
(4.26)
|
(3.99)
|
(0.27)
|
(0.59)
|
(0.86)
|
21.09
|
(15.45)
|
158,063
|
0.57
|
0.57
|
1.22
|
45
|
|
Year
ended 12/31/21 |
31.92
|
0.25
|
1.17
|
1.42
|
(0.34)
|
(7.06)
|
(7.40)
|
25.94
|
5.06
|
51,316
|
0.52
|
0.52
|
0.79
|
61
|
|
Year
ended 12/31/20 |
24.65
|
0.33
|
10.47
|
10.80
|
(0.47)
|
(3.06)
|
(3.53)
|
31.92
|
44.86
|
55,585
|
0.56
|
0.56
|
1.19
|
65
|
|
Year
ended 12/31/19 |
21.43
|
0.36
|
4.29
|
4.65
|
(0.45)
|
(0.98)
|
(1.43)
|
24.65
|
21.82
|
42,492
|
0.56
|
0.56
|
1.47
|
57
|
|
Year
ended 12/31/18 |
24.43
|
0.36
|
(0.62)
|
(0.26)
|
(0.66)
|
(2.08)
|
(2.74)
|
21.43
|
(1.41)
|
47,908
|
0.56
|
0.56
|
1.43
|
62
|
|
| ||||||||||||||
|
(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)
|
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 0.23% and 0.96% for Class A and Class C 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 0.24% and 1.00% for Class A and Class C shares,
respectively.
|
|
(f)
|
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 0.98% for Class C shares. |
|
(g)
|
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 0.97% for Class C shares. |
10 Invesco
Convertible Securities Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Convertible Securities Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
MS-CSEC-PRO-1
|
Prospectus
April
28,
2023
Class:
A (GTNDX), C (GNDCX),
R (GTNRX), Y (GTNYX),
R5 (GNDIX), R6 (GNDSX)
Invesco
Income Advantage International Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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A-27
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Back
Cover |
Invesco
Income Advantage International Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is income and long-term growth of capital.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
|
Class:
|
A
|
C
|
R
|
Y
|
R5
|
R6
|
|
Management
Fees |
0.75%
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
|
| ||||||
|
Distribution
and/or Service (12b-1) Fees |
0.25
|
1.00
|
0.50
|
None
|
None
|
None
|
|
| ||||||
|
Other
Expenses |
0.59
|
0.59
|
0.59
|
0.59
|
0.48
|
0.43
|
|
| ||||||
|
Acquired
Fund Fees and Expenses |
0.03
|
0.03
|
0.03
|
0.03
|
0.03
|
0.03
|
|
| ||||||
|
Total
Annual Fund Operating Expenses |
1.62
|
2.37
|
1.87
|
1.37
|
1.26
|
1.21
|
|
| ||||||
|
Fee
Waiver and/or Expense Reimbursement2
|
0.36
|
0.36
|
0.36
|
0.36
|
0.25
|
0.20
|
|
| ||||||
|
Total
Annual Fund Operating Expenses After Fee
Waiver
and/or Expense Reimbursement |
1.26
|
2.01
|
1.51
|
1.01
|
1.01
|
1.01
|
|
| ||||||
1
A contingent deferred sales charge may
apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
2
Invesco Advisers, Inc. (Invesco or the
Adviser) has contractually agreed 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 Acquired Fund Fees and Expenses and certain items discussed
in the SAI) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.23%, 1.98%, 1.48%, 0.98%, 0.98% and 0.98%, respectively,
of the Fund's average daily net assets (the “expense limits”). Unless Invesco continues the fee waiver agreement, it will
terminate on April
30, 2024. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits without
approval of the Board of Trustees.
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain equal to the Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement in the first year and the Total Annual Fund Operating Expenses thereafter.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 97%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund seeks to achieve its investment objective by investing in a diversified portfolio of equity securities and equity-linked notes designed
to generate high income while providing some downside protection in the event of broad equity market downturns and also providing equity
market upside participation.
The
Fund invests primarily in equity securities, including common and preferred
stock, equity-linked notes (ELNs) and depositary receipts of U.S. and foreign issuers. A depositary receipt is generally issued by a bank
or other financial institution and represents an ownership interest in the common stock or other equity securities of a foreign company.
ELNs
are hybrid derivative-type instruments that are specially designed to
combine the characteristics of investing in one or more underlying equity securities, or an index of equity securities and a related equity
derivative, such as a put or call option, in a single note form (typically senior, unsecured debt) issued by financial institutions. The
Fund will invest in ELNs that reference either a broad-based equity security index or an exchange-traded fund that passively tracks such
an index. The Fund’s portfolio of ELNs will be constituted by positions in short-term ELNs issued by a diversified group of U.S.
and international financial institutions and cash and cash equivalents. The Fund’s investment in ELNs can represent up to 50% of
the Fund’s net assets, but is expected to be in the range of 15% to 50%. The Fund’s investment in ELNs will be adjusted periodically
to achieve the Fund’s desired yield.
The
Fund may invest a significant amount of its assets in foreign securities.
Under normal circumstances, the Fund will provide exposure to investments that are economically tied to at least three different countries
outside of the U.S. The Fund may also invest up to 50% of its net assets in securities of issuers located in emerging markets countries,
i.e., those that are generally in the early stages of their industrial cycles. The Fund’s exposure to the financials sector may
at times be significant.
1 Invesco
Income Advantage International Fund
The
Fund can invest in derivative instruments including futures contracts
and forward foreign currency contracts. The Fund can use futures contracts, including equity index futures, to gain exposure to the broad
market in connection with managing cash balances. The Fund also can use futures contracts, including currency futures and equity index
futures, to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated. The Fund can hold
long and short positions in equity index futures to hedge against adverse movements in the equity markets. A long position involves the
Fund buying a derivative with the anticipation of a price increase of the underlying asset, and a short position involves the Fund writing
(selling) a derivative with the anticipation of a price decrease of the underlying asset.
The
Fund can use forward foreign currency contracts to hedge against adverse
movements in the foreign currencies in which portfolio securities are denominated.
The
portfolio managers aim to construct a diversified portfolio that generates
high income while providing downside protection against broad equity market drawdowns and providing equity market upside participation.
The equity portion of the Fund's portfolio will be constructed using quantitative models that generate broad-based large-cap equity market
indices developed by Invesco's affiliate, Invesco Indexing LLC, or third-party index providers (the “Equity portfolio”). The
indices will be constructed based on factors to which the portfolio managers seek to gain market exposure, including but not limited to,
momentum, value, quality and low volatility. The factors and their relative weighting will change over time based on the portfolio managers'
views on the relative strength of each factor and market conditions. The equity portion of the portfolio will therefore change over time.
The
portfolio managers also seek to construct a portion of the Fund’s portfolio
in high-income, short-term ELNs with a focus on downside protection (the “ELN portfolio”). The portfolio managers seek to
enhance portfolio diversification by staggering the maturity dates of the ELNs to create more consistent returns over time. The portion
of the ELN portfolio maintained in cash and cash equivalents is aimed at providing additional downside protection by limiting the ELN
portfolio’s exposure to broad equity market risk. The portion of the Fund’s assets allocated between the Equity portfolio
and ELN portfolio will be actively adjusted on a periodic basis to balance yield targets, equity participation with less volatility, and
downside protection.
The
Fund can hold a portion of its assets in cash or cash equivalents,
including treasury bills and money market funds, in an effort to maintain high liquidity and a downside buffer. From time to time, the
Fund’s holdings in cash or cash equivalents may be significant.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing. An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. The principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism,
economic crisis or adverse investor sentiment generally. During
a general downturn in the financial markets, multiple asset classes may
decline
in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.
Investing
in Stocks Risk.
The value of the Fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant short-term
volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have unexpected
negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets may move
in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To
the extent that securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth
or value stocks, or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting
the market for those types of securities.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many
other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Equity
Linked Notes Risk.
ELNs may not perform as anticipated and could cause the Fund to realize significant losses including its entire principal investment.
Other risks include those of the underlying securities, as well as counterparty risk, liquidity risk and imperfect correlation between
ELNs and the underlying securities.
Foreign
Securities Risk.
The Fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies,
difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible
seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a
certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign companies generally
may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing and accounting
controls, and may therefore be more susceptible to fraud or corruption. There may be less public information available about foreign companies
than U.S. companies, making it difficult to evaluate those foreign companies. Unless the Fund has hedged its foreign currency exposure,
foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities
denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value.
Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than
2 Invesco
Income Advantage International Fund
companies
in more developed countries. As a result, information, including financial information, about such companies may be less available and
reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation
in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy,
confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies,
restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information
needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization
programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may
be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Depositary
Receipts Risk. Investing in depositary receipts involves the same
risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation
to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of
such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign
issuer.
Geographic
Focus Risk.
The Fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single country or
a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant negative
impact on the Fund’s investment performance.
European
Investment Risk. The
Economic and Monetary Union (the “EMU”) of the European Union (the “EU”) requires compliance with restrictions
on inflation rates, deficits, interest rates, debt levels and fiscal and monetary controls, each of which may significantly affect every
country in Europe. Decreasing imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of
the euro, the default or threat of default by an EU member country on its sovereign debt, and recessions in an EU member country may have
significant adverse effects on
the economies of EU member countries. Responses to financial problems by EU countries may not produce the desired results, may limit future
growth and economic recovery, or may result in social unrest or have other unintended consequences. Further defaults or restructurings
by governments and other entities of their debt could have additional adverse effects on economies, financial markets, and asset valuations
around the world. A number of countries in Eastern Europe remain relatively undeveloped and can be particularly sensitive to political
and economic developments. Separately, the EU faces issues involving its membership, structure, procedures and policies. The exit of one
or more member states from the EU, such as the recent departure of the United Kingdom (known as “Brexit”), would place its
currency and banking system in jeopardy. The exit by the United Kingdom or other member states will likely result in increased volatility,
illiquidity and potentially lower economic growth in the affected markets, which will adversely affect the Fund’s investments.
Sector
Focus Risk. The Fund may from time to time have a significant
amount of its assets invested in one market sector or group of related industries. In this event, the Fund’s performance will depend
to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose
significant value if conditions adversely affect that sector or group of industries.
Financial
Services Sector Risk.
The Fund may be susceptible to adverse economic or regulatory occurrences affecting the financial services sector. Financial services
companies,
including financial institutions, are subject to extensive government regulation and are disproportionately affected by unstable interest
rates, volatility in the financial markets, changes in domestic and foreign monetary policy, and changes in industry regulations, each
of which could adversely affect the profitability of such
companies.
Financial services companies may also have concentrated portfolios, which makes them especially vulnerable to unstable economic conditions.
Short
Position Risk.
Because the Fund’s potential loss on a short position arises from increases in the value of the asset sold short, the Fund will
incur a loss on a short position, which is theoretically unlimited, if the price of the asset sold short increases from the short sale
price. The counterparty to a short position or other market factors may prevent the Fund from closing out a short position at a desirable
time or price and may reduce or eliminate any gain or result in a loss. In a rising market, the Fund’s short positions will cause
the Fund to underperform the overall market and its peers that do not engage in shorting. If the Fund holds both long and short positions,
and both positions decline simultaneously, the short positions will not provide any buffer (hedge) from declines in value of the Fund’s
long positions. Certain types of short positions involve leverage, which may exaggerate any losses, potentially more than the actual cost
of the investment, and will increase the volatility of the Fund’s returns.
Quantitative
Models Risk. Quantitative models are based upon many factors that
measure individual securities relative to each other. Quantitative models may be highly reliant on the gathering, cleaning, culling and
analysis of large amounts of data from third parties and other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use of the quantitative models. The factors used in models
may not identify securities that perform well in the future, and the securities selected may perform differently from the market as a
whole or from their expected performance.
Cash/Cash
Equivalents Risk.
In rising markets, holding cash or cash equivalents will negatively affect the Fund’s performance relative to its benchmark.
Money
Market Fund Risk.
Although money market funds generally seek to preserve the value
of an investment at $1.00 per share, the Fund may lose money by investing in money market funds. A
money market fund's sponsor has no legal obligation to provide financial support to the money market fund. The credit
quality of a money market fund's holdings can change rapidly in certain markets, and the default of a single holding could have an adverse
impact on the money market fund's share price. A money market fund's share price can also be negatively affected during periods of high
redemption pressures, illiquid markets and/or significant market volatility.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and the Fund may be unable to dispose of the securities at a desirable time or price.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise
perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic
exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result
in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the
underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also
be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable
time or
3 Invesco
Income Advantage International Fund
price.
This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions.
Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s
ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for
hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse
market conditions.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management
of the Fund and, therefore, the ability of the Fund to achieve its investment objective.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The bar chart shows changes in the performance
of the Fund from year to year as of December 31. For periods prior to July 15, 2021, performance shown is that of the Fund using its previous
investment strategy. Therefore, the past performance shown
for periods prior to July 15, 2021 may have differed had the Fund’s current investment strategy been in effect. The
performance table compares the Fund's performance to that of a broad-based/style-specific securities market benchmark and a peer group
benchmark comprised of funds with investment objectives and strategies similar to those of the Fund (in that order).
The Fund's past performance (before and after taxes) is not necessarily
an indication of its future performance.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund's website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
12.70%
|
|
Worst
Quarter |
March
31, 2020 |
-21.90%
|
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
9/15/1997
|
-17.01%
|
-1.04%
|
3.14%
|
|
Return
After Taxes on Distributions |
|
-19.11
|
-1.82
|
2.29
|
|
Return
After Taxes on Distributions and Sale of
Fund
Shares |
|
-9.71
|
-0.82
|
2.36
|
|
| ||||
|
Class
C |
1/2/1998
|
-13.54
|
-0.65
|
3.11
|
|
| ||||
|
Class
R |
10/31/2005
|
-12.28
|
-0.14
|
3.47
|
|
| ||||
|
Class
Y |
10/3/2008
|
-11.90
|
0.35
|
3.99
|
|
| ||||
|
Class
R5 |
4/30/2004
|
-11.87
|
0.46
|
4.14
|
|
| ||||
|
Class
R6 |
4/4/2017
|
-11.89
|
0.45
|
3.941
|
|
| ||||
|
MSCI
ACWI ex-USA®
Index (Net) (reflects
reinvested
dividends net of withholding taxes,
but
reflects no deduction for fees, expenses or
other
taxes) |
|
-16.00
|
0.88
|
3.80
|
|
| ||||
|
Lipper
Global Equity Income Funds Index |
|
-10.06
|
3.77
|
6.15
|
|
| ||||
1
Performance shown prior to the inception
date is that of the Fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although invested in
the same portfolio of securities, Class R6 shares' returns of the Fund will be different from Class A shares' returns of the Fund's as
they have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Scott
Wolle, CFA |
Portfolio
Manager (lead) |
2021
|
|
| ||
|
Mark
Ahnrud, CFA |
Portfolio
Manager |
2021
|
|
| ||
|
John
Burrello, CFA |
Portfolio
Manager |
2021
|
|
| ||
|
Chris
Devine, CFA |
Portfolio
Manager |
2021
|
|
| ||
|
Scott
Hixon, CFA |
Portfolio
Manager |
2021
|
|
| ||
|
Christian
Ulrich, CFA |
Portfolio
Manager |
2021
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and
4 Invesco
Income Advantage International Fund
Benefit
Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is income and long-term growth of capital. The Fund’s investment objective may be changed by the
Board of Trustees (the Board) without shareholder approval.
The
Fund seeks to achieve its investment objective by investing in a diversified
portfolio of equity securities and equity-linked notes designed to generate high income while providing some downside protection in the
event of broad equity market downturns and also providing equity market upside participation.
The
Fund invests primarily in equity securities, including common stock and
preferred stock, ELNs and depositary receipts of U.S. and foreign issuers. A depositary receipt is generally issued by a bank or other
financial institution and represents an ownership interest in the common stock or other equity securities of a foreign company. The Fund
may also invest in REITs, which are trusts that sell equity and/or debt securities to investors and use the proceeds to invest in real
estate or interests therein.
ELNs
are hybrid derivative-type instruments that are specially designed to
combine the characteristics of investing in one or more underlying equity securities, or an index of equity securities and a related equity
derivative, such as a put or call option, in a single note form (typically senior, unsecured debt) issued by financial institutions. The
Fund will invest in ELNs that reference either a broad-based equity security index or an exchange-traded fund that passively tracks such
an index. The Fund’s portfolio of ELNs will be constituted by positions in short-term ELNs issued by a diversified group of U.S.
and international financial institutions and cash and cash equivalents.
The
Fund’s investment in ELNs can represent up to 50% of the Fund’s net assets, but is expected to be in the range of 15% to 50%.
The Fund’s investment in ELNs will be adjusted periodically to achieve the Fund’s desired yield.
The
Fund may invest a significant amount of its assets in foreign securities.
Foreign securities are those of issuers that are organized under the laws of a foreign country or that have a substantial portion of their
operations or assets in a foreign country or countries, or that derive a substantial portion of their revenue or profits from businesses,
investments or sales outside of the United States, or whose “country of risk” is a foreign country as determined by a third-party
service provider. Under normal circumstances, the Fund will provide exposure to investments that are economically tied to at least three
different countries outside of the U.S. The Fund may also invest up to 50% of its net assets in securities of issuers located in emerging
markets countries, i.e., those that are generally in the early stages of their industrial cycles. The Schedule of Investments included
in the Fund’s annual and semi-annual reports identifies the countries in which the Fund had invested, as of the date of the reports.
The Fund’s exposure to the financials sector may at times be significant.
The
Fund can invest in derivative instruments including futures contracts
and forward foreign currency contracts. A futures contract is a standardized agreement between two parties to buy or sell a specified
quantity of an underlying asset at a specified price at a specified future time, with both the purchaser and the seller equally obligated
to complete the transaction at that future time. The value of the futures contract tends to increase and decrease in tandem with the value
of the underlying asset. Depending on the terms of the particular contract, futures contracts are settled by purchasing an offsetting
contract, physically delivering the underlying asset on the settlement date or paying a cash settlement amount on the settlement date.
The futures contracts the Fund will enter into are traded (either domestically or internationally) on futures exchanges or certain exempt
markets including exempt boards of trade and electronic trading facilities. The Fund can also use futures contracts, including equity
index futures, to gain exposure to the broad market in connection with managing cash balances. The Fund also can use futures contracts,
including currency futures, to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
The Fund can hold long and short positions in equity index futures to hedge against adverse movements in the equity markets. A long position
involves the Fund buying a derivative with the anticipation of a price increase of the underlying asset, and a short position involves
the Fund writing (selling) a derivative with the anticipation of a price decrease of the underlying asset.
A
forward foreign currency contract is an agreement between parties to exchange
a specified amount of currency at a specified future time at a specified rate. The Fund can use forward foreign currency contracts to
hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
The
portfolio managers aim to construct a diversified portfolio that generates
high income while providing downside protection against broad equity market drawdowns and providing equity market upside participation.
The equity portion of the Fund's portfolio will be constructed using quantitative models that generate broad-based large-cap equity market
indices developed by Invesco's affiliate, Invesco Indexing LLC, or third-party index providers (the “Equity portfolio”). The
indices will be constructed based on factors to which the portfolio managers seek to gain market exposure, including but not limited to,
momentum, value, quality and low volatility. The factors and their relative weighting will change over time based on the portfolio managers'
views on the relative strength of each factor and market conditions. The equity portion of the portfolio will therefore change over time.
The
portfolio managers also seek to construct a portion of the Fund’s portfolio
in high-income, short-term ELNs with a focus on downside protection (the “ELN portfolio”). The portfolio managers seek to
enhance portfolio diversification by staggering the maturity dates of the ELNs to
5 Invesco
Income Advantage International Fund
create
more consistent returns over time. The portion of the ELN portfolio maintained in cash and cash equivalents is aimed at providing additional
downside protection by limiting the ELN portfolio’s exposure to broad equity market risk. The portion of the Fund’s assets
allocated between the Equity portfolio and ELN portfolio will be actively adjusted on a periodic basis to balance yield targets, equity
participation with less volatility, and downside protection.
The
Fund can hold a portion of its assets in cash or cash equivalents,
including treasury bills and money market funds, in an effort to maintain high liquidity and a downside buffer. From time to time, the
Fund's holdings in cash or cash equivalents may be significant.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
the Fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector,
such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters, widespread
disease or other public health issues, war, military conflict, acts of terrorism,
economic crisis or other events may have a significant impact
on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances may also
impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in the financial
markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held
by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO)
member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine (and the potential
for further sanctions in response to Russia’s continued military activity)
may escalate.
These and other corresponding events, have had, and could continue
to have, severe negative effects on regional and global economic and financial markets, including increased volatility, reduced liquidity,
and overall uncertainty. The negative impacts may be particularly acute in certain sectors including, but not limited to, energy and financials.
Russia may take additional countermeasures or retaliatory actions (including cyberattacks), which could exacerbate negative consequences
on global financial markets. The duration of the conflict and corresponding sanctions and related events cannot be predicted. The foregoing
may result in a negative impact on Fund performance and
the
value of an investment in the Fund, even beyond any direct investment exposure the Fund may have to Russian issuers or the adjoining geographic
regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the issuer in
a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital
structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred
securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s
financial condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Equity
Linked Notes Risk.
Investments in ELNs are susceptible to the risks of their underlying securities, which could include management risk, market risk and,
as applicable, foreign securities and currency risks. ELNs are also subject to certain debt securities risks, such as interest rate and
credit risks. Should the prices of the underlying securities move in an unexpected manner, the Fund may not achieve the anticipated benefits
of an
6 Invesco
Income Advantage International Fund
investment
in an ELN, and may realize losses, which could be significant and could include the Fund's entire principal investment. An ELN investment
is also subject to counterparty risk, which is the risk that the issuer of the ELN will default or become bankrupt and the Fund may not
be repaid the principal amount of, or income from, its investment. ELNs may also be less liquid than more traditional investments and
the Fund may be unable to sell ELNs at a desirable time or price. In addition, the price of ELNs may not correlate with the underlying
securities or a fixed income investment.
Foreign
Securities Risk.
The value of the Fund's foreign investments may be adversely affected by political and social instability in the home countries of the
issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental
restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S. companies,
including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud or corruption.
Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies making it
more difficult for the Adviser to evaluate those companies. The laws of certain countries may put limits on the Fund’s ability to
recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security, or any of their agents, goes bankrupt.
Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to the size of the market or other factors.
Changes in political and economic factors in one country or region could adversely affect conditions in another country or region. Investments
in foreign securities may also expose the Fund to time-zone arbitrage risk. At times, the Fund may emphasize investments in a particular
country or region and may be subject to greater risks from adverse events that occur in that country or region. Unless the Fund has hedged
its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may
cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign
currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies,
if used, are not always successful. For instance, currency forward contracts, if used by the Fund, could reduce performance if there are
unanticipated changes in currency exchange rates.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than
companies
in more developed countries and, as a result, the nature and quality of such information may vary. Information about such companies may
be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets may be limited which
can impede the Fund’s ability to evaluate such companies. In addition, certain emerging market countries may impose material limitations
on Public Company Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities, which can hinder the PCAOB’s
ability to engage in independent oversight or inspection of accounting firms located in or operating in certain emerging markets.
There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market countries
may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries have been engaged in programs to sell all or part of their interests
in government-owned or controlled enterprises. However, in certain emerging market countries, the ability of foreign entities to participate
in privatization programs may be limited by local law. There can be no assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Depositary
Receipts Risk.
Depositary receipts involve many of the same risks as those associated with direct investment in foreign securities. In addition, the
underlying issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, are under no obligation
to distribute shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to
the deposited securities. The Fund may therefore receive less timely information or have less control than if it invested directly in
the foreign issuer.
Geographic
Focus Risk.
The Fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single country or
a limited number of countries. If the Fund focuses its investments in this manner, adverse economic, political or social conditions in
those countries may have a significant negative impact on the Fund’s investment performance. This risk is heightened if the Fund
focuses its investments in emerging market countries or developed countries prone to periods of instability. The Schedule of Investments
included in the Fund’s annual and semi-annual reports identifies the countries in which the Fund had invested and the level of investment,
as of the date of the reports.
European
Investment Risk. Europe
includes both developed and emerging markets. Most countries in Western Europe, and a number of countries in Eastern Europe, are members
of the EU and the EMU. The EMU, which is authorized to direct monetary policies, including policies related to money supply and interest
rates for the euro, requires compliance by
7 Invesco
Income Advantage International Fund
member
states with restrictions on inflation rates, deficits, interest rates, debt levels and other tight fiscal and monetary controls, each
of which may significantly affect every country in Europe. Decreasing imports or exports, changes in governmental or EU regulations on
trade, changes in the exchange rate of the euro (the common currency of certain EU countries), the default or threat of default by an
EU member country on its sovereign debt, and/or an economic recession in an EU member country may have significant adverse effects on
the economies of EU member countries and the EU as a whole. In recent years, the European financial markets have experienced volatility
and adverse trends due to concerns about rising government debt levels of several European countries, including Greece, Spain, Ireland,
Italy and Portugal. These events have adversely affected the exchange rate of the euro and may continue to significantly affect every
country in Europe, including EU member countries that do not use the euro and non-EU member countries. Responses to the financial problems
by European governments, central banks, and others, including austerity measures and reforms, may not produce the desired results, may
limit future growth and economic recovery, or may result in social unrest or have other unintended consequences. Further defaults or restructurings
by governments and other entities of their debt could have additional adverse effects on economies, financial markets, and asset valuations
around the world. The markets in Eastern Europe remain relatively undeveloped and can be particularly sensitive to political and economic
developments.
The
EU faces issues involving its membership, structure, procedures
and policies. On January 31, 2020, the United Kingdom withdrew from the EU. The country’s departure,
referred to as “Brexit”, sparked depreciation in the
value of the British pound, short term declines in the stock markets and heightened risk of continued economic volatility worldwide. Although
the long-term effects of Brexit are difficult to gauge and cannot be fully known, they could have wide ranging implications for the United
Kingdom’s economy, including: possible inflation or recession, continued depreciation of the pound, or disruption to Britain’s
trading arrangements with the rest of Europe. The United Kingdom is one of Europe’s largest economies; its departure from the EU
also may negatively impact the EU and Europe as a whole, such as by causing volatility within the union, triggering prolonged economic
downturns in certain European countries or sparking additional member states to contemplate departing the EU (thereby perpetuating political
instability in the region). An exit by other member states will likely result in increased volatility, illiquidity and potentially lower
economic growth in the affected markets, which will adversely affect the Fund’s investments.
Sector
Focus Risk. The Fund may from time to time have a significant
amount of its assets invested in one market sector or group of related industries. The prices of stocks of issuers in a sector or group
of industries may go up and down in response to changes in economic conditions, government regulations,
availability of basic resources or supplies,
or other events that affect that industry or sector more than
others. In this event, the Fund’s performance will depend to a greater extent on the overall condition of the
sector or
group of industries and there is increased risk that the Fund
will lose significant
value if
conditions adversely affect that sector
or group of industries. Information about the Fund’s investment
in a market sector or group of industries is available in its annual and semi-annual reports to shareholders
and in its reports on Form N-PORT filed with the SEC.
Financial
Services Sector Risk.
The Fund may be susceptible to adverse economic or regulatory occurrences affecting the financial services sector. Financial services
companies,
including financial institutions, are subject to extensive government regulation and, as a result, their profitability may be affected
by new regulations or regulatory interpretations. Unstable interest rates, volatility in the financial markets, changes in domestic and
foreign monetary policy, and changes in industry regulations, can have a disproportionate effect on companies in the financial services
sector which could adversely affect the profitability of such companies. Financial services companies whose securities the Fund may purchase
may themselves have concentrated portfolios, which makes them especially vulnerable to unstable economic conditions.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Real estate companies, including REITs or similar structures, tend to be small- and mid-cap
companies and their shares may be more volatile and less liquid than larger companies. The value of investments in real estate related
companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial covenants
related thereto, whether the company carries adequate insurance and environmental factors. If a real estate related company defaults on
certain types of debt obligations held by the Fund, the Fund may acquire real estate directly, which involves additional risks such as
environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Short
Position Risk.
The Fund will incur a loss on a short position if the price of the asset sold short increases from the short sale price. Because the Fund’s
potential loss on a short position arises from increases in the value of the asset sold short, the extent of such loss, like the price
of the asset sold short, is theoretically unlimited. Short sales are speculative transactions and involve greater reliance on the Adviser’s
ability to accurately anticipate the future value of an asset or markets in general. Any gain on a short position is decreased, and any
loss is increased, by the amount of any payment, dividend, interest or other transaction costs that the Fund may be required to pay with
respect to the asset sold short. The counterparty to a short position or market factors, such as a sharp increase in prices, may prevent
the Fund from closing out a short position at a desirable time or price and may reduce or eliminate any gain or result in a loss. In a
rising market, the Fund’s short positions will cause the Fund to underperform the overall market and its peers that do not engage
in shorting. If the Fund holds both long and short positions, both positions may decline simultaneously, in which case the short positions
will not provide any buffer (hedge) from declines in value of the Fund’s long positions. Certain types of short positions involve
leverage, which may exaggerate any losses, potentially more than the actual cost of the investment, and will increase the volatility of
the Fund’s returns.
Quantitative
Models Risk. Quantitative models are based upon many factors that
measure individual securities relative to each other. Quantitative models may be highly reliant on the gathering, cleaning, culling and
analysis of large amounts of data from third parties and other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use of the quantitative models. The factors used in models
may not identify securities that perform well in the future, and the securities selected may perform differently from the market as a
whole or from their expected performance.
Cash/Cash
Equivalents Risk.
To the extent the Fund holds cash or cash equivalents rather than securities or other instruments in which it primarily invests, the Fund
risks losing opportunities to participate in market appreciation and may experience potentially lower returns than the Fund’s benchmark
or other funds that remain fully invested.
Money
Market Fund Risk.
Although money market funds generally seek to preserve the value of an investment at $1.00 per share, the Fund may lose money by investing
in money market funds. A money market fund's sponsor has no legal obligation to provide financial support to the money market fund. The
credit quality of a money market fund's holdings can change rapidly in certain markets, and the default of a single holding could have
an adverse impact on the money market fund's share price. A money market fund's share price can also be negatively affected during periods
of high redemption pressures, illiquid markets and/or significant market volatility. To the extent the Fund holds cash or cash equivalents
rather than securities in which it primarily invests or uses to manage risk, the Fund may not achieve its investment objectives and may
underperform the Fund’s benchmark or other funds that remain fully invested.
8 Invesco
Income Advantage International Fund
Rule
144A Securities and Other Exempt Securities Risk. The Fund may
invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption from registration
under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically may be resold
only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers, or in limited
quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration. Although
such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company Act of 1940,
as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities at a particular
time, the Fund may have difficulty selling such securities at a desirable time or price. As a result, the Fund’s investment in such
securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities may require their qualified institutional
buyers (such as the Fund) to keep certain offering information confidential, which could adversely affect the ability of the Fund to sell
such securities.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between the Fund and a counterparty. When the Fund is owed money on an OTC derivative, the Fund is dependent on the counterparty
to pay or, in some cases, deliver the underlying asset, unless the Fund can otherwise sell its derivative contract to a third party prior
to its expiration. Many counterparties are financial institutions such as banks and broker-dealers and their creditworthiness (and ability
to pay or perform) may be negatively impacted by factors affecting financial institutions generally. In addition, in the event that a
counterparty becomes bankrupt or insolvent, the Fund’s ability to recover the collateral that the Fund has on deposit with the counterparty
could be delayed or impaired. For derivatives traded on a centralized exchange, the Fund generally is dependent upon the solvency of the
relevant exchange clearing house (which acts as a guarantor for each contractual obligation under such derivatives) for payment on derivative
instruments for which the Fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a
loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless of the size of the Fund’s initial investment. Leverage may therefore
make the Fund’s returns more volatile and increase the risk of loss. In certain market conditions, losses on derivative instruments
can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions becoming a larger
percentage of the Fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional investments and the Fund
may be unable to sell or exit its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be
most
in need of liquidating its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market
illiquidity, the Fund may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and
its ability to meet redemption requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid
assets must be used as margin. Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to
maturity and take or make delivery of the underlying asset that the Adviser would otherwise avoid.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of the Fund’s taxable income or gains, and may limit or prevent the Fund from using certain types of
derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to implement or require
the Fund to change its investment strategy. Derivatives strategies may not always be successful. For example, to the extent that
the Fund uses derivatives for hedging or to gain or limit exposure to a particular market or market segment, there may be imperfect correlation
between the value of the derivative instrument and the value of the instrument being hedged or the relevant market or market segment,
in which case the Fund may not realize the intended benefits. There is also the risk that during adverse market conditions, an instrument
which would usually operate as a hedge provides no hedging benefits at all. The Fund’s use of derivatives may be limited by the
requirements for taxation of the Fund as a regulated investment company.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. There can be no guarantee that the Adviser’s investment techniques or investment
decisions will produce the desired results. Additionally, legislative, regulatory, or tax developments may affect the investments or investment
strategies available to the Adviser in connection with managing the Fund, which may also adversely affect the ability of the Fund to achieve
its investment objective.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other investment portfolios
that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance of the Fund’s day-to-day
management. The Adviser is located at 1331 Spring Street, N.W., Suite
9 Invesco
Income Advantage International Fund
2500,
Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
In
addition, Invesco has entered into one or more Sub-Advisory Agreements
with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time
to provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
During
the fiscal year ended December 31, 2022, the Adviser received compensation of 0.38% of the Fund's average daily net assets, after fee
waiver and/or expense reimbursement, if any.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Scott
Wolle, CFA (lead manager), Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or
its affiliates since 1999.
◾
Mark
Ahnrud, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 2000.
◾
John
Burrello, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 2012.
◾
Chris
Devine, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 1998.
◾
Scott
Hixon, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 1994.
◾
Christian
Ulrich, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 2000.
A
lead or co-lead manager generally has final authority over all
aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio construction
techniques, portfolio risk assessment, and the management of daily cash flows in accordance
with
portfolio holdings. The degree to which a lead or co-lead manager may perform these functions, and the nature of these functions, may
change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, monthly.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
10 Invesco
Income Advantage International Fund
The
financial highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of
the Fund or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Return
of
capital
|
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
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | ||||||||||||||
|
Year
ended 12/31/22 |
$14.56
|
$0.92
|
$(2.68)
|
$(1.76)
|
$(0.91)
|
$—
|
$(0.91)
|
$11.89
|
(12.16)%
|
$50,826
|
1.21%
|
1.59%
|
7.25%
|
97%
|
|
Year
ended 12/31/21 |
13.02
|
0.48
|
1.45
|
1.93
|
(0.39)
|
—
|
(0.39)
|
14.56
|
14.84
|
64,112
|
1.43
|
1.55
|
3.33
|
115
|
|
Year
ended 12/31/20 |
14.04
|
0.19
|
(0.95)
|
(0.76)
|
(0.21)
|
(0.05)
|
(0.26)
|
13.02
|
(5.16)
|
62,139
|
1.55
|
1.55
|
1.54
|
71
|
|
Year
ended 12/31/19 |
12.23
|
0.29
|
1.81
|
2.10
|
(0.29)
|
—
|
(0.29)
|
14.04
|
17.26
|
74,917
|
1.59
|
1.59
|
2.19
|
103
|
|
Year
ended 12/31/18 |
13.89
|
0.28(d)
|
(1.70)
|
(1.42)
|
(0.24)
|
—
|
(0.24)
|
12.23
|
(10.39)
|
70,104
|
1.59
|
1.59
|
2.07(d)
|
111
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
13.76
|
0.78
|
(2.52)
|
(1.74)
|
(0.77)
|
—
|
(0.77)
|
11.25
|
(12.72)
|
939
|
1.96
|
2.34
|
6.50
|
97
|
|
Year
ended 12/31/21 |
12.32
|
0.35
|
1.36
|
1.71
|
(0.27)
|
—
|
(0.27)
|
13.76
|
13.86
|
1,176
|
2.18
|
2.30
|
2.58
|
115
|
|
Year
ended 12/31/20 |
13.27
|
0.09
|
(0.88)
|
(0.79)
|
(0.13)
|
(0.03)
|
(0.16)
|
12.32
|
(5.82)
|
1,302
|
2.30
|
2.30
|
0.79
|
71
|
|
Year
ended 12/31/19 |
11.56
|
0.18
|
1.71
|
1.89
|
(0.18)
|
—
|
(0.18)
|
13.27
|
16.40
|
2,781
|
2.34
|
2.34
|
1.44
|
103
|
|
Year
ended 12/31/18 |
13.13
|
0.17(d)
|
(1.61)
|
(1.44)
|
(0.13)
|
—
|
(0.13)
|
11.56
|
(11.08)
|
6,782
|
2.34
|
2.34
|
1.32(d)
|
111
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 12/31/22 |
14.58
|
0.88
|
(2.66)
|
(1.78)
|
(0.88)
|
—
|
(0.88)
|
11.92
|
(12.28)
|
1,595
|
1.46
|
1.84
|
7.00
|
97
|
|
Year
ended 12/31/21 |
13.04
|
0.45
|
1.44
|
1.89
|
(0.35)
|
—
|
(0.35)
|
14.58
|
14.55
|
1,655
|
1.68
|
1.80
|
3.08
|
115
|
|
Year
ended 12/31/20 |
14.06
|
0.16
|
(0.95)
|
(0.79)
|
(0.18)
|
(0.05)
|
(0.23)
|
13.04
|
(5.41)
|
1,307
|
1.80
|
1.80
|
1.29
|
71
|
|
Year
ended 12/31/19 |
12.25
|
0.26
|
1.81
|
2.07
|
(0.26)
|
—
|
(0.26)
|
14.06
|
16.95
|
1,818
|
1.84
|
1.84
|
1.94
|
103
|
|
Year
ended 12/31/18 |
13.91
|
0.25(d)
|
(1.71)
|
(1.46)
|
(0.20)
|
—
|
(0.20)
|
12.25
|
(10.60)
|
1,253
|
1.84
|
1.84
|
1.82(d)
|
111
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
14.59
|
0.94
|
(2.66)
|
(1.72)
|
(0.95)
|
—
|
(0.95)
|
11.92
|
(11.90)
|
3,679
|
0.96
|
1.34
|
7.50
|
97
|
|
Year
ended 12/31/21 |
13.05
|
0.52
|
1.45
|
1.97
|
(0.43)
|
—
|
(0.43)
|
14.59
|
15.10
|
2,335
|
1.18
|
1.30
|
3.58
|
115
|
|
Year
ended 12/31/20 |
14.07
|
0.23
|
(0.96)
|
(0.73)
|
(0.23)
|
(0.06)
|
(0.29)
|
13.05
|
(4.89)
|
2,001
|
1.30
|
1.30
|
1.79
|
71
|
|
Year
ended 12/31/19 |
12.26
|
0.33
|
1.80
|
2.13
|
(0.32)
|
—
|
(0.32)
|
14.07
|
17.52
|
2,910
|
1.34
|
1.34
|
2.44
|
103
|
|
Year
ended 12/31/18 |
13.93
|
0.32(d)
|
(1.72)
|
(1.40)
|
(0.27)
|
—
|
(0.27)
|
12.26
|
(10.21)
|
2,168
|
1.34
|
1.34
|
2.32(d)
|
111
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
14.72
|
0.96
|
(2.69)
|
(1.73)
|
(0.96)
|
—
|
(0.96)
|
12.03
|
(11.87)
|
514
|
0.96
|
1.23
|
7.50
|
97
|
|
Year
ended 12/31/21 |
13.17
|
0.53
|
1.46
|
1.99
|
(0.44)
|
—
|
(0.44)
|
14.72
|
15.15
|
679
|
1.10
|
1.16
|
3.66
|
115
|
|
Year
ended 12/31/20 |
14.20
|
0.25
|
(0.97)
|
(0.72)
|
(0.25)
|
(0.06)
|
(0.31)
|
13.17
|
(4.74)
|
557
|
1.16
|
1.16
|
1.93
|
71
|
|
Year
ended 12/31/19 |
12.38
|
0.35
|
1.83
|
2.18
|
(0.36)
|
—
|
(0.36)
|
14.20
|
17.69
|
594
|
1.17
|
1.17
|
2.61
|
103
|
|
Year
ended 12/31/18 |
14.06
|
0.34(d)
|
(1.73)
|
(1.39)
|
(0.29)
|
—
|
(0.29)
|
12.38
|
(10.05)
|
502
|
1.21
|
1.21
|
2.45(d)
|
111
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
14.71
|
0.96
|
(2.69)
|
(1.73)
|
(0.96)
|
—
|
(0.96)
|
12.02
|
(11.89)
|
17
|
0.96
|
1.18
|
7.50
|
97
|
|
Year
ended 12/31/21 |
13.16
|
0.53
|
1.46
|
1.99
|
(0.44)
|
—
|
(0.44)
|
14.71
|
15.16
|
22
|
1.10
|
1.15
|
3.66
|
115
|
|
Year
ended 12/31/20 |
14.21
|
0.24
|
(0.98)
|
(0.74)
|
(0.25)
|
(0.06)
|
(0.31)
|
13.16
|
(4.88)
|
19
|
1.16
|
1.16
|
1.93
|
71
|
|
Year
ended 12/31/19 |
12.38
|
0.35
|
1.84
|
2.19
|
(0.36)
|
—
|
(0.36)
|
14.21
|
17.77
|
1,494
|
1.17
|
1.17
|
2.61
|
103
|
|
Year
ended 12/31/18 |
14.06
|
0.34(d)
|
(1.73)
|
(1.39)
|
(0.29)
|
—
|
(0.29)
|
12.38
|
(10.03)
|
1,483
|
1.20
|
1.20
|
2.46(d)
|
111
|
|
| ||||||||||||||
|
(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)
|
Net
investment income per share and the ratio of net investment income to average net assets includes significant dividends received during
the year ended December 31, 2018. Net investment
income
per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.23 and 1.73%, $0.12
and 0.98%, $0.20 and 1.48%, $0.27 and 1.98%,
$0.29
and 2.11% and $0.29 and 2.12% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
11 Invesco
Income Advantage International Fund
Hypothetical Investment and Expense Information
In connection with the
final settlement reached between Invesco and certain of its affiliates with certain regulators, including the New York Attorney General’s
Office, the SEC and the Colorado Attorney General’s Office (the settlement) arising out of certain market timing and unfair pricing
allegations made against Invesco and certain of its affiliates, Invesco and certain of its affiliates agreed, among other things, to disclose
certain hypothetical information regarding investment and expense information to Fund shareholders. The chart below is intended to reflect
the annual and cumulative impact of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s
returns over a 10-year period. The example reflects the following:
◾
You
invest $10,000 in the Fund and hold it for the entire 10-year period;
◾
Your
investment has a 5% return before expenses each year;
◾
The
Fund’s current annual expense ratio includes, if applicable, any contractual fee waiver or expense reimbursement that would apply
for the period for which it was committed;
◾
Hypotheticals
both with and without any applicable initial sales charge applied; and
◾
There
is no sales charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio
for the Fund’s classes for any of the years shown. This is only a hypothetical presentation made to illustrate what expenses and
returns would be under the above scenarios; your actual returns and expenses are likely to differ (higher or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.26%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
(1.97%)
|
1.35%
|
4.77%
|
8.31%
|
11.98%
|
15.76%
|
19.67%
|
23.72%
|
27.90%
|
32.22%
|
|
End
of Year Balance |
$9,803.43
|
$10,134.79
|
$10,477.34
|
$10,831.48
|
$11,197.58
|
$11,576.06
|
$11,967.33
|
$12,371.82
|
$12,789.99
|
$13,222.29
|
|
Estimated
Annual Expenses |
$671.30
|
$161.50
|
$166.96
|
$172.60
|
$178.44
|
$184.47
|
$190.70
|
$197.15
|
$203.81
|
$210.70
|
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.26%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
1.62%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.74%
|
7.25%
|
10.87%
|
14.62%
|
18.49%
|
22.50%
|
26.64%
|
30.92%
|
35.34%
|
39.92%
|
|
End
of Year Balance |
$10,374.00
|
$10,724.64
|
$11,087.13
|
$11,461.88
|
$11,849.29
|
$12,249.80
|
$12,663.84
|
$13,091.88
|
$13,534.38
|
$13,991.85
|
|
Estimated
Annual Expenses |
$128.36
|
$170.90
|
$176.68
|
$182.65
|
$188.82
|
$195.20
|
$201.80
|
$208.62
|
$215.67
|
$222.96
|
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
2.01%
|
2.37%
|
2.37%
|
2.37%
|
2.37%
|
2.37%
|
2.37%
|
2.37%
|
1.62%
|
1.62%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
2.99%
|
5.70%
|
8.48%
|
11.33%
|
14.26%
|
17.26%
|
20.35%
|
23.51%
|
27.69%
|
32.00%
|
|
End
of Year Balance |
$10,299.00
|
$10,569.86
|
$10,847.85
|
$11,133.15
|
$11,425.95
|
$11,726.45
|
$12,034.86
|
$12,351.38
|
$12,768.85
|
$13,200.44
|
|
Estimated
Annual Expenses |
$204.00
|
$247.30
|
$253.80
|
$260.47
|
$267.33
|
$274.36
|
$281.57
|
$288.98
|
$203.47
|
$210.35
|
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.51%
|
1.87%
|
1.87%
|
1.87%
|
1.87%
|
1.87%
|
1.87%
|
1.87%
|
1.87%
|
1.87%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.49%
|
6.73%
|
10.07%
|
13.52%
|
17.07%
|
20.73%
|
24.51%
|
28.41%
|
32.43%
|
36.57%
|
|
End
of Year Balance |
$10,349.00
|
$10,672.92
|
$11,006.99
|
$11,351.50
|
$11,706.81
|
$12,073.23
|
$12,451.12
|
$12,840.84
|
$13,242.76
|
$13,657.26
|
|
Estimated
Annual Expenses |
$153.63
|
$196.55
|
$202.71
|
$209.05
|
$215.60
|
$222.34
|
$229.30
|
$236.48
|
$243.88
|
$251.52
|
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.01%
|
1.37%
|
1.37%
|
1.37%
|
1.37%
|
1.37%
|
1.37%
|
1.37%
|
1.37%
|
1.37%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.99%
|
7.76%
|
11.68%
|
15.73%
|
19.93%
|
24.29%
|
28.80%
|
33.47%
|
38.32%
|
43.34%
|
|
End
of Year Balance |
$10,399.00
|
$10,776.48
|
$11,167.67
|
$11,573.06
|
$11,993.16
|
$12,428.51
|
$12,879.66
|
$13,347.20
|
$13,831.70
|
$14,333.79
|
|
Estimated
Annual Expenses |
$103.01
|
$145.05
|
$150.32
|
$155.77
|
$161.43
|
$167.29
|
$173.36
|
$179.65
|
$186.18
|
$192.93
|
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.01%
|
1.26%
|
1.26%
|
1.26%
|
1.26%
|
1.26%
|
1.26%
|
1.26%
|
1.26%
|
1.26%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.99%
|
7.88%
|
11.91%
|
16.10%
|
20.44%
|
24.95%
|
29.62%
|
34.47%
|
39.50%
|
44.71%
|
|
End
of Year Balance |
$10,399.00
|
$10,787.92
|
$11,191.39
|
$11,609.95
|
$12,044.16
|
$12,494.61
|
$12,961.91
|
$13,446.69
|
$13,949.59
|
$14,471.31
|
|
Estimated
Annual Expenses |
$103.01
|
$133.48
|
$138.47
|
$143.65
|
$149.02
|
$154.59
|
$160.38
|
$166.37
|
$172.60
|
$179.05
|
|
| ||||||||||
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.01%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.99%
|
7.93%
|
12.02%
|
16.27%
|
20.67%
|
25.25%
|
29.99%
|
34.92%
|
40.03%
|
45.34%
|
|
End
of Year Balance |
$10,399.00
|
$10,793.12
|
$11,202.18
|
$11,626.74
|
$12,067.40
|
$12,524.75
|
$12,999.44
|
$13,492.12
|
$14,003.47
|
$14,534.20
|
|
Estimated
Annual Expenses |
$103.01
|
$128.21
|
$133.07
|
$138.11
|
$143.35
|
$148.78
|
$154.42
|
$160.27
|
$166.35
|
$172.65
|
|
| ||||||||||
1
Your
actual expenses may be higher or lower than those shown.
2
The
hypothetical assumes you hold your investment for a full 10 years. Therefore, any applicable deferred sales charge that might apply in
year one for Class C has not been deducted.
12 Invesco
Income Advantage International Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Income Advantage International Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
GLVEY-PRO-1
|
Prospectus
April
28,
2023
Class:
A (ALAAX), C (CLIAX),
R (RLIAX), Y (ALAYX),
R5 (ILAAX), R6 (IIASX)
Invesco
Income Allocation Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
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Back
Cover |
Invesco
Income Allocation Fund
Fund Summary
Investment
Objective(s)
The
Fund's investment objective is current income and,
secondarily, growth of capital.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
A contingent deferred sales charge may
apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 30%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual funds advised by Invesco Advisers, Inc. (Invesco
or the Adviser) and exchange-traded funds (ETFs) and other pooled investment vehicles advised by Invesco Capital Management LLC (Invesco
Capital) or mutual funds, ETFs and other pooled investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco and
Invesco Capital are affiliates of each other as they are both indirect wholly-owned subsidiaries of Invesco Ltd. The Fund invests its
assets in a selection of underlying funds which invest primarily in international or domestic equities, fixed-income securities or real
estate investment trusts (REITs). The Fund’s target allocation is to invest 60%-70% of its total assets in underlying funds that
invest primarily in fixed-income securities and 30%-40% of its total assets in underlying funds that invest primarily in equity securities,
including REITs.
The
Adviser uses a three-step process to create the Fund’s portfolio including:
(1) a strategic asset allocation by the Adviser among broad asset classes; (2) the actual selection by the Adviser of underlying funds
to represent the broad asset classes and the determination by the Adviser of target weightings in these underlying funds; in the case
where there are multiple funds in a broad asset class, the Adviser attempts to balance the amount of active risk contributed by each underlying
fund in order to determine the allocation; and (3) the ongoing monitoring of the Fund’s asset class allocations, underlying funds
and target weightings in the underlying funds.
The
Adviser rebalances the Fund’s investments in the underlying funds on
an annual basis to keep them at their target weightings. Although the Adviser has the ability to rebalance on a more frequent basis if
it believes it is appropriate to do so, the Fund’s asset class weightings may not match the above percentage weightings during a
quarter due to market fluctuations, cash flows and other factors. The Adviser may change the Fund’s asset class allocations, the
underlying funds or the target weightings in the underlying funds without notice to, or approval by, shareholders.
In
attempting to meet their investment objectives or to manage subscription
and redemption requests, certain underlying funds engage in active and frequent trading of portfolio securities.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. Because the Fund is a fund of funds, the Fund is subject to the risks associated with the
1 Invesco
Income Allocation Fund
underlying
funds in which it invests. The principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism, economic crisis or adverse investor sentiment
generally. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well,
there can be no assurance that specific investments held by an underlying fund will rise in value.
Fund
of Funds Risk. The Fund’s performance depends on that of
the underlying funds in which it invests. Accordingly, the risks associated with an investment in the Fund include the risks associated
with investments in the underlying funds. The Fund will indirectly pay a proportional share of the fees and expenses of the underlying
funds in which it invests. There are risks that the Fund will vary from its target weightings (if any) in the underlying funds, that the
underlying funds will not achieve their investment objectives, that the underlying funds’ performance may be lower than their represented
asset classes, and that the Fund may withdraw its investments in an underlying fund at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) an exchange-traded fund’s shares may trade above or below its net asset value;
(2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading an exchange-traded
fund’s shares may be halted by the listing exchange; (4) a passively-managed exchange-traded fund may not track the performance
of the reference asset; and (5) a passively-managed exchange-traded fund may hold troubled securities. Investment in exchange-traded funds
may involve duplication of management fees and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate
share of any expenses paid by the exchange-traded funds in which it invests. Further, certain exchange-traded funds in which the Fund
or an underlying fund may invest are leveraged, which may result in economic leverage, permitting the Fund or an underlying fund to gain
exposure that is greater than would be the case in an unlevered instrument, and potentially resulting in greater volatility.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Allocation
Risk.
The Fund’s investment performance depends, in part, on how its assets are allocated among the underlying funds or asset
classes.
The Adviser’s evaluations and assumptions regarding the asset classes or the underlying funds in which the Fund invests may be incorrect,
causing the Fund to be invested (or not invested) in one or more asset classes or underlying funds at an inopportune time, which could
negatively affect the Fund’s performance.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. An underlying
fund’s adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune
time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially
increase an underlying fund’s portfolio turnover rate and transaction costs.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received
earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in an underlying fund reinvesting
these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage- and asset-backed securities also
are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing
the price of the mortgage- and asset-backed securities and an underlying fund’s share price to fall. An unexpectedly high rate of
defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities and will result in losses
to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of
securities and an underlying fund may be unable to sell these securities at the time or price it desires. During periods of market stress
or high redemptions, an underlying fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid
privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods of market stress. Privately
issued mortgage-related securities are not subject to the same underwriting requirements as those with government or government-sponsored
entity guarantees and, therefore, mortgage loans underlying privately issued mortgage-related securities may have less favorable collateral,
credit risk, liquidity risk or other underwriting characteristics, and wider variances in interest rate, term, size, purpose and borrower
characteristics. An underlying fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with
weakened credit histories or with lower capacity to make timely payments
2 Invesco
Income Allocation Fund
on
their mortgages. Liquidity risk is even greater for mortgage pools that include subprime mortgages.
Municipal
Securities Risk. The
risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the security.
Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a
decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate
the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status
of municipal securities.
Senior
Loans and Other Loans Risk. Risks associated with an investment
in Senior Loans include credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair an underlying fund’s ability to sell Senior
Loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments.
Extended trade settlement periods may result in cash not being immediately available to an underlying fund. As a result, an underlying
fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding
Senior Loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans can be affected
by and sensitive to changes in government regulation and to economic downturns in the United States and abroad. Senior loans are also
subject to the risk that a court could subordinate a senior loan or take other action detrimental to the holders of senior loans. Loans
are subject to the risk that the value of the collateral, if any, securing a loan may decline, be insufficient to meet the obligations
of the borrower, or be difficult to liquidate. Loan investments are often issued in connection with highly leveraged transactions which
are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy.
These risks could cause an underlying fund to lose income or principal on a particular investment, which in turn could affect an underlying
fund’s returns.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. Regulators and financial industry working groups
in several jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to replace
LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the Secured
Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other interbank
offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which
an
underlying fund invests. For example, there can be no assurance that the composition or characteristics of any ARRs or financial instruments
in which underlying fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that
these instruments will have the same volume or liquidity. Additionally, although regulators have generally prohibited banking institutions
from entering into new contracts that reference those USD LIBOR settings that continue to exist, there remains uncertainty and risks relating
to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which
a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. The effects
of such uncertainty and risks in “legacy” USD LIBOR instruments held by an underlying fund could result in losses to an underlying
fund.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market
anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if an underlying fund
invests in CLOs that hold loans of uncreditworthy borrowers or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
Covenant
Lite Loans Risk.
Because covenant lite loans contain few or no financial maintenance covenants, covenant lite loans may not include terms that permit the
lender of the loan to monitor the borrower’s financial performance and, if certain criteria are breached, declare a default, which
would allow the lender to restructure the loan or take other action intended to help mitigate losses. As a result, an underlying fund
may experience relatively greater difficulty or delays in enforcing its rights on its holdings of covenant lite loans than its holdings
of loans or securities with financial maintenance covenants, which may result in losses to an underlying fund, especially during a downturn
in the credit cycle.
High
Yield Debt Securities (Junk Bond) Risk.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject an underlying fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities.
Prices of high yield debt securities tend to be very volatile.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Subordinated
Debt Risk.
Perpetual subordinated debt is a type of hybrid instrument that has no maturity date for the return of principal and does not need to
be redeemed by the issuer. These investments typically have lower credit ratings and lower priority than other obligations of an issuer
during bankruptcy, presenting a greater risk for nonpayment. This risk increases as the priority of the obligation becomes lower. Payments
on these securities may be subordinated to all existing and future liabilities and obligations of subsidiaries and associated companies
of an issuer. Additionally, some perpetual subordinated debt does not restrict the ability of an issuer’s subsidiaries to incur
further unsecured indebtedness.
Defaulted
Securities Risk.
Defaulted securities pose a greater risk that principal will not be repaid than non-defaulted securities. Defaulted securities and any
securities received in an exchange for such securities may be subject to restrictions on resale.
Unrated
Securities Risk.
Because an underlying fund purchases securities that are not rated by any nationally recognized statistical rating organization, the investment
adviser may internally assign ratings to those
3 Invesco
Income Allocation Fund
securities,
after assessing their credit quality and other factors, in categories similar to those of nationally recognized statistical rating organizations.
There can be no assurance, nor is it intended, that the investment adviser’s credit analysis process is consistent or comparable
with the credit analysis process used by a nationally recognized statistical rating organization. Unrated securities are considered “investment-grade”
or “below-investment-grade” if judged by the investment adviser to be comparable to rated investment- grade or below-investment-grade
securities. The investment adviser’s rating does not constitute a guarantee of the credit quality. In addition, some unrated securities
may not have an active trading market or may trade less actively than rated securities, which means that an underlying fund might have
difficulty selling them promptly at an acceptable price.
Credit
Linked Notes Risk.
Risks of credit linked notes include those risks associated with the underlying reference obligation including but not limited to market
risk, interest rate risk, credit risk, default risk and, in some cases, foreign currency risk. An investor in a credit linked note bears
counterparty risk or the risk that the issuer of the credit linked note will default or become bankrupt and not make timely payment of
principal and interest of the structured security. Credit linked notes may be less liquid than other investments and therefore harder
to dispose of at the desired time and price. In addition, credit linked notes may be leveraged and, as a result, small changes in the
value of the underlying reference obligation may produce disproportionate losses to an underlying fund.
TBA
Transactions Risk.
TBA transactions involve the risk of loss if the securities received are less favorable than what was anticipated by an underlying fund
when entering into the TBA transaction, or if the counterparty fails to deliver the securities. When an underlying fund enters into a
short sale of a TBA mortgage it does not own, an underlying fund may have to purchase deliverable mortgages to settle the short sale at
a higher price than anticipated, thereby causing a loss. As there is no limit on how much the price of mortgage securities can increase,
an underlying fund’s exposure is unlimited. An underlying fund may not always be able to purchase mortgage securities to close out
the short position at a particular time or at an acceptable price. In addition, taking short positions results in a form of leverage,
which could increase the volatility of an underlying fund’s share price.
Zero
Coupon or Pay-In-Kind Securities Risk.
The value, interest rates, and liquidity of non-cash paying instruments, such as zero coupon and pay-in-kind securities, are subject to
greater fluctuation than other types of securities. The higher yields and interest rates on pay-in-kind securities reflect the payment
deferral and increased credit risk associated with such instruments and that such investments may represent a higher credit risk than
loans that periodically pay interest.
Dollar
Roll Transactions Risk.
Dollar roll transactions occur in connection with TBA transactions and involve the risk that the market value of the securities an underlying
fund is required to purchase may decline below the agreed upon purchase price of those securities. Dollar roll transactions add a form
of leverage to an underlying fund’s portfolio, which may make the Fund’s returns more volatile and increase the risk of loss.
In addition, dollar roll transactions may increase an underlying fund’s portfolio turnover, which may result in increased brokerage
costs and may lower an underlying fund’s actual return.
REIT
Risk/Real Estate Risk.
Investments in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological
factors that affect property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap
companies, may be more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt
obligations, held by an underlying fund, an underlying fund may acquire real estate directly, which involves additional risks such as
environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of an underlying
fund’s securities become illiquid, an underlying fund may not be able to timely pay redemption proceeds and may need to sell securities
at significantly reduced prices.
Issuer
Focus Risk. Although an underlying fund is classified as a diversified
fund, it may focus its investments in a relatively small number of issuers. The greater an underlying fund's exposure to any single investment
or issuer, the greater the losses an underlying fund may experience upon any single economic, market, business, political, regulatory,
or other occurrence. As a result, there may be more fluctuation in the price of an underlying fund's shares.
Investing
in Stocks Risk.
The value of an underlying fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant
short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have
unexpected negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets
may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Dividend
Risk. As a
group,
securities that pay high dividends may fall out of favor with
investors
and underperform companies that do not pay high dividends. Also,
changes in the dividend policies of such companies
and the capital resources available for such companies’
dividend payments may affect an underlying fund. There is the possibility that dividend-paying companies could reduce or eliminate
the payment of dividends in the future or an anticipated acceleration
of dividends may not occur. Depending on market conditions, dividend paying stocks that meet an underlying fund’s investment criteria
may not be widely available for purchase by an underlying fund,
which may increase the volatility of an underlying fund’s returns and limit its ability to produce current income while remaining
fully diversified. High-dividend stocks may not experience high earnings
growth or capital appreciation.
An underlying fund’s performance
during a broad market advance could suffer because dividend paying
stocks may not experience the same capital appreciation
as non-dividend paying stocks.
Foreign
Securities Risk.
An underlying fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation
policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk
of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which an underlying fund could lose its
entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign
companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing
and accounting controls, and may therefore be more susceptible to fraud or corruption. There may be less public information available
about foreign companies than U.S. companies, making it difficult to evaluate those foreign companies. Unless an underlying fund has hedged
its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may
4 Invesco
Income Allocation Fund
cause
the value of securities denominated in such foreign currency (or other instruments through which an underlying fund has exposure to foreign
currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies,
if used, are not always successful.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede an underlying fund’s
ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change
quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization
of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country,
protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Depositary
Receipts Risk.
Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers
of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with
respect to the deposited securities to the holders of such receipts. An underlying fund may therefore receive less timely information
or have less control than if it invested directly in the foreign issuer.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many
other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations
and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many
instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially
less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller
companies may be subject to wider price fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable
price when it wants to sell them. Since small- and mid-cap companies typically reinvest a high proportion of
their
earnings in their business, they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial
period of time to realize a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment strategies will yield uncorrelated performance under all market conditions. In addition, the particular mix of
alternative investments in an underlying fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to
the risk that its alternative investments may undergo a correlation shift, resulting in returns that are correlated with the broader market
and/or with an underlying fund’s other alternative investments.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions subject an underlying fund to market risk because the value or yield of a security at delivery
may be more or less than the purchase price or yield generally available when delivery occurs, and counterparty risk because an underlying
fund relies on the buyer or seller, as the case may be, to consummate the transaction. These transactions also have a leveraging effect
on an underlying fund because an underlying fund commits to purchase securities that it does not have to pay for until a later date, which
increases an underlying fund’s overall investment exposure and, as a result, its volatility.
Infrastructure-Related
Companies Risk. An underlying fund will concentrate its investments
in the infrastructure industry. Infrastructure-related companies are subject to a variety of risk factors, including costs associated
with environmental, governmental and other regulations, high interest costs for capital construction programs, high leverage, the effects
of economic slowdowns, surplus capacity, increased competition, fluctuations of fuel prices, the effects of energy conservation policies,
unfavorable tax laws or accounting policies, environmental damage, difficulty in raising capital, increased susceptibility to terrorist
acts or political actions, and general changes in market sentiment towards infrastructure assets.
Master
Limited Partnership Risk.
An underlying fund invests in securities of MLPs, which are subject to the following risks:
◾
Limited
Partner Risk. An MLP is a public limited partnership or limited
liability company taxed as a partnership under the Internal Revenue Code of 1986, as amended (the Code). Although the characteristics
of MLPs closely resemble a traditional limited partnership, a major difference is that MLPs may trade on a public exchange or in the over-the-counter
market. The risks of investing in an MLP are similar to those of investing in a partnership, including more flexible governance structures,
which could result in less protection for investors than investments in a corporation. Investors in an MLP normally would not be liable
for the debts of the MLP beyond the amount that the investor has contributed but investors may not be shielded to the same extent that
a shareholder of a corporation would be. In certain circumstances, creditors of an MLP would have the right to seek return of capital
distributed to a limited partner, which right would continue after an investor sold its investment in the MLP. In addition, MLP distributions
may be reduced by fees and other expenses incurred by the MLP.
◾
Equity
Securities Risk. Investment in MLPs involves risks that differ
from investments in common stock, including risks related to limited control and limited rights to vote on matters affecting the
MLP, risks related to potential conflicts of interest between the MLP and
5 Invesco
Income Allocation Fund
the
MLP’s general partner, dilution risks and cash flow risks. MLP common units can be affected by macroeconomic and other factors affecting
the stock market in general, expectations of interest rates, investor sentiment towards MLPs, changes in a particular issuer’s financial
condition, or unfavorable or unanticipated poor performance of a particular issuer.
◾
Liquidity
Risk. The ability to trade on a public exchange or in the over-the-counter
market provides a certain amount of liquidity not found in many limited partnership investments. However, MLP interests may be less liquid
than conventional publicly traded securities and, therefore, more difficult to trade at desirable times and/or prices.
◾
Interest
Rate Risk. MLPs generally are considered interest-rate sensitive
investments. During periods of interest rate volatility, these investments may not provide attractive returns.
◾
General
Partner Risk. The holder of the general partner or managing member
interest can be liable in certain circumstances for amounts greater than the amount of the holder’s investment in the general partner
or managing member.
◾
MLP
Tax Risk.
MLPs taxed as partnerships do not pay U.S. federal income tax at the partnership level, subject to the application of certain partnership
audit rules. A change in current tax law, or a change in the underlying business mix of a given MLP, however, could result in an MLP being
classified as a corporation for U.S. federal income tax purposes, which would have the effect of reducing the amount of cash available
for distribution by the MLP and, as a result, could result in a reduction of the value of an underlying fund’s investment, and consequently
the Fund’s investment in an underlying fund and lower income.
Additionally,
if an underlying fund were to invest more than 25% of its total
assets in MLPs that are taxed as partnerships this could cause an underlying fund to lose its status as regulated investment company under
Subchapter M of the Code.
Exchange-Traded
Notes Risk.
Exchange-traded notes are subject to credit risk, counterparty risk, and the risk that the value of the exchange-traded note may drop
due to a downgrade in the issuer's credit rating. The value of an exchange-traded note may also be influenced by time to maturity, level
of supply and demand for the exchange-traded note, volatility and lack of liquidity in the underlying market, changes in the applicable
interest rates, and economic, legal, political, or geographic events that affect the referenced underlying market or assets. An underlying
fund will bear its proportionate share of any fees and expenses borne by an exchange-traded note in which it invests. For certain exchange-traded
notes, there may be restrictions on an underlying fund’s right to redeem its investment, which is meant to be held until maturity.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay an underlying fund or the Fund
the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment
up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of
the underlying asset could result in an underlying fund or the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset, which may make the underlying fund’s or the Fund’s returns
more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the
underlying fund or the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be
more acute under adverse market conditions, during which the
underlying
fund or the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient
and subject to changing government regulation that could impact the underlying fund’s or the Fund’s ability to use certain
derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or
limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. These
risks are greater for certain underlying funds than mutual funds that do not use derivative instruments or that use derivative instruments
to a lesser extent than certain underlying funds to implement their investment strategies.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries.
Geographic
Focus Risk.
An underlying fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single
country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant
negative impact on an underlying fund’s investment performance.
Borrowing
Risk.
Borrowing money to buy securities exposes an underlying fund to leverage and will cause an underlying fund’s share price to be more
volatile because leverage will exaggerate the effect of any increase or decrease in the value of an underlying fund’s portfolio
securities. Borrowing money may also require an underlying fund to liquidate positions when it may not be advantageous to do so. In addition,
an underlying fund will incur interest expenses and other fees on borrowed money. There can be no assurance that an underlying fund’s
borrowing strategy will enhance and not reduce the underlying fund’s returns.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact an underlying
fund’s operations, universe of potential investment options, and return potential.
Active
Trading Risk.
Active trading of an underlying fund’s portfolio securities may result in added expenses, a lower return and increased tax liability.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. Because the investment process of the Fund relies heavily on its
asset allocation process, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on the Fund’s net asset value. Similarly, because the investment processes of certain underlying funds rely heavily on their
security selection processes, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on certain underlying funds’ net asset values. Additionally, legislative, regulatory, or tax developments may adversely affect
management of the Fund and underlying funds and, therefore, their abilities to achieve their investment objectives.
6 Invesco
Income Allocation Fund
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The bar chart shows changes in the performance
of the Fund from year to year as of December 31. The performance table compares the Fund's performance to that of a style-specific benchmark,
a peer group benchmark comprised of funds with investment objectives
and strategies similar to those of the Fund and a broad-based securities market benchmark (in that order).
The
Fund's past performance (before and after taxes) is not necessarily an indication of its future performance.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund's website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
9.32%
|
|
Worst
Quarter |
March
31, 2020 |
-14.79%
|
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
10/31/2005
|
-16.64%
|
0.18%
|
3.12%
|
|
Return
After Taxes on Distributions |
|
-17.65
|
-1.32
|
1.65
|
|
Return
After Taxes on Distributions and Sale of
Fund
Shares |
|
-9.71
|
-0.35
|
1.87
|
|
| ||||
|
Class
C |
10/31/2005
|
-13.29
|
0.57
|
3.08
|
|
| ||||
|
Class
R |
10/31/2005
|
-11.91
|
1.09
|
3.45
|
|
| ||||
|
Class
Y |
10/3/2008
|
-11.48
|
1.58
|
3.96
|
|
| ||||
|
Class
R5 |
10/31/2005
|
-11.55
|
1.56
|
3.95
|
|
| ||||
|
Class
R6 |
4/4/2017
|
-11.51
|
1.57
|
3.841
|
|
| ||||
|
Custom
Invesco Income Allocation Index2
|
|
-14.62
|
3.22
|
4.79
|
|
| ||||
|
Lipper
Mixed-Asset Target Allocation Conservative
Funds
Index |
|
-12.70
|
2.10
|
3.53
|
|
| ||||
|
S&P
500®
Index (reflects
no deduction for fees,
expenses
or taxes) |
|
-18.11
|
9.42
|
12.56
|
|
| ||||
1
Performance shown prior to the inception
date is that of the Fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although invested in
the same portfolio of securities, Class R6 shares' returns of the Fund will be different from Class A shares' returns of the Fund as they
have different expenses.
2
Custom Invesco Income Allocation Index
is composed of the following indexes: S&P 500®
Index (reflects no deduction for fees, expenses or taxes), MSCI
EAFE®
Index (Net) (reflects reinvested dividends net of withholding taxes, but reflects no deduction for fees, expenses or other taxes), FTSE
NAREIT Equity REITs Index (reflects no deduction for fees, expenses or other taxes) and Bloomberg U.S. Universal Index (reflects no deduction
for fees, expenses or other taxes). The composition of the index may change based on the Fund's target asset allocation. The current composition
of the index does not reflect its historical composition and will likely be altered in the future to better reflect the Fund's objectives.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual
after-tax returns depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant
to investors who hold their Fund shares through tax-advantaged arrangements,
such
as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Jeffrey
Bennett, CFA |
Portfolio
Manager |
2020
|
|
| ||
|
Alessio
de Longis, CFA |
Portfolio
Manager |
2023
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial
7 Invesco
Income Allocation Fund
adviser
to recommend the Fund over another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s
website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is current income and, secondarily, growth of capital. The Fund’s investment objectives may be
changed by the Board of Trustees (the Board) without shareholder approval.
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual
funds advised by Invesco and ETFs and other pooled investment vehicles advised by Invesco Capital or mutual funds, ETFs and other pooled
investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco and Invesco Capital are affiliates of each other
as they are both indirect wholly-owned subsidiaries of Invesco Ltd. The Fund invests its assets in a selection of underlying funds which
invest primarily in international or domestic equities, fixed-income securities or REITs. The Fund’s target allocation is to invest
60%-70% of its total assets in underlying funds that invest primarily in fixed-income securities and 30%-40% of its total assets in underlying
funds that invest primarily in equity securities, including REITs.
The
Adviser uses a three-step process to create the Fund’s portfolio including:
(1) a strategic asset allocation by the Adviser among broad asset classes; (2) the actual selection by the Adviser of underlying funds
to represent the broad asset classes and the determination by the Adviser of target weightings in these underlying funds; in the case
where there are multiple funds in a broad asset class, the Adviser attempts to balance the amount of active risk contributed by each underlying
fund in order to determine the allocation; and (3) the ongoing monitoring of the Fund’s asset class allocations, underlying funds
and target weightings in the underlying funds.
The
Adviser rebalances the Fund’s investments in the underlying funds on
an annual basis to keep them at their target weightings. Although the Adviser has the ability to rebalance on a more frequent basis if
it believes it is appropriate to do so, the Fund’s asset class weightings may not match the above percentage weightings during a
quarter due to market fluctuations, cash flows and other factors. The Adviser may change the Fund’s asset class allocations, the
underlying funds or the target weightings in the underlying funds without notice to, or approval by, shareholders.
In
attempting to meet their investment objectives or to manage subscription
and redemption requests, certain underlying funds engage in active and frequent trading of portfolio securities.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole.
The
value of an underlying fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
an underlying fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry
or sector, such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters,
widespread disease or other public health issues, war, military conflict, acts of terrorism, economic crisis or other events may have
a significant impact on the value of an underlying fund’s investments, as well as the financial markets and global economy generally.
Such circumstances may also impact the ability of the Adviser to effectively implement an underlying fund’s investment strategy.
During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can
be no assurance that specific investments held by an underlying fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO) member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine
(and the potential for further sanctions in response to Russia’s continued military activity) may escalate. These and other corresponding
events, have had, and could continue to have, severe negative effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall uncertainty. The negative impacts may be particularly acute in certain sectors including,
but not limited to, energy and financials. Russia may take additional countermeasures or retaliatory actions (including cyberattacks),
which could exacerbate negative consequences on global financial markets. The duration of the conflict and corresponding sanctions and
related events cannot be predicted. The foregoing may result in a negative impact on Fund performance and the value of an investment in
an underlying fund, even beyond any direct investment exposure an underlying fund may have to Russian issuers or the adjoining geographic
regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on an underlying fund’s
performance.
Fund
of Funds Risk.
The Fund’s performance depends on that of the underlying funds in which it invests. Accordingly, the risks associated with an investment
in the Fund include the risks associated with investments in the underlying funds. The Fund will indirectly pay a proportional share of
the fees and expenses of the underlying funds in which it invests. There is a risk that the Fund will vary from its target weightings
(if any) in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will
achieve their investment objectives, and their performance may be lower than their represented asset classes. Underlying Funds that are
not affiliated with the Fund may change their portfolio managers, investment objectives, investment strategies, policies or
8 Invesco
Income Allocation Fund
practices
without the approval of the Fund, which may cause the Fund to withdraw its investments therein at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) the market price of an exchange-traded fund’s shares may trade above or below
its net asset value; (2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading
an exchange-traded fund’s shares may be halted if the listing exchange’s officials deem such action appropriate; (4) a passively-managed
exchange-traded fund may not accurately track the performance of the reference asset; and (5) a passively-managed exchange-traded fund
would not necessarily sell a security because the issuer of the security was in financial trouble unless the security is removed from
the index that the exchange-traded fund seeks to track. Investment in exchange-traded funds may involve duplication of management fees
and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded
funds in which it invests. Further, certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged. Investing
in leveraged exchange-traded funds may result in economic leverage, which does not result in the possibility of the Fund or an underlying
fund incurring obligations beyond its investments, but nonetheless permits the Fund or an underlying fund to gain exposure that is greater
than would be the case in an unlevered instrument, which can result in greater volatility.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Allocation
Risk. The Fund’s investment performance depends, in part,
on how its assets are allocated among the underlying funds or asset classes. The Adviser’s evaluations and assumptions regarding
the asset classes or the underlying funds in which the Fund invests may be incorrect, causing the Fund to be invested (or not invested)
in one or more asset classes or underlying funds at an inopportune time. The Adviser’s allocation of the Fund’s assets among
asset classes and underlying funds may therefore not produce the desired results and could cause the Fund to perform poorly or underperform
the Fund’s benchmark and other available funds.
◾
Affiliated
Portfolio Risk. In managing the Fund, the Adviser will have authority
to select and substitute underlying funds. The Adviser may be subject to potential conflicts of interest in selecting underlying funds
because the fees paid to the Adviser or its affiliates by some underlying funds for advisory services are higher than the fees paid by
other underlying funds. In addition, the Fund's portfolio managers may also serve as portfolio managers of the underlying funds.
However, the Adviser monitors the investment process to seek to
identify, address and resolve any potential issues and has adopted certain compliance procedures which are designed to address these types
of conflicts.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. If an issuer seeks to restructure the terms of its borrowings
or an underlying fund is required to seek recovery upon a default in the payment of interest or the repayment of principal, an underlying
fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s perception of such strength or
in the credit rating of the issuer or the security may affect the value of debt securities. An underlying fund’s adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the
federal funds and equivalent foreign rates or other changes
to monetary policy or regulatory actions may expose fixed income
markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities.
It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of an underlying fund’s investments and share price may decline. Changes in
central bank policies
could also result in higher than normal redemptions by shareholders,
which could potentially increase an underlying fund’s portfolio turnover rate and transaction costs and potentially lower an underlying
fund’s performance returns.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, differ from
conventional debt securities because principal is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed
securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received earlier or later than
expected due to changes in prepayment rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a
result, an underlying fund may reinvest these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage-
and asset-backed securities also are subject to extension risk. An unexpected rise in interest rates could reduce the rate of prepayments
and extend the life of the mortgage- and asset-backed securities, causing the price of the mortgage- and asset-backed securities and an
underlying fund’s share price to fall and would make the mortgage- and asset-backed securities more sensitive to interest rate changes.
An unexpectedly high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities
and will result in losses to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid
than other types of securities and an underlying fund may be unable to sell these securities at the time or price it desires. During periods
of market stress or high redemptions, an underlying fund may be forced to sell these securities at significantly reduced prices, resulting
in losses. Liquid privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods of market
stress. Privately issued mortgage-related securities are not subject to the same underwriting requirements for the underlying mortgages
that are applicable to those mortgage-related securities that have government or government-sponsored entity guarantees. As a result,
the mortgage loans underlying privately issued mortgage-related securities may, and frequently
9 Invesco
Income Allocation Fund
do,
have less favorable collateral, credit risk, liquidity risk or other underwriting characteristics than government or government-sponsored
mortgage-related securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics.
An underlying fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit
histories or with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include
subprime mortgages.
Municipal
Securities Risk.
The risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the security.
Municipal obligations may be more susceptible to downgrades or defaults during recessions or similar periods of economic stress. Municipal
securities structured as revenue bonds are generally not backed by the taxing power of the issuing municipality but rather the revenue
from the particular project or entity for which the bonds were issued. If the Internal Revenue Service determines that an issuer of a
municipal security has not complied with applicable tax requirements, interest from the security could be treated as taxable, which could
result in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce
or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state
tax status of municipal securities.
Senior
Loans and Other Loans Risk. There are a number of risks associated
with an investment in Senior Loans including credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair an underlying fund’s ability to sell Senior
Loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments.
Extended trade settlement periods may result in cash not being immediately available to an underlying fund. As a result, an underlying
fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding
Senior Loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans can be affected
by and is sensitive to, changes in government regulation and to economic downturns in the United States and abroad. These risks could
cause an underlying fund to lose income or principal on a particular investment, which in turn could affect an underlying fund’s
returns.
In
addition to the risks typically associated with debt securities senior loans
are also subject to the risk that a court could subordinate a senior loan, which typically holds a senior position in the capital structure
of a borrower, to presently existing or future indebtedness or take other action detrimental to the holders of senior loans. Loans usually
have mandatory and optional prepayment provisions. If a borrower prepays a loan, an underlying fund will have to reinvest the proceeds
in other loans or financial assets that may pay lower rates of return.
Loans
are subject to the risk that the value of the collateral, if any, securing
a loan may decline, be insufficient to meet the obligations of the borrower, or be difficult to liquidate. In the event of a default,
an underlying fund may have difficulty collecting on any collateral and would not have the ability to collect on any collateral for an
uncollateralized loan. In addition, the lenders’ security interest or their enforcement of their security under the loan agreement
may be found by a court to be invalid or the collateral may
be used
to pay other outstanding obligations of the borrower. An underlying fund’s access to collateral, if any, may be limited by bankruptcy,
other insolvency laws, or by the type of loan an underlying fund has purchased. As a result, a collateralized loan may not be fully collateralized
and can decline significantly in value.
Loan
investments are often issued in connection with highly leveraged transactions.
Such transactions include leveraged buyout loans, leveraged recapitalization loans, and other types of acquisition financing. These obligations
are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy.
Highly leveraged loans also may be less liquid than other loans. If an underlying fund voluntarily or involuntarily sold those types of
loans, it might not receive the full value it expected.
Due
to restrictions on transfers in loan agreements and the nature of the
private syndication of loans including, for example, the lack of publicly-available information, some loans are not as easily purchased
or sold as publicly-traded securities. Some loans are illiquid, which may make it difficult for an underlying fund to value them or dispose
of them at an acceptable price when it wants to. Additionally, valuation of Senior Loans may require greater research due to limited public
information available and elements of judgment may play a greater role in valuation since there may be a lack of objective data available.
The market price of investments in floating rate loans is expected to be less affected by changes in interest rates than fixed-rate investments
because floating rate loans pay a floating rate of interest that will fluctuate as market interest rates do and therefore should more
closely track market movements in interest rates.
Direct
investments in loans and, to a lesser degree, investments in participation
interests in or assignments of loans may be limited. A limited availability of loans could reduce the amount of attractive investments
for an underlying fund. If market demand for loans increases, the interest paid by loans that an underlying fund holds may decrease. Due
to the possible limited availability of loans in the market at a given time in which an underlying fund can invest, there is a risk that
an underlying fund may not be able to invest a sufficient amount in loans at all times to meet its 80% asset investment requirement (including
borrowings for investment purposes).
Compared
to securities and to certain other types of financial assets, purchases
and sales of loans take relatively longer to settle. This extended settlement process can (i) increase the counterparty credit risk borne
by an underlying fund; (ii) leave an underlying fund unable to timely vote, or otherwise act with respect to, loans it has agreed to purchase;
(iii) delay an underlying fund from realizing the proceeds of a sale of a loan; (iv) inhibit an underlying fund’s ability to re-sell
a loan that it has agreed to purchase if conditions change (leaving an underlying fund more exposed to price fluctuations); (v) prevent
an underlying fund from timely collecting principal and interest payments; and (vi) expose an underlying fund to adverse tax or regulatory
consequences. To the extent the extended loan settlement process gives rise to short-term liquidity needs, such as the need to satisfy
redemption requests, an underlying fund may hold cash, sell investments or temporarily borrow from banks or other lenders. If an underlying
fund undertakes such measures, an underlying fund’s ability to pay redemption proceeds in a timely manner, as well as an underlying
fund’s performance, may be adversely affected.
If
an underlying fund invests in a loan via a participation, an underlying fund
will be exposed to the ongoing counterparty risk of the entity providing exposure to the loan (and, in certain circumstances, such entity’s
credit risk) in addition to the exposure an underlying fund has to the creditworthiness of the borrower. The terms of the participation
may not entitle an underlying fund to all rights of a direct lender under the loan (for example, with respect to consent, voting or enforcement
rights). Therefore, an underlying fund’s rights under a participation interest for a particular loan may be more limited than the
rights of the original lender or an investor who acquires an assignment of that loan. Where an underlying fund invests in a loan via a
participation, an underlying fund generally will have no right of direct
10 Invesco
Income Allocation Fund
recourse
against the borrower or ability to otherwise directly enforce the terms of the loan agreement.
In
certain circumstances, loans may not be deemed to be securities, and
in the event of fraud or misrepresentation by a borrower or an arranger, lenders will not have the protection of the anti-fraud provisions
of the federal securities laws, as would be the case for bonds or stocks. Instead, in such cases, lenders generally rely on the contractual
provisions in the loan agreement itself, and common-law fraud protections under applicable state law.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. In the years following the 2008 financial crisis,
the integrity of LIBOR was increasingly questioned because several banks contributing to its calculation were accused of rate manipulation
and because of a general contraction in the unsecured interbank lending market. As a result, regulators and financial industry working
groups in several jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to
replace LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the
Secured Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other
interbank offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which an underlying fund invests that utilize ARRs will
be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
Additionally, although regulators have generally prohibited banking institutions from entering into new contracts that reference those
USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and
implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy”
USD LIBOR instruments held by an underlying fund could result in losses to an underlying fund.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market
anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if an underlying fund
invests in CLOs that hold loans of uncreditworthy borrowers or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
Covenant
Lite Loans Risk.
Because covenant lite loans contain few or no financial maintenance covenants, covenant lite loans may not include terms that permit the
lender of the loan to monitor the borrower’s financial performance and, if certain criteria are breached, declare a default, which
would allow the lender to restructure the loan or take other action intended to help mitigate losses. As a result, an underlying fund
may experience
relatively
greater difficulty or delays in enforcing its rights on its holdings of covenant lite loans than its holdings of loans or securities with
financial maintenance covenants, which may result in losses to an underlying fund, especially during a downturn in the credit cycle.
High
Yield Debt Securities (Junk Bond) Risk.
An underlying fund’s investments in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated
securities will subject an underlying fund to substantial risk of loss. These securities are considered to be speculative with respect
to the issuer’s ability to pay interest and principal when due and are more susceptible to default or decline in market value due
to adverse economic, regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield
debt securities tend to be very volatile. These securities are less liquid than investment grade debt securities and may be difficult
to sell at a desirable time or price, particularly in times of negative sentiment toward high yield securities.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Subordinated
Debt Risk.
Perpetual subordinated debt is a type of hybrid instrument that has no maturity date for the return of principal and does not need to
be redeemed by the issuer. These investments typically have lower credit ratings and lower priority than other obligations of an issuer
during bankruptcy, presenting a greater risk for nonpayment. This risk increases as the priority of the obligation becomes lower. Payments
on these securities may be subordinated to all existing and future liabilities and obligations of subsidiaries and associated companies
of an issuer. Claims of creditors of such subsidiaries and associated companies will have priority over the issuer and an underlying fund
to the assets of those subsidiaries and associated companies. Additionally, some perpetual subordinated debt does not restrict the ability
of an issuer’s subsidiaries to incur further unsecured indebtedness.
Defaulted
Securities Risk.
Defaulted securities pose a greater risk that principal will not be repaid than non-defaulted securities. An underlying fund will generally
not receive interest payments on defaulted securities and may incur costs to protect its investment. Defaulted securities and any securities
received in an exchange for such securities may be subject to restrictions on resale. Investments in defaulted securities and obligations
of distressed issuers are considered speculative and the prices of these securities may be more volatile than non-defaulted securities.
Unrated
Securities Risk.
Because an underlying fund purchases securities that are not rated by any nationally recognized statistical rating organization, the investment
adviser may internally assign ratings to those securities, after assessing their credit quality and other factors, in categories similar
to those of nationally recognized statistical rating organizations. There can be no assurance, nor is it intended, that the investment
adviser’s credit analysis process is consistent or comparable with the credit analysis process used by a nationally recognized statistical
rating organization. Unrated securities are considered “investment-grade” or “below-investment-grade” if judged
by the investment adviser to be comparable to rated investment- grade or below-investment-grade securities. The investment adviser’s
rating does not constitute a guarantee of the credit quality. In addition, some unrated securities may not have an active trading market
or may trade less actively than rated securities, which means that an underlying fund might have difficulty selling them promptly at an
acceptable price.
Credit
Linked Notes Risk.
Risks of credit linked notes include those risks associated with the underlying reference obligation including but not limited to market
risk, interest rate risk, credit risk, default risk and, in some cases, foreign currency risk. In the case of a credit linked note that
is “funded,” the par amount of the security will represent the maximum loss
11 Invesco
Income Allocation Fund
that
could be incurred on the investment and no leverage is introduced. An investor in a credit linked note bears counterparty risk or the
risk that the issuer of the credit linked note will default or become bankrupt and not make timely payment of principal and interest of
the structured security. Credit linked notes may be less liquid than other investments and therefore harder to dispose of at the desired
time and price. In addition, credit linked notes may be leveraged and, as a result, small changes in the value of the underlying reference
obligation may produce disproportionate losses to an underlying fund.
TBA
Transactions Risk.
TBA transactions involve the risk that the securities received may be less favorable than what was anticipated by an underlying fund when
entering into the TBA transaction. TBA transactions also involve the risk that the counterparty will fail to deliver the securities, exposing
an underlying fund to further losses. Whether or not an underlying fund takes delivery of the securities at the termination date of a
TBA transaction, an underlying fund will nonetheless be exposed to changes in the value of the underlying investments during the term
of the agreement. If an underlying fund sells short TBA mortgages that it does not own and the mortgages increase in value, an underlying
fund may be required to pay a higher price than anticipated to purchase the deliverable mortgages to settle the short sale and thereby
incur a loss. A short position in TBA mortgages poses more risk than holding the same TBA mortgages long. It is possible that the market
value of the mortgage securities an underlying fund holds in long positions will decline at the same time that the market value of the
mortgage securities an underlying fund has sold short increases, thereby magnifying any losses. The more an underlying fund pays to purchase
the mortgage securities sold short, the more it will lose on the transaction, which adversely affects its share price. The loss on a long
position is limited to what an underlying fund originally paid for the TBA mortgage, together with any transaction costs. In short transactions,
there is no limit on how much the price of a security can increase, thus an underlying fund’s exposure is theoretically unlimited.
An underlying fund normally closes a short sale of TBA mortgages that it does not own by purchasing mortgage securities on the open market
and delivering them to the broker. An underlying fund may not always be able to complete or “close out” the short position
by purchasing mortgage securities at a particular time or at an acceptable price. An underlying fund incurs a loss if an underlying fund
is required to buy the deliverable mortgage securities at a time when they have appreciated in value from the date of the short sale.
An underlying fund will incur increased transaction costs associated with selling TBA mortgages short. In addition, taking short positions
results in a form of leverage. As a result, changes in the value of an underlying fund’s investments will have a larger effect on
its share price than if it did not engage in these transactions.
Zero
Coupon or Pay-In-Kind Securities Risk.
Zero coupon and pay-in-kind securities may be subject to greater fluctuation in value and less liquidity in the event of adverse market
conditions than comparably rated securities paying cash interest at regular interest payment periods. Prices on non-cash-paying instruments
may be more sensitive to changes in the issuer’s financial condition, fluctuation in interest rates and market demand/supply imbalances
than cash-paying securities with similar credit ratings, and thus may be more speculative. Investors may purchase zero coupon and pay-in-kind
securities at a price below the amount payable at maturity. Because such securities do not entitle the holder to any periodic payments
of interest prior to maturity, this prevents any reinvestment of interest payments at prevailing interest rates if prevailing interest
rates rise. The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit risk associated
with such instruments and that such investments may represent a higher credit risk than coupon loans. Pay-in-kind securities may have
a potential variability in valuations because their continuing accruals require continuing judgments about the collectability of the deferred
payments and the value of any associated collateral. Special tax considerations are associated with investing in certain lower-grade securities,
such as zero coupon or pay-in-kind securities.
Dollar
Roll Transactions Risk.
Dollar roll transactions occur in connection with TBA transactions and involve the risk that the market value of the securities an underlying
fund is required to purchase may decline below the agreed upon repurchase price of those securities. When an underlying fund uses a dollar
roll transaction, it is also subject to the risk that the other party to the agreement will not be able to perform. If the broker/dealer
to whom an underlying fund sells securities becomes insolvent, an underlying fund’s right to purchase or repurchase securities may
be restricted. Dollar roll transactions add a form of leverage to an underlying fund’s portfolio because an underlying fund makes
a commitment to purchase a security at a future date for an agreed upon price. Leverage may make the Fund’s returns more volatile
and increase the risk of loss. In addition, dollar roll transactions may increase an underlying fund’s portfolio turnover rate because
they generally are rolled over every month. Increased portfolio turnover may result in increased brokerage costs which may lower an underlying
fund’s actual return.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Real estate companies, including REITs or similar structures, tend to be small- and mid-cap
companies and their shares may be more volatile and less liquid than larger companies. The value of investments in real estate related
companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial covenants
related thereto, whether the company carries adequate insurance and environmental factors.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is
privately placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during
periods of market stress. If a significant amount of an underlying fund’s securities become illiquid, an underlying fund may not
be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Issuer
Focus Risk. Although an underlying fund is classified as a diversified
fund, it may focus its investments in a relatively small number of issuers. The greater an underlying fund's exposure to any single investment
or issuer, the greater the losses an underlying fund may experience upon any single economic, market, business, political, regulatory,
or other occurrence. As a result, there may be more fluctuation in the price of an underlying fund's shares.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of an underlying fund’s portfolio may be affected by changes in
the stock markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets
may experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its
12 Invesco
Income Allocation Fund
industry.
To the extent that securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-sized companies,
growth or value stocks, or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting
the market for those types of securities.
Dividend
Risk. As a group, securities that pay high dividends may fall
out of favor with investors and underperform companies that do not pay high dividends. Also, changes in the dividend policies of such
companies and the capital resources available for such companies' dividend payments may affect an underlying fund. There is the possibility
that dividend-paying companies could reduce or eliminate the payment of dividends in the future or an anticipated acceleration of dividends
may not occur. High-dividend stocks may not experience high earnings growth or capital appreciation. An underlying fund’s performance
during a broad market advance could suffer because dividend paying stocks may not experience the same capital appreciation as non-dividend
paying stocks.
Depending
upon market conditions, dividend-paying stocks
that meet an underlying fund’s investment criteria may not
be widely available, or may be highly concentrated in only a few market sectors. This may increase
the volatility of an underlying
fund’s returns and may limit the ability of an underlying
fund to produce current
income while remaining fully diversified.
In addition, the value of dividend-paying common stocks can decline
when interest rates rise, as fixed-income investments become more attractive to investors. Because the potential for interest rates to
rise becomes greater during a low interest rate environment, this risk may be greater in a period of low interest rates.
Foreign
Securities Risk.
The value of an underlying fund's foreign investments may be adversely affected by political and social instability in the home countries
of the issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which an underlying fund could lose its entire investments in a certain market) and the possible adoption of foreign
governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S.
companies, including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud
or corruption. Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies
making it more difficult for an underlying fund’s adviser to evaluate those companies. The laws of certain countries may put limits
on an underlying fund’s ability to recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security,
or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due
to the size of the market or other factors. Changes in political and economic factors in one country or region could adversely affect
conditions in another country or region. Investments in foreign securities may also expose an underlying fund to time-zone arbitrage risk.
At times, an underlying fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse
events that occur in that country or region. Unless an underlying fund has hedged its foreign currency exposure, foreign securities risk
also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign
currency (or other instruments through which an underlying fund has exposure to foreign currencies) to decline in value. Currency exchange
rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. For instance,
currency forward contracts, if used, could reduce performance if there are unanticipated changes in currency exchange rates.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting
in greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede an underlying fund’s ability to evaluate such companies. In addition, certain emerging market countries
may impose material limitations on Public Company Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities,
which can hinder the PCAOB’s ability to engage in independent oversight or inspection of accounting firms located in or operating
in certain emerging markets. There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market countries
may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries have been engaged in programs to sell all or part of their interests
in government-owned or controlled enterprises. However, in certain emerging market countries, the ability of foreign entities to participate
in privatization programs may be limited by local law. There can be no assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Depositary
Receipts Risk. Depositary
receipts involve many of the same risks as those associated with direct investment in foreign securities. In addition, the underlying
issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, are under no obligation to
13 Invesco
Income Allocation Fund
distribute
shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited
securities. An underlying fund may therefore receive less timely information or have less control than if it invested directly in the
foreign issuer.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the issuer in
a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital
structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred
securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s
financial condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable price when it wants to sell them.
In addition, investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities
(this is sometimes referred to as “price arbitrage”), which could interfere with the efficient management of an underlying
fund. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends
for some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in
a small- or mid-cap company, if any gain is realized at all. The relative sizes of companies may change over time as the securities market
changes, and an underlying fund is not required to sell the securities of companies whose market capitalizations have grown or decreased
due to market fluctuations.
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment strategies will yield uncorrelated performance under all market conditions. In addition, the particular mix of
alternative investments in an underlying fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to
the risk that its alternative investments may undergo a correlation shift, resulting in returns that are correlated with the broader market
and/or with an underlying fund’s other alternative investments.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions are subject to market risk as the value or yield of a security at delivery may be more or
less than the purchase price or the yield generally available on securities when delivery occurs. In addition, an underlying fund is subject
to counterparty risk because it relies on the buyer or seller, as the case may be, to consummate the transaction, and failure by the counterparty
to complete the transaction may result in an underlying fund missing the opportunity of obtaining a price or yield considered to be advantageous.
These transactions have a leveraging effect on an underlying fund because an underlying fund commits to purchase securities that it does
not have to pay for until a later date. These investments therefore increase an underlying fund’s overall investment exposure and,
as a result, its volatility. Typically, no income accrues on securities an underlying fund has committed to purchase prior to the time
delivery of the securities is made.
Infrastructure-Related
Companies Risk. An underlying fund will concentrate its investments
in the infrastructure industry. Infrastructure-related companies are subject to a variety of factors that may adversely affect their business
or operations, including costs associated with environmental, governmental and other regulations, high interest costs in connection with
capital construction programs, high leverage, the effects of economic slowdowns, surplus capacity, increased competition, fluctuations
of fuel prices, the effects of energy conservation policies, unfavorable tax laws or accounting policies, and other factors. Infrastructure-related
companies are also affected by environmental damage due to a company’s operations or an accident, difficulty in raising capital
in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets, increased susceptibility to terrorist
acts or political actions, and general changes in market sentiment towards infrastructure assets.
MLP
Risk. An underlying fund invests in securities of MLPs, which
are subject to the following risks:
◾
Limited
Partner Risk. An MLP is a public limited partnership or a limited
liability company taxed as a partnership under the Internal Revenue Code of 1986, as amended (the Code). Although the characteristics
of MLPs closely resemble a traditional limited partnership, a major difference is that MLPs may trade on a public exchange or in the over-the-counter
market. The risks of investing in an MLP are similar to those of investing in a partnership, including more flexible governance structures,
which could result in less protection for investors than investments in a corporation. Investors in an MLP normally would not be liable
for the debts of the MLP beyond the amount that the investor has contributed but investors may not be shielded to the same extent that
a shareholder of a corporation would be. In certain circumstances, creditors of an MLP would have the right to seek return of capital
distributed to a limited partner, which right would continue after an investor sold its investment in the MLP. In addition, MLP distributions
may be reduced by fees and other expenses incurred by the MLP.
◾
Equity
Securities Risk. Investment in MLPs involves risks that differ
from investments in common stock, including risks related to limited control and limited rights to vote on matters affecting the MLP,
risks related to potential conflicts of interest between the MLP and the MLP’s general partner, dilution risks and cash flow risks.
MLP common units can be affected by macro-economic and other factors affecting the stock market in general, expectations of interest rates,
investor sentiment towards MLPs, changes in a particular issuer’s financial condition, or unfavorable or unanticipated poor performance
of a particular issuer. Prices of common units of individual MLPs and other equity securities also can be affected by fundamentals unique
to the partnership or company, including earnings power and coverage ratios. In the event of liquidation, common unit holders are intended
to have a preference to the remaining assets of the issuer over holders of subordinated units. Subordinated units generally do not provide
arrearage rights.
14 Invesco
Income Allocation Fund
◾
Liquidity
Risk. The ability to trade on a public exchange or in the over-the-counter
market provides a certain amount of liquidity not found in many limited partnership investments. However, MLP interests may be less liquid
or trade less frequently than conventional publicly traded securities, and therefore more difficult to trade at desirable times and/or
prices. Where certain MLP securities experience limited trading volumes, the prices of such MLPs may display abrupt or erratic movements
at times and it may be more difficult for an underlying fund to buy and sell significant amounts of such securities without an unfavorable
impact on prevailing market prices. As a result, these securities may be difficult to dispose of at a fair price at the times when the
sub-adviser believes it is desirable to do so. This may affect adversely an underlying fund’s ability to make dividend distributions.
◾
Interest
Rate Risk. MLPs generally are considered interest-rate sensitive
investments and, accordingly, during periods of interest rate volatility these investments may not provide attractive returns.
◾
General
Partner Risk. The holder of the general partner or managing member
interest can be liable in certain circumstances for amounts greater than the amount of the holder’s investment in the general partner
or managing member.
◾
MLP
Tax Risk.
MLPs taxed as partnerships do not pay U.S. federal income tax at the partnership level, subject to the application of certain partnership
audit rules. Rather, each partner is allocated a share of the partnership’s income, gains, losses, deductions and expenses. A change
in current tax law, or a change in the underlying business mix of a given MLP, could result in an MLP being classified as a corporation
for U.S. federal income tax purposes, which would result in such MLP being required to pay U.S. federal income tax on its taxable income.
This classification would have the effect of reducing the amount of cash available for distribution by the MLP. Thus, if any of the MLPs
owned by an underlying fund were treated as a corporation for U.S. federal income tax purposes, it could result in a reduction of the
value of an underlying fund’s investment, and consequently your investment in an underlying fund and lower income. MLPs taxed as
partnerships file a partnership tax return for U.S. federal, state and local income tax purposes and communicate to each investor in such
MLP the investor’s allocable share of the MLP’s income, gains, losses, deductions and expenses via a “Schedule K-1.”
Each year, an underlying fund will send you an annual tax statement (Form 1099) to assist you in completing your federal, state and local
tax returns. An MLP might need to amend its partnership tax return and, in turn, send amended Schedules K-1 to investors in the MLP, such
as an underlying fund. When necessary, an underlying fund will send you a corrected Form 1099 to reflect Schedule K-1 information reclassified
by an MLP, which could, in turn, require you to amend your federal, state or local tax returns.
Additionally,
if an underlying fund were to invest more than 25% of its total
assets in MLPs that are taxed as partnerships this could cause an underlying fund to lose its status as a regulated investment company
under Subchapter M of the Code.
Exchange-Traded
Notes Risk.
Exchange-traded notes are subject to the credit risk of the issuer, and the value of the exchange-traded note may drop due to a downgrade
in the issuer's credit rating, despite the underlying market benchmark or assets remaining unchanged. The value of an exchange-traded
note may also be influenced by time to maturity, level of supply and demand for the exchange-traded note, volatility and lack of liquidity
in the underlying market, changes in the applicable interest rates, and economic, legal, political, or geographic events that affect the
referenced underlying market or assets. Exchange-traded notes are also subject to the risk that the other party to the contract will not
fulfill its contractual obligations, which may cause losses or additional costs to an underlying fund. When an underlying fund invests
in exchange-traded notes it will bear its proportionate share of any fees and expenses borne by the
exchange-traded
note. For certain exchange-traded notes, there may be restrictions on an underlying fund’s right to redeem its investment, which
is meant to be held until maturity.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below. These risks are greater for certain underlying
funds than mutual funds that do not use derivative instruments or that use derivative instruments to a lesser extent than certain underlying
funds to implement their investment strategies.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between an underlying fund and a counterparty. When an underlying fund is owed money on an OTC derivative, an underlying fund
is dependent on the counterparty to pay or, in some cases, deliver the underlying asset, unless an underlying fund can otherwise sell
its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers
and their creditworthiness (and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally.
In addition, in the event that a counterparty becomes bankrupt or insolvent, an underlying fund’s ability to recover the collateral
that an underlying fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange,
an underlying fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a guarantor for each
contractual obligation under such derivatives) for payment on derivative instruments for which an underlying fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in an underlying fund sustaining
a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have
the potential for unlimited loss, regardless
of the size of an underlying fund’s initial investment. Leverage may therefore make
an underlying fund’s returns more volatile
and increase the risk of loss. In certain market conditions, losses
on derivative instruments can grow larger while the value of an underlying fund’s other assets fall, resulting in an underlying
fund’s derivative positions becoming a larger percentage of an underlying fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional investments and an underlying
fund may be unable to sell or exit its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which an underlying fund may be most in need of liquidating its derivative positions. To the extent that an underlying
fund is unable to exit a derivative position because of market illiquidity, an underlying fund may not be able to prevent further losses
of value in its derivatives holdings and the liquidity of an underlying fund and its ability to meet redemption requests may be impaired
to the extent that a substantial portion of an underlying fund’s otherwise liquid assets must be used as margin. Another consequence
of illiquidity is that an underlying fund may be
15 Invesco
Income Allocation Fund
required
to hold a derivative instrument to maturity and take or make delivery of the underlying asset that an underlying fund’s adviser
would otherwise avoid.
◾
Regulatory
Risk. Changes in government regulation of derivative instruments
could affect the character, timing and amount of the Fund’s taxable income or gains, and may limit or prevent the Fund from using
certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to
implement or require the Fund to change its investment strategy.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of an underlying fund’s taxable income or gains, and may limit or prevent an underlying fund from using
certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to
implement or require an underlying fund to change its investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that an underlying fund uses derivatives for hedging or to gain or limit exposure to a particular market or
market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being
hedged or the relevant market or market segment, in which case an underlying fund may not realize the intended benefits. There is also
the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all.
An underlying fund’s use of derivatives may be limited by the requirements for taxation of an underlying fund as a regulated investment
company.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries. Information about certain underlying funds'
investments in a particular market sector or group of industries
is available in their annual and semi-annual reports to shareholders and in their reports on Form N-PORT filed with the SEC.
Geographic
Focus Risk. An underlying fund may from time to time have a substantial
amount of its assets invested in securities of issuers located in a single country or a limited number of countries. If an underlying
fund focuses its investments in this manner, adverse economic, political or social conditions in those countries may have a significant
negative impact on an underlying fund’s investment performance. This risk is heightened if an underlying fund focuses its investments
in emerging market countries or developed countries prone to periods of instability. The Schedule of Investments included in certain underlying
funds annual and semi-annual reports identifies the countries in which certain underlying funds had invested and the level of investment,
as of the date of the reports.
Borrowing
Risk.
Borrowing money to buy securities exposes an underlying fund to leverage because an underlying fund seeks to achieve a return on a capital
base larger than the assets that shareholders have contributed to an underlying fund. Borrowing will cause an underlying fund’s
share price to be more volatile because leverage will exaggerate the effect of any increase or decrease in the value of an underlying
fund’s portfolio securities. An underlying fund may also be required to liquidate positions when it may not be advantageous to do
so in order to repay borrowed money when due. In addition, an underlying fund will incur interest expenses and other fees on borrowed
money. There can be no assurance that an underlying fund’s borrowing strategy will enhance and not reduce the underlying fund’s
returns.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan or other
legislation aimed at addressing financial or economic conditions, the threat of a federal government shutdown, and threats not to increase
or suspend the federal government’s debt limit, may affect investor and consumer confidence, increase volatility in the financial
markets, perhaps suddenly and to a significant degree, result in higher interest rates, and even raise concerns about the U.S. government’s
credit rating and ability to service its debt. Such changes and events may adversely impact an underlying fund’s operations, universe
of potential investment options, and return potential.
Active
Trading Risk. Active trading of an underlying fund’s portfolio
securities may result in high brokerage costs, which may lower an underlying fund’s actual return. Active trading also may increase
the proportion of an underlying fund’s gains that are short term, which are taxed at a higher rate than long term gains.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. There can be no guarantee that the Fund’s Adviser’s
and certain underlying funds’ advisers' investment techniques or investment decisions will produce the desired results. Because
the investment process of the Fund relies heavily on its asset allocation process, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on the Fund’s net asset value. Similarly, because the investment
processes of certain underlying funds rely heavily on their security selection processes, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on certain underlying funds’ net asset values. Additionally,
legislative, regulatory, or tax developments may adversely affect management of the Fund and underlying funds and, therefore, their abilities
to achieve their investment objectives.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other investment portfolios
that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance of the Fund’s day-to-day
management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as successor in interest
to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
16 Invesco
Income Allocation Fund
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
The
Adviser does not receive a management fee from the Fund.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for determining the asset class allocation, underlying fund selections and
target weightings for the Fund:
◾
Jeffrey
Bennett, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2019. From 2016 to 2019, he was associated with OppenheimerFunds, a global asset management firm.
◾
Alessio
de Longis, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 2019. Prior to joining Invesco, Mr. de Longis was associated with OppenheimerFunds, a global asset management firm, since 2004.
The
portfolio managers are assisted by investment professionals from the
Invesco Investment Solutions Team. Members of the team may change from time to time.
The
underlying funds are managed by portfolio managers.
More
information on the Fund's portfolio managers and the portfolio managers
managing the affiliated underlying funds may be found at www.invesco.com/us. The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers'
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category VI Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, monthly.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash
flows. During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments,
the effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience
a current year loss, it may nonetheless distribute prior year capital gains.
17 Invesco
Income Allocation Fund
The
financial highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of
the Fund or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(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(c)
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(d)
|
|
Class
A | ||||||||||||||
|
Year
ended 12/31/22 |
$11.84
|
$0.35
|
$(1.73)
|
$(1.38)
|
$(0.36)
|
$—
|
$(0.36)
|
$10.10
|
(11.78)%
|
$366,254
|
0.37%
|
0.43%
|
3.25%
|
30%
|
|
Year
ended 12/31/21 |
11.37
|
0.34
|
0.51
|
0.85
|
(0.38)
|
—
|
(0.38)
|
11.84
|
7.56
|
458,085
|
0.25
|
0.42
|
2.90
|
16
|
|
Year
ended 12/31/20 |
11.60
|
0.40
|
(0.17)
|
0.23
|
(0.46)
|
(0.00)
|
(0.46)
|
11.37
|
2.33
|
414,703
|
0.25
|
0.43
|
3.65
|
66
|
|
Year
ended 12/31/19 |
10.76
|
0.49
|
1.12
|
1.61
|
(0.53)
|
(0.24)
|
(0.77)
|
11.60
|
15.19
|
434,337
|
0.25
|
0.44
|
4.28
|
14
|
|
Year
ended 12/31/18 |
11.70
|
0.44
|
(0.96)
|
(0.52)
|
(0.42)
|
—
|
(0.42)
|
10.76
|
(4.53)
|
323,945
|
0.25
|
0.45
|
3.86
|
20
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
11.85
|
0.27
|
(1.73)
|
(1.46)
|
(0.28)
|
—
|
(0.28)
|
10.11
|
(12.43)
|
29,588
|
1.12
|
1.18
|
2.50
|
30
|
|
Year
ended 12/31/21 |
11.38
|
0.25
|
0.51
|
0.76
|
(0.29)
|
—
|
(0.29)
|
11.85
|
6.76
|
46,368
|
1.00
|
1.17
|
2.15
|
16
|
|
Year
ended 12/31/20 |
11.61
|
0.31
|
(0.16)
|
0.15
|
(0.38)
|
(0.00)
|
(0.38)
|
11.38
|
1.56
|
57,434
|
1.00
|
1.18
|
2.90
|
66
|
|
Year
ended 12/31/19 |
10.78
|
0.41
|
1.10
|
1.51
|
(0.44)
|
(0.24)
|
(0.68)
|
11.61
|
14.22
|
78,374
|
1.00
|
1.19
|
3.53
|
14
|
|
Year
ended 12/31/18 |
11.71
|
0.35
|
(0.94)
|
(0.59)
|
(0.34)
|
—
|
(0.34)
|
10.78
|
(5.15)
|
110,370
|
1.00
|
1.20
|
3.11
|
20
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 12/31/22 |
11.84
|
0.32
|
(1.72)
|
(1.40)
|
(0.33)
|
—
|
(0.33)
|
10.11
|
(11.91)
|
3,470
|
0.62
|
0.68
|
3.00
|
30
|
|
Year
ended 12/31/21 |
11.38
|
0.31
|
0.50
|
0.81
|
(0.35)
|
—
|
(0.35)
|
11.84
|
7.20
|
5,115
|
0.50
|
0.67
|
2.65
|
16
|
|
Year
ended 12/31/20 |
11.60
|
0.37
|
(0.16)
|
0.21
|
(0.43)
|
(0.00)
|
(0.43)
|
11.38
|
2.17
|
4,975
|
0.50
|
0.68
|
3.40
|
66
|
|
Year
ended 12/31/19 |
10.77
|
0.46
|
1.11
|
1.57
|
(0.50)
|
(0.24)
|
(0.74)
|
11.60
|
14.80
|
6,847
|
0.50
|
0.69
|
4.03
|
14
|
|
Year
ended 12/31/18 |
11.70
|
0.40
|
(0.94)
|
(0.54)
|
(0.39)
|
—
|
(0.39)
|
10.77
|
(4.68)
|
8,601
|
0.50
|
0.70
|
3.61
|
20
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
11.83
|
0.38
|
(1.73)
|
(1.35)
|
(0.38)
|
—
|
(0.38)
|
10.10
|
(11.48)
|
28,227
|
0.12
|
0.18
|
3.50
|
30
|
|
Year
ended 12/31/21 |
11.37
|
0.37
|
0.50
|
0.87
|
(0.41)
|
—
|
(0.41)
|
11.83
|
7.74
|
48,311
|
0.00
|
0.17
|
3.15
|
16
|
|
Year
ended 12/31/20 |
11.60
|
0.42
|
(0.16)
|
0.26
|
(0.49)
|
(0.00)
|
(0.49)
|
11.37
|
2.59
|
49,435
|
0.00
|
0.18
|
3.90
|
66
|
|
Year
ended 12/31/19 |
10.76
|
0.52
|
1.11
|
1.63
|
(0.55)
|
(0.24)
|
(0.79)
|
11.60
|
15.48
|
70,139
|
0.00
|
0.19
|
4.53
|
14
|
|
Year
ended 12/31/18 |
11.70
|
0.47
|
(0.96)
|
(0.49)
|
(0.45)
|
—
|
(0.45)
|
10.76
|
(4.29)
|
57,009
|
0.00
|
0.20
|
4.11
|
20
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
11.83
|
0.38
|
(1.73)
|
(1.35)
|
(0.39)
|
—
|
(0.39)
|
10.09
|
(11.55)
|
93
|
0.11
|
0.16
|
3.51
|
30
|
|
Year
ended 12/31/21 |
11.37
|
0.37
|
0.50
|
0.87
|
(0.41)
|
—
|
(0.41)
|
11.83
|
7.74
|
136
|
0.00
|
0.16
|
3.15
|
16
|
|
Year
ended 12/31/20 |
11.60
|
0.42
|
(0.16)
|
0.26
|
(0.49)
|
(0.00)
|
(0.49)
|
11.37
|
2.59
|
367
|
0.00
|
0.16
|
3.90
|
66
|
|
Year
ended 12/31/19 |
10.77
|
0.52
|
1.10
|
1.62
|
(0.55)
|
(0.24)
|
(0.79)
|
11.60
|
15.37
|
1,712
|
0.00
|
0.16
|
4.53
|
14
|
|
Year
ended 12/31/18 |
11.70
|
0.47
|
(0.95)
|
(0.48)
|
(0.45)
|
—
|
(0.45)
|
10.77
|
(4.20)
|
1,807
|
0.00
|
0.18
|
4.11
|
20
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
11.83
|
0.38
|
(1.73)
|
(1.35)
|
(0.39)
|
—
|
(0.39)
|
10.09
|
(11.51)
|
337
|
0.06
|
0.09
|
3.56
|
30
|
|
Year
ended 12/31/21 |
11.36
|
0.37
|
0.51
|
0.88
|
(0.41)
|
—
|
(0.41)
|
11.83
|
7.83
|
139
|
0.00
|
0.12
|
3.15
|
16
|
|
Year
ended 12/31/20 |
11.60
|
0.45
|
(0.20)
|
0.25
|
(0.49)
|
(0.00)
|
(0.49)
|
11.36
|
2.50
|
10
|
0.00
|
0.14
|
3.90
|
66
|
|
Year
ended 12/31/19 |
10.77
|
0.53
|
1.09
|
1.62
|
(0.55)
|
(0.24)
|
(0.79)
|
11.60
|
15.37
|
187
|
0.00
|
0.13
|
4.53
|
14
|
|
Year
ended 12/31/18 |
11.70
|
0.47
|
(0.95)
|
(0.48)
|
(0.45)
|
—
|
(0.45)
|
10.77
|
(4.20)
|
145
|
0.00
|
0.15
|
4.11
|
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)
|
In
addition to the fees and expenses which the Fund bears directly; the Fund indirectly bears a pro rata share of the fees and expenses of
the underlying funds in which the Fund invests. Because
the
underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees
and expenses incurred indirectly by the Fund will vary.
Estimated
underlying fund expenses are not expenses that are incurred directly by your Fund. They are expenses that are incurred directly by the
underlying funds and are deducted from the value
of
the funds your Fund invests in. The effect of the estimated underlying fund expenses that you bear indirectly is included in your Fund’s
total return. Estimated acquired fund fees from underlying
funds
were 0.42%, 0.45%, 0.51%, 0.52% and 0.56% for the years ended December 31, 2022, 2021, 2020, 2019 and 2018, respectively.
|
|
(d)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
18 Invesco
Income Allocation Fund
Hypothetical Investment and Expense Information
In connection with the
final settlement reached between Invesco and certain of its affiliates with certain regulators, including the New York Attorney General’s
Office, the SEC and the Colorado Attorney General’s Office (the settlement) arising out of certain market timing and unfair pricing
allegations made against Invesco and certain of its affiliates, Invesco and certain of its affiliates agreed, among other things, to disclose
certain hypothetical information regarding investment and expense information to Fund shareholders. The chart below is intended to reflect
the annual and cumulative impact of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s
returns over a 10-year period. The example reflects the following:
◾
You
invest $10,000 in the Fund and hold it for the entire 10-year period;
◾
Your
investment has a 5% return before expenses each year;
◾
The
Fund’s current annual expense ratio includes, if applicable, any contractual fee waiver or expense reimbursement that would apply
for the period for which it was committed;
◾
Hypotheticals
both with and without any applicable initial sales charge applied; and
◾
There
is no sales charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio
for the Fund’s classes for any of the years shown. This is only a hypothetical presentation made to illustrate what expenses and
returns would be under the above scenarios; your actual returns and expenses are likely to differ (higher or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
(1.58%)
|
2.51%
|
6.76%
|
11.19%
|
15.81%
|
20.61%
|
25.62%
|
30.83%
|
36.26%
|
41.91%
|
|
End
of Year Balance |
$9,842.18
|
$10,250.63
|
$10,676.03
|
$11,119.08
|
$11,580.52
|
$12,061.11
|
$12,561.65
|
$13,082.96
|
$13,625.90
|
$14,191.38
|
|
Estimated
Annual Expenses |
$631.99
|
$85.39
|
$88.94
|
$92.63
|
$96.47
|
$100.48
|
$104.65
|
$108.99
|
$113.51
|
$118.22
|
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.15%
|
8.47%
|
12.97%
|
17.66%
|
22.55%
|
27.63%
|
32.93%
|
38.44%
|
44.19%
|
50.17%
|
|
End
of Year Balance |
$10,415.00
|
$10,847.22
|
$11,297.38
|
$11,766.22
|
$12,254.52
|
$12,763.08
|
$13,292.75
|
$13,844.40
|
$14,418.94
|
$15,017.33
|
|
Estimated
Annual Expenses |
$86.76
|
$90.36
|
$94.11
|
$98.02
|
$102.09
|
$106.32
|
$110.74
|
$115.33
|
$120.12
|
$125.10
|
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.60%
|
1.60%
|
1.60%
|
1.60%
|
1.60%
|
1.60%
|
1.60%
|
1.60%
|
0.85%
|
0.85%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.40%
|
6.92%
|
10.55%
|
14.31%
|
18.20%
|
22.21%
|
26.37%
|
30.67%
|
36.09%
|
41.74%
|
|
End
of Year Balance |
$10,340.00
|
$10,691.56
|
$11,055.07
|
$11,430.95
|
$11,819.60
|
$12,221.46
|
$12,636.99
|
$13,066.65
|
$13,608.92
|
$14,173.69
|
|
Estimated
Annual Expenses |
$162.72
|
$168.25
|
$173.97
|
$179.89
|
$186.00
|
$192.33
|
$198.87
|
$205.63
|
$113.37
|
$118.08
|
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.10%
|
1.10%
|
1.10%
|
1.10%
|
1.10%
|
1.10%
|
1.10%
|
1.10%
|
1.10%
|
1.10%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.90%
|
7.95%
|
12.16%
|
16.54%
|
21.08%
|
25.80%
|
30.71%
|
35.81%
|
41.10%
|
46.61%
|
|
End
of Year Balance |
$10,390.00
|
$10,795.21
|
$11,216.22
|
$11,653.66
|
$12,108.15
|
$12,580.37
|
$13,071.00
|
$13,580.77
|
$14,110.42
|
$14,660.73
|
|
Estimated
Annual Expenses |
$112.15
|
$116.52
|
$121.06
|
$125.78
|
$130.69
|
$135.79
|
$141.08
|
$146.58
|
$152.30
|
$158.24
|
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.60%
|
0.60%
|
0.60%
|
0.60%
|
0.60%
|
0.60%
|
0.60%
|
0.60%
|
0.60%
|
0.60%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.40%
|
8.99%
|
13.79%
|
18.80%
|
24.02%
|
29.48%
|
35.18%
|
41.13%
|
47.33%
|
53.82%
|
|
End
of Year Balance |
$10,440.00
|
$10,899.36
|
$11,378.93
|
$11,879.60
|
$12,402.31
|
$12,948.01
|
$13,517.72
|
$14,112.50
|
$14,733.45
|
$15,381.72
|
|
Estimated
Annual Expenses |
$61.32
|
$64.02
|
$66.83
|
$69.78
|
$72.85
|
$76.05
|
$79.40
|
$82.89
|
$86.54
|
$90.35
|
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.58%
|
0.58%
|
0.58%
|
0.58%
|
0.58%
|
0.58%
|
0.58%
|
0.58%
|
0.58%
|
0.58%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.42%
|
9.04%
|
13.85%
|
18.89%
|
24.14%
|
29.63%
|
35.36%
|
41.34%
|
47.59%
|
54.11%
|
|
End
of Year Balance |
$10,442.00
|
$10,903.54
|
$11,385.47
|
$11,888.71
|
$12,414.19
|
$12,962.90
|
$13,535.86
|
$14,134.14
|
$14,758.87
|
$15,411.22
|
|
Estimated
Annual Expenses |
$59.28
|
$61.90
|
$64.64
|
$67.50
|
$70.48
|
$73.59
|
$76.85
|
$80.24
|
$83.79
|
$87.49
|
|
| ||||||||||
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.51%
|
0.51%
|
0.51%
|
0.51%
|
0.51%
|
0.51%
|
0.51%
|
0.51%
|
0.51%
|
0.51%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.49%
|
9.18%
|
14.08%
|
19.21%
|
24.56%
|
30.15%
|
36.00%
|
42.10%
|
48.48%
|
55.15%
|
|
End
of Year Balance |
$10,449.00
|
$10,918.16
|
$11,408.39
|
$11,920.62
|
$12,455.86
|
$13,015.13
|
$13,599.51
|
$14,210.12
|
$14,848.16
|
$15,514.84
|
|
Estimated
Annual Expenses |
$52.14
|
$54.49
|
$56.93
|
$59.49
|
$62.16
|
$64.95
|
$67.87
|
$70.91
|
$74.10
|
$77.43
|
|
| ||||||||||
1
Your
actual expenses may be higher or lower than those shown.
2
The
hypothetical assumes you hold your investment for a full 10 years. Therefore, any applicable deferred sales charge that might apply in
year one for Class C has not been deducted.
19 Invesco
Income Allocation Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Income Allocation Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
INCAL-PRO-1
|
Prospectus
April
28,
2023
Class:
A (OIDAX), C (OIDCX),
R (OIDNX), Y (OIDYX),
R5 (INDFX), R6 (OIDIX)
Invesco
International Diversified Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
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Back
Cover |
Invesco
International Diversified Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is to seek capital appreciation.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 15%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund is a special type of mutual fund known as a “fund of funds” because it primarily invests in other underlying mutual funds.
Those funds are referred to as the “underlying funds.” The underlying funds mainly invest in foreign equity securities, which
are securities of companies organized under the laws of a foreign country, or with a substantial portion of their operations, assets,
revenue or profits from businesses, investments or sales outside the United States or securities traded primarily in foreign securities
markets. Certain underlying funds may invest 100% of their assets in securities of foreign companies. Some underlying funds may invest
in emerging or developing markets as well as in developed markets throughout the world. From time to time an Underlying Fund may place
greater emphasis on investing in one or more particular industries or regions. Under normal market conditions, the Fund will invest in
shares of some or all of the following Invesco global or international funds that were chosen based on the Adviser’s determination
that they could provide capital appreciation:
◾
Invesco
Developing Markets Fund
◾
Invesco
Oppenheimer International Growth Fund
◾
Invesco
International Small-Mid Company Fund
◾
Invesco
International Equity Fund
◾
Invesco
EQV International Equity Fund
The
Fund will typically invest in a minimum of three of the underlying funds
and will not invest more than 50% of its net assets in any single underlying fund. The Adviser may change the weightings in the underlying
funds at any time, without prior approval from or notice to shareholders.
The
Adviser will monitor the markets and allocate assets among the underlying
funds based on changing market or economic conditions and investment opportunities. In determining how much of the Fund’s assets
to invest in an underlying fund, the Adviser will seek to diversify the Fund’s investments internationally and among different investment
styles, larger and smaller market capitalizations and between developed and emerging markets. The Fund may also change its allocations
based on the Adviser’s evaluation of economic factors that it believes are not reflected in particular markets in which one or more
of the underlying funds invest or on current or anticipated changes in currency valuations. The Adviser monitors the underlying fund selections
and in response to changing market or economic conditions, the Adviser may change any or all of the underlying funds, including using
funds that may be created in the future, without prior approval from or notice to shareholders. Although the term “underlying funds”
refers to Invesco Developing Markets Fund, Invesco Oppenheimer International Growth Fund, Invesco International Small-Mid Company Fund,
Invesco International Equity Fund, and Invesco EQV International Equity Fund, for ease of reference, the Fund also uses the term “underlying
funds” to refer to underlying funds that may be used in the future.
1 Invesco
International Diversified Fund
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money market mutual funds in the Invesco family of funds. This will generally
occur at times when the Fund is unable to immediately invest funds received from purchases of Fund shares or from redemptions of other
investments or to maintain liquidity.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. Because the Fund is a fund of funds, the Fund is subject to the risks associated with the underlying funds in which
it invests. The principal risks of investing in the Fund and the underlying funds are:
Fund
of Funds Risk. The Fund’s performance depends on that of
the underlying funds in which it invests. Accordingly, the risks associated with an investment in the Fund include the risks associated
with investments in the underlying funds. The Fund will indirectly pay a proportional share of the fees and expenses of the underlying
funds in which it invests. There are risks that the Fund will vary from its target weightings (if any) in the underlying funds, that the
underlying funds will not achieve their investment objectives, that the underlying funds’ performance may be lower than their represented
asset classes, and that the Fund may withdraw its investments in an underlying fund at a disadvantageous time.
Allocation
Risk.
The Fund’s investment performance depends, in part, on how its assets are allocated among the underlying funds or asset classes.
The Adviser’s evaluations and assumptions regarding the asset classes or the underlying funds in which the Fund invests may be incorrect,
causing the Fund to be invested (or not invested) in one or more asset classes or underlying funds at an inopportune time, which could
negatively affect the Fund’s performance.
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism,
economic crisis or adverse investor sentiment generally. During
a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance
that specific investments held by an underlying fund will rise in value.
Investing
in Stocks Risk.
The value of an underlying fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant
short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have
unexpected negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets
may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for
example
foreign stocks, stocks of small- or mid-cap companies, growth or value stocks, or stocks of companies in a particular industry), fund
share values may fluctuate more in response to events affecting the market for those types of securities.
Foreign
Securities Risk.
An underlying fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation
policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk
of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which an underlying fund could lose its
entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign
companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing
and accounting controls, and may therefore be more susceptible to fraud or corruption. There may be less public information available
about foreign companies than U.S. companies, making it difficult to evaluate those foreign companies. Unless an underlying fund has hedged
its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may
cause the value of securities denominated in such foreign currency (or other instruments through which an underlying fund has exposure
to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging
strategies, if used, are not always successful.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede an underlying fund’s
ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change
quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization
of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country,
protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Geographic
Focus Risk.
An underlying fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single
country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant
negative impact on an underlying fund’s investment performance.
European
Investment Risk. The
Economic and Monetary Union (the “EMU”) of the European Union (the “EU”) requires compliance with restrictions
on inflation rates, deficits, interest rates, debt levels and fiscal and monetary controls, each of which may significantly affect every
country in Europe. Decreasing imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of
the euro, the default or threat of default by an EU member country on its sovereign debt, and
2 Invesco
International Diversified Fund
recessions
in an EU member country may have significant adverse effects
on the economies of EU member countries. Responses to financial
problems by EU countries may not produce the desired results, may limit future growth and economic recovery, or may result in social unrest
or have other unintended consequences. Further defaults or restructurings by governments and other entities of their debt could have additional
adverse effects on economies, financial markets, and asset valuations around the world. A number of countries in Eastern Europe remain
relatively undeveloped and can be particularly sensitive to political and economic developments. Separately, the EU faces issues involving
its membership, structure, procedures and policies. The exit of one or more member states from the EU, such as the recent departure of
the United Kingdom (known as “Brexit”), would place its currency and banking system in jeopardy. The exit by the United Kingdom
or other member states will likely result in increased volatility, illiquidity and potentially lower economic growth in the affected markets,
which will adversely affect an underlying fund’s investments.
Asia
Pacific Region Risk (including Japan).
The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of
the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely
adversely impact the economic performance of other countries in the region. Certain economies in the region may be adversely affected
by increased competition, high inflation rates, undeveloped financial services sectors, currency fluctuations or restrictions, political
and social instability and increased economic volatility.
The
underlying fund’s Japanese investments may be adversely affected by
protectionist trade policies, slow economic activity worldwide, dependence on exports and international trade, increasing competition
from Asia’s other low-cost emerging economies, political and social instability, regional and global conflicts and natural disasters,
as well as by commodity markets fluctuations related to Japan’s limited natural resource supply. The Japanese economy also faces
several other concerns, including a financial system with large levels of nonperforming loans, over-leveraged corporate balance sheets,
extensive cross-ownership by major corporations, a changing corporate governance structure, and large government deficits.
Investments
in companies located or operating in Greater China (normally considered
to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically
associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal
and regulatory uncertainty; nationalization, expropriation, or confiscation of property; difficulty in obtaining information necessary
for investigations into and/or litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; limited legal
remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts, either internal or with other countries;
inflation, currency fluctuations and fluctuations in inflation and interest rates that may have negative effects on the economy and securities
markets of Greater China; and Greater China’s dependency on the economies of other Asian countries, many of which are developing
countries. Events in any one country within Greater China may impact the other countries in the region or Greater China as a whole. Export
growth continues to be a major driver of China’s rapid economic growth. As a result, a reduction in spending on Chinese products
and services, the institution of additional tariffs or other trade barriers (or the threat thereof), including as a result of trade tensions
between China and the United States, or a downturn in any of the economies of China’s key trading partners may have an adverse impact
on the Chinese economy. In addition, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities
exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the underlying
fund. Further, health events, such as the recent coronavirus outbreak, may cause uncertainty and volatility in the Chinese economy, especially
in the consumer discretionary (leisure, retail, gaming, tourism), industrials, and commodities sectors. Additionally, any difficulties
of the Public Company
Accounting
Oversight Board (“PCAOB”) to inspect audit work papers and practices of PCAOB-registered accounting firms in China with respect
to their audit work of U.S. reporting companies may impose significant additional risks associated with investments in China.
Investments
in Chinese companies may be made through a special structure known
as a variable interest entity (“VIE”) that is designed to provide foreign investors, such as the underlying fund, with exposure
to Chinese companies that operate in certain sectors in which China restricts or prohibits foreign investments. Investments in VIEs may
pose additional risks because the investment is made through an intermediary shell company that has entered into service and other contracts
with the underlying Chinese operating company in order to provide investors with exposure to the operating company, and therefore does
not represent equity ownership in the operating company. The value of the shell company is derived from its ability to consolidate the
VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain
economic benefits arising from, the VIE without formal legal ownership. The contractual arrangements between the shell company and the
operating company may not be as effective in providing operational control as direct equity ownership, and a foreign investor’s
(such as the underlying fund’s) rights may be limited, including by actions of the Chinese government which could determine that
the underlying contractual arrangements are invalid. While VIEs are a longstanding industry practice and are well known by Chinese officials
and regulators, historically the structure has not been formally recognized under Chinese law and it is uncertain whether Chinese officials
or regulators will withdraw their acceptance of the structure.
It
is also uncertain whether the contractual arrangements, which may be
subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration
bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts, from which the shell company
derives its value, would likely cause the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent loss, and
in turn, adversely affect the underlying fund’s returns and net asset value.
Certain
securities issued by companies located or operating in Greater China,
such as China A-shares, are subject to trading restrictions and suspensions, quota limitations and sudden changes in those limitations,
and operational, clearing and settlement risks. Additionally, developing countries, such as those in Greater China, may subject the underlying
fund’s investments to a number of tax rules, and the application of many of those rules may be uncertain. Moreover, China has implemented
a number of tax reforms in recent years, and may amend or revise its existing tax laws and/or procedures in the future, possibly with
retroactive effect. Changes in applicable Chinese tax law could reduce the after-tax profits of the underlying fund, directly or indirectly,
including by reducing the after-tax profits of companies in China in which the underlying fund invests. Uncertainties in Chinese tax rules
could result in unexpected tax liabilities for the underlying fund.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries.
Growth
Investing Risk.
If a growth company’s earnings or stock price fails to increase as anticipated, or if its business plans do not produce the expected
results, the value of its securities may decline sharply. Growth companies may be newer or smaller companies that may experience greater
stock price fluctuations and risks of loss than larger, more established companies. Newer growth companies tend to retain a large part
of their earnings for research, development or investments in capital assets. Therefore, they may not pay any dividends for some time.
Growth investing
3 Invesco
International Diversified Fund
has
gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth investing is out of
favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price and the securities
of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may also be more volatile
than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations
and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many
instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially
less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller
companies may be subject to wider price fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable
price when it wants to sell them. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize
a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many
other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Investing
in the Private Fund
Risk. The Private Fund
is not registered under the Investment Company Act of 1940. As
an investor in the Private Fund, an underlying fund does not have all of the protections offered to investors by the Investment Company
Act of 1940. However, the Private Fund is controlled by an underlying fund and managed by OppenheimerFunds, Inc. The Private Fund may
invest substantially all of its assets in a limited number of issuers or a single issuer. To the extent that it does so, the Private Fund
is more subject to the risks associated with and developments affecting such issuers than a fund that invests more widely. In addition,
investments in the Private Fund will be deemed illiquid and therefore subject an underlying fund to liquidity risk.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay an underlying fund or the Fund
the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment
up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of
the underlying asset could result in an underlying fund or the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset, which may make the underlying fund’s or the Fund’s returns
more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the
underlying fund or the Fund may be unable
to
sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions,
during which the underlying fund or the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder
to value, less tax efficient and subject to changing government regulation that could impact the underlying fund’s or the Fund’s
ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for
hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse
market conditions.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. Because the investment process of the Fund relies heavily on its
asset allocation process, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on the Fund’s net asset value. Similarly, because the investment processes of certain underlying funds rely heavily on their
security selection processes, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on certain underlying funds’ net asset values. Additionally, legislative, regulatory, or tax developments may adversely affect
management of the Fund and underlying funds and, therefore, their abilities to achieve their investment objectives.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The Fund has adopted the performance of the
Oppenheimer International Diversified Fund (the predecessor fund) as the result of a reorganization of the predecessor fund into the Fund,
which was consummated after the close of business on May 24, 2019 (the “Reorganization”). Prior to the Reorganization, the
Fund had not yet commenced operations. The
bar chart shows changes in the performance of the predecessor fund and the Fund from year to year as of December 31. The performance table
compares the predecessor fund’s and the Fund’s performance to that of a broad measure of market performance.
The
Fund’s (and the predecessor fund’s) past performance (before and after
taxes) is not necessarily an indication of how the Fund will perform in the future. The returns shown for periods ending
on or prior to May 24, 2019 are those of the Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. 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 after the close of business on May 24, 2019. Class A, Class C, Class R, Class Y and Class R6 shares’ returns
of the Fund will be different from the returns of the predecessor fund as they have different expenses. Class R5 shares’ returns
of the Fund will be different from Class A shares’ returns of the Fund and the predecessor fund as they have different expenses.
Performance for Class A shares has been restated to reflect the Fund’s applicable sales charge.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us.
4 Invesco
International Diversified Fund
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
20.26%
|
|
Worst
Quarter |
March
31, 2020 |
-21.13%
|
Average Annual Total Returns (for the period ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
9/27/2005
|
-29.42%
|
-1.22%
|
3.94%
|
|
Return
After Taxes on Distributions |
|
-31.59
|
-2.35
|
3.31
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
-15.88
|
-0.80
|
3.22
|
|
| ||||
|
Class
C |
9/27/2005
|
-26.52
|
-0.84
|
3.90
|
|
| ||||
|
Class
R |
9/27/2005
|
-25.52
|
-0.35
|
4.26
|
|
| ||||
|
Class
Y |
9/27/2005
|
-25.15
|
0.16
|
4.80
|
|
| ||||
|
Class
R5 |
5/24/2019
|
-25.09
|
0.171
|
4.661
|
|
| ||||
|
Class
R6 |
8/28/2012
|
-25.02
|
0.31
|
5.01
|
|
| ||||
|
MSCI
ACWI ex USA®
Index (Net) (reflects
reinvested
dividends
net of withholding taxes, but reflects no
deduction
for fees, expenses or other taxes) |
|
-16.00
|
0.88
|
3.80
|
|
| ||||
1
Performance shown prior to the inception
date is that of the predecessor fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although
invested in the same portfolio of securities, Class R5 shares' returns of the Fund will be different from Class A shares' returns of the
predecessor fund as they have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
George
R. Evans, CFA |
Portfolio
Manager |
2019
(predecessor fund 2005) |
|
| ||
|
Robert
B. Dunphy, CFA |
Portfolio
Manager |
2023
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek capital appreciation. The Fund’s investment objective may be changed by the Board of
Trustees (the Board) without shareholder approval.
The
Fund is a special type of mutual fund known as a “fund of funds” because
it primarily invests in other underlying mutual funds. Those funds are referred to as the “underlying funds.” The underlying
funds mainly invest
5 Invesco
International Diversified Fund
in foreign
equity securities, which are securities of companies organized under the laws of a foreign country, or with a substantial portion of their
operations, assets, revenue or profits from businesses, investments or sales outside the United States or securities traded primarily
in foreign securities markets. Certain underlying funds may invest 100% of their assets in securities of foreign companies. Some underlying
funds may invest in emerging or developing markets as well as in developed markets throughout the world. From time to time an underlying
fund may place greater emphasis on investing in one or more particular industries or regions. Under normal market conditions, the Fund
will invest in shares of some or all of the following Invesco global or international funds that were chosen based on the Adviser’s
determination that they could provide capital appreciation:
•
Invesco
Developing Markets Fund invests mainly in common stock of issuers in emerging and developing markets throughout the world.
•
Invesco
Oppenheimer International Growth Fund invests mainly in common stocks of growth companies that are domiciled or have their primary operations
outside of the United States.
•
Invesco
International Small-Mid Company Fund invests mainly in common stock of small- and mid-capitalization companies that are domiciled or have
their primary operations outside of the United States.
•
Invesco
International Equity Fund invests mainly in common and preferred stocks of companies that the portfolio managers believe have potential
for earnings or revenue growth and that are either domiciled or have their primary operations outside of the United States.
•
Invesco
EQV International Equity Fund invests mainly in common and preferred stocks of foreign issuers that the portfolio managers believe have
potential for earnings or revenue growth.
The
Fund will typically invest in a minimum of three of the underlying funds
and will not invest more than 50% of its net assets in any single underlying fund. The Adviser may change the weightings in the underlying
funds at any time, without prior approval from or notice to shareholders.
The
Adviser will monitor the markets and allocate assets among the underlying
funds based on changing market or economic conditions and investment opportunities. In determining how much of the Fund’s assets
to invest in an underlying fund, the Adviser will seek to diversify the Fund’s investments internationally and among different investment
styles, larger and smaller market capitalizations and between developed and emerging markets. The Fund may also change its allocations
based on the Adviser’s evaluation of economic factors that it believes are not reflected in particular markets in which one or more
of the underlying funds invest or on current or anticipated changes in currency valuations. The Adviser monitors the underlying fund selections
and in response to changing market or economic conditions, the Adviser may change any or all of the underlying funds, including using
funds that may be created in the future, without prior approval from or notice to shareholders. Although the term “underlying funds”
refers to Invesco Developing Markets Fund, Invesco Oppenheimer International Growth Fund, Invesco International Small-Mid Company Fund,
Invesco International Equity Fund, and Invesco EQV International Equity Fund, for ease of reference, the Fund also uses the term “underlying
funds” to refer to underlying funds that may be used in the future.
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money market mutual funds in the Invesco family of funds. This will generally
occur at times when the Fund is unable to immediately invest funds received from purchases of Fund shares or from redemptions of other
investments or to maintain liquidity.
In
attempting to meet their investment objectives or to manage subscription
and redemption requests, certain underlying funds engage in active and frequent trading of portfolio securities.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different
investment
strategy for defensive purposes. If the Fund’s portfolio managers do so, different factors could affect the Fund’s performance
and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund and the underlying funds are:
Fund
of Funds Risk.
The Fund’s performance depends on that of the underlying funds in which it invests. Accordingly, the risks associated with an investment
in the Fund include the risks associated with investments in the underlying funds. The Fund will indirectly pay a proportional share of
the fees and expenses of the underlying funds in which it invests. There is a risk that the Fund will vary from its target weightings
(if any) in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will
achieve their investment objectives, and their performance may be lower than their represented asset classes. Underlying Funds that are
not affiliated with the Fund may change their portfolio managers, investment objectives, investment strategies, policies or practices
without the approval of the Fund, which may cause the Fund to withdraw its investments therein at a disadvantageous time.
Allocation
Risk. The Fund’s investment performance depends, in part,
on how its assets are allocated among the underlying funds or asset classes. The Adviser’s evaluations and assumptions regarding
the asset classes or the underlying funds in which the Fund invests may be incorrect, causing the Fund to be invested (or not invested)
in one or more asset classes or underlying funds at an inopportune time. The Adviser’s allocation of the Fund’s assets among
asset classes and underlying funds may therefore not produce the desired results and could cause the Fund to perform poorly or underperform
the Fund’s benchmark and other available funds.
◾
Affiliated
Portfolio Risk. In managing the Fund, the Adviser will have authority
to select and substitute underlying funds. The Adviser may be subject to potential conflicts of interest in selecting underlying funds
because the fees paid to the Adviser or its affiliates by some underlying funds for advisory services are higher than the fees paid by
other underlying funds. In addition, the Fund's portfolio managers may also serve as portfolio managers of the underlying funds.
However, the Adviser monitors the investment process to seek to
identify, address and resolve any potential issues and has adopted certain compliance procedures which are designed to address these types
of conflicts.
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment
generally. The value of an underlying fund’s investments may also go up or down due to factors that affect an individual issuer
or a particular industry or sector, such as changes in production costs and competitive conditions within an industry. In addition, natural
or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism,
economic crisis or other events may have a significant impact
on the value of an underlying fund’s investments, as well as the financial markets and global economy generally. Such circumstances
may also
6 Invesco
International Diversified Fund
impact
the ability of the Adviser to effectively implement an underlying fund’s investment strategy. During a general downturn in the financial
markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held
by an underlying fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO)
member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine (and the potential
for further sanctions in response to Russia’s continued military activity)
may escalate.
These and other corresponding events, have had, and could continue
to have, severe negative effects on regional and global economic and financial markets, including increased volatility, reduced liquidity,
and overall uncertainty. The negative impacts may be particularly acute in certain sectors including, but not limited to, energy and financials.
Russia may take additional countermeasures or retaliatory actions (including cyberattacks), which could exacerbate negative consequences
on global financial markets. The duration of the conflict and corresponding sanctions and related events cannot be predicted. The foregoing
may result in a negative impact on Fund performance and the value of an investment in an underlying fund, even beyond any direct investment
exposure an underlying fund may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on an underlying fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of an underlying fund’s portfolio may be affected by changes in
the stock markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets
may experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-sized companies, growth or
value
stocks, or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market
for those types of securities.
Foreign
Securities Risk.
The value of an underlying fund's foreign investments may be adversely affected by political and social instability in the home countries
of the issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which an underlying fund could lose its entire investments in a certain market) and the possible adoption of foreign
governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S.
companies, including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud
or corruption. Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies
making it more difficult for an underlying fund’s adviser to evaluate those companies. The laws of certain countries may put limits
on an underlying fund’s ability to recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security,
or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due
to the size of the market or other factors. Changes in political and economic factors in one country or region could adversely affect
conditions in another country or region. Investments in foreign securities may also expose an underlying fund to time-zone arbitrage risk.
At times, an underlying fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse
events that occur in that country or region. Unless an underlying fund has hedged its foreign currency exposure, foreign securities risk
also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign
currency (or other instruments through which an underlying fund has exposure to foreign currencies) to decline in value. Currency exchange
rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. For instance,
currency forward contracts, if used, could reduce performance if there are unanticipated changes in currency exchange rates.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can
7 Invesco
International Diversified Fund
impede
an underlying fund’s ability to evaluate such companies. In addition, certain emerging market countries may impose material limitations
on PCAOB inspection, investigation and enforcement capabilities, which can hinder the PCAOB’s ability to engage in independent oversight
or inspection of accounting firms located in or operating in certain emerging markets.
There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market countries
may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries have been engaged in programs to sell all or part of their interests
in government-owned or controlled enterprises. However, in certain emerging market countries, the ability of foreign entities to participate
in privatization programs may be limited by local law. There can be no assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Geographic
Focus Risk. An underlying fund may from time to time have a substantial
amount of its assets invested in securities of issuers located in a single country or a limited number of countries. If an underlying
fund focuses its investments in this manner, adverse economic, political or social conditions in those countries may have a significant
negative impact on an underlying fund’s investment performance. This risk is heightened if an underlying fund focuses its investments
in emerging market countries or developed countries prone to periods of instability. The Schedule of Investments included in the underlying
fund's annual and semi-annual reports identifies the countries in which the underlying fund had invested and the level of investment,
as of the date of the reports.
European
Investment Risk. Europe
includes both developed and emerging markets. Most countries in Western Europe, and a number of countries in Eastern Europe, are members
of the EU and the EMU. The EMU, which is authorized to direct monetary policies, including policies related to money supply and interest
rates for the euro, requires compliance by member states with restrictions on inflation rates, deficits, interest rates, debt levels and
other tight fiscal and monetary controls, each of which may significantly affect every country in Europe. Decreasing imports or exports,
changes in governmental or EU regulations on trade, changes in the exchange rate of the euro (the common currency of certain EU countries),
the default or threat of default by an EU member country on its sovereign debt, and/or an economic recession in an EU member country may
have significant adverse effects on the economies of EU member countries and the EU as a whole. In recent years, the European financial
markets have experienced volatility and adverse trends due to concerns about rising government debt levels of several European countries,
including Greece,
Spain,
Ireland, Italy and Portugal. These events have adversely affected the exchange rate of the euro and may continue to significantly affect
every country in Europe, including EU member countries that do not use the euro and non-EU member countries. Responses to the financial
problems by European governments, central banks, and others, including austerity measures and reforms, may not produce the desired results,
may limit future growth and economic recovery, or may result in social unrest or have other unintended consequences. Further defaults
or restructurings by governments and other entities of their debt could have additional adverse effects on economies, financial markets,
and asset valuations around the world. The markets in Eastern Europe remain relatively undeveloped and can be particularly sensitive to
political and economic developments.
The
EU faces issues involving its membership, structure, procedures
and policies. On January 31, 2020, the United Kingdom withdrew from the EU. The country’s departure,
referred to as “Brexit”, sparked depreciation in the
value of the British pound, short term declines in the stock markets and heightened risk of continued economic volatility worldwide. Although
the long-term effects of Brexit are difficult to gauge and cannot be fully known, they could have wide ranging implications for the United
Kingdom’s economy, including: possible inflation or recession, continued depreciation of the pound, or disruption to Britain’s
trading arrangements with the rest of Europe. The United Kingdom is one of Europe’s largest economies; its departure from the EU
also may negatively impact the EU and Europe as a whole, such as by causing volatility within the union, triggering prolonged economic
downturns in certain European countries or sparking additional member states to contemplate departing the EU (thereby perpetuating political
instability in the region). An exit by other member states will likely result in increased volatility, illiquidity and potentially lower
economic growth in the affected markets, which will adversely affect an underlying fund’s investments.
Asia
Pacific Region Risk (including Japan).
The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of
the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely
adversely impact the economic performance of other countries in the region. Certain economies in the region may be adversely affected
by increased competition, high inflation rates, undeveloped financial services sectors, currency fluctuations or restrictions, political
and social instability and increased economic volatility. In addition, the risks of expropriation and/or nationalization of assets, confiscatory
taxation, and armed conflict as a result of religious, ethnic, socio-economic and/or political unrest may adversely affect the value of
the underlying fund’s Asia Pacific investments.
The
underlying fund’s Japanese investments may be adversely affected by
protectionist trade policies, slow economic activity worldwide, dependence on exports and international trade, increasing competition
from Asia’s other low-cost emerging economies, political and social instability, regional and global conflicts and natural disasters,
as well as by commodity markets fluctuations related to Japan’s limited natural resource supply. The Japanese economy also faces
several other concerns, including a financial system with large levels of nonperforming loans, over-leveraged corporate balance sheets,
extensive cross-ownership by major corporations, a changing corporate governance structure, and large government deficits.
Investments
in companies located or operating in Greater China (normally considered
to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically
associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal
and regulatory uncertainty; nationalization, expropriation, or confiscation of property; difficulty in obtaining information necessary
for investigations into and/or litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; limited legal
remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts, either internal or with other countries;
inflation, currency fluctuations and fluctuations in
8 Invesco
International Diversified Fund
inflation
and interest rates that may have negative effects on the economy and securities markets of Greater China; and Greater China’s dependency
on the economies of other Asian countries, many of which are developing countries. Events in any one country within Greater China may
impact the other countries in the region or Greater China as a whole. For example, changes to their political and economic relationships
with mainland China could adversely impact the underlying fund’s investments in Taiwan and Hong Kong. Further, health events, such
as the recent coronavirus outbreak, may cause uncertainty and volatility in the Chinese economy, especially in the consumer discretionary
(leisure, retail, gaming, tourism), industrials, and commodities sectors. Additionally, any difficulties of the PCAOB to inspect audit
work papers and practices of PCAOB-registered accounting firms in China with respect to their audit work of U.S. reporting companies may
impose significant additional risks associated with investments in China.
Investments
in Chinese companies may be made through a special structure known
as a variable interest entity (“VIE”) that is designed to provide foreign investors, such as the underlying fund, with exposure
to Chinese companies that operate in certain sectors in which China restricts or prohibits foreign investments. Investments in VIEs may
pose additional risks because the investment is made through an intermediary shell company that has entered into service and other contracts
with the underlying Chinese operating company in order to provide investors with exposure to the operating company, and therefore does
not represent equity ownership in the operating company. As a result, such investment may limit the rights of an investor with respect
to the underlying Chinese operating company. VIEs allow foreign shareholders to exert a degree of control and obtain economic benefits
arising from the operating company without formal legal ownership. However, the contractual arrangements between the shell company and
the operating company may not be as effective in providing operational control as direct equity ownership, and a foreign investor’s
rights may be limited by, for example, actions of the Chinese government which could determine that the underlying contractual arrangements
on which control of the VIE is based are invalid. The contractual arrangement on which the VIE structure is based would likely be subject
to Chinese law and jurisdiction, which could raise questions about how recourse is sought. Investments through VIEs may be affected by
conflicts of interest and duties between the legal owners of the VIE and the stockholders of the listed holding company, which could adversely
impact the value of investments. Historically, VIEs have not been formally recognized under Chinese law. Recently, the Chinese government
provided new guidance to and placed restrictions on China-based companies raising capital offshore, including through VIEs, and investors
face uncertainty about future actions by the Chinese government that could significantly affect the operating company’s financial
performance and the enforceability of the contractual arrangements underlying the VIE structure.
Certain
securities issued by companies located or operating in Greater China,
such as China A-shares, are subject to trading restrictions and suspensions, quota limitations and sudden changes in those limitations,
and operational, clearing and settlement risks. Significant portions of the Chinese securities markets may become rapidly illiquid, as
Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option
in response to market volatility and other events. The liquidity of Chinese securities may shrink or disappear suddenly and without warning
as a result of adverse economic, market or political events, or adverse investor perceptions, whether or not accurate. Export growth continues
to be a major driver of China’s rapid economic growth. As a result, a reduction in spending on Chinese products and services, the
institution of tariffs or other trade barriers (or the threat thereof), or a downturn in any of the economies of China’s key trading
partners may have an adverse impact on the Chinese economy. The ongoing trade dispute and imposition of tariffs between China and the
United States continues to introduce uncertainty into the Chinese economy and may result in reductions in international trade, the oversupply
of certain manufactured goods, substantial price reductions of goods and possible failure of
individual
companies and/or large segments of China’s export industry, which could have a negative impact on the underlying fund’s performance.
Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be imposed or other
escalating actions may be taken in the future. In addition, actions by the U.S. government, such as delisting of certain Chinese companies
from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities
held by the underlying fund.
Additionally,
developing countries, such as those in Greater China, may subject
the underlying fund’s investments to a number of tax rules, and the application of many of those rules may be uncertain. Moreover,
China has implemented a number of tax reforms in recent years, and may amend or revise its existing tax laws and/or procedures in the
future, possibly with retroactive effect. Changes in applicable Chinese tax law could reduce the after-tax profits of the underlying fund,
directly or indirectly, including by reducing the after-tax profits of companies in China in which the underlying fund invests. Chinese
taxes that may apply to the underlying fund’s investments include income tax or withholding tax on dividends, interest or gains
earned by the underlying fund, business tax and stamp duty. Uncertainties in Chinese tax rules could result in unexpected tax liabilities
for the underlying fund.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries. Information about an underlying fund's investment in a market sector or group of industries is available in its
annual and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the SEC.
Growth
Investing Risk. Growth companies are companies whose earnings
and stock prices are expected to grow at a faster rate than the overall market. If a growth company’s earnings or stock price fails
to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline sharply.
Growth companies can be new or established companies that may be entering a growth cycle in their business and therefore may experience
greater stock price fluctuations and risks of loss than larger, more established companies. Their anticipated growth may come from developing
new products or services or from expanding into new or growing markets. Growth companies may be applying new technologies, new or improved
distribution methods or new business models that could enable them to capture an important or dominant market position. They may have
a special area of expertise or the ability to take advantage of changes in demographic or other factors in a more profitable way. Newer
growth companies generally tend to invest a large part of their earnings in research, development or capital assets. Although newer growth
companies may not pay any dividends for some time, their stocks may be valued because of their potential for price increases. Growth investing
has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth investing is out
of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price and the securities
of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may also be more volatile
than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may
9 Invesco
International Diversified Fund
be more
volatile and less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings
expectations and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes
and in many instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is
substantially less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities
of smaller companies may be subject to wider price fluctuations and it might be harder for an underlying fund to dispose of its holdings
at an acceptable price when it wants to sell them. In addition, investors might seek to trade Fund shares based on their knowledge or
understanding of the value of smaller company securities (this is sometimes referred to as “price arbitrage”), which could
interfere with the efficient management of an underlying fund. Since small- and mid-cap companies typically reinvest a high proportion
of their earnings in their business, they may not pay dividends for some time, particularly if they are newer companies. It may take a
substantial period of time to realize a gain on an investment in a small- or mid-cap company, if any gain is realized at all. The relative
sizes of companies may change over time as the securities market changes, and an underlying fund is not required to sell the securities
of companies whose market capitalizations have grown or decreased due to market fluctuations.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the issuer in
a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital
structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred
securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s
financial condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Convertible
Securities Risk.
The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the
value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be
able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or
the market’s perception of the issuer’s creditworthiness. Convertible securities can be converted into or exchanged for a
set amount of common stock of an issuer within a particular period of time at a specified price or according to a price formula. Convertible
debt securities pay interest and convertible preferred stocks pay dividends until they mature or are converted, exchanged or redeemed.
Some convertible debt securities may be considered “equity equivalents” because of the feature that makes them convertible
into common stock. Since a convertible security derives a portion of its value from the common stock into which it may be converted, a
convertible security is also subject to the same types of market and issuer risks that
apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events.
These convertible securities are subject to an increased risk of loss and are generally subordinate in rank to other debt obligations
of the issuer. Convertible securities may be rated below investment grade and therefore considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
Rights
and Warrants Risk.
Rights and warrants may be purchased directly or acquired as part of other securities. Warrants are options to purchase equity securities
at a specific price during a specific period of time. The price of a warrant does not necessarily move parallel to, and is
generally
more volatile than, the price of the underlying security. Warrants may be significantly less valuable or worthless on their expiration
date and may also be postponed or terminated early, resulting in a partial or total loss. Rights are similar to warrants, but normally
have a short duration and are distributed directly by the issuer to its shareholders. Rights and warrants have no voting rights, receive
no dividends and have no rights with respect to the assets of the issuer. Warrants and rights are highly volatile and, therefore, more
susceptible to sharp declines in value than the underlying security might be. The market for rights or warrants may be very limited and
it may be difficult to sell them promptly at an acceptable price.
Depositary
Receipts Risk. Depositary
receipts involve many of the same risks as those associated with direct investment in foreign securities. In addition, the underlying
issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute
shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited
securities. An underlying fund may therefore receive less timely information or have less control than if it invested directly in the
foreign issuer.
Investing
in the Private Fund
Risk. The Private Fund
is not registered under the Investment Company Act of 1940. As
an investor in the Private Fund, an underlying fund does not have all of the protections offered to investors by the Investment Company
Act of 1940. However, the Private Fund is controlled by an underlying fund and managed by OppenheimerFunds, Inc. The Private Fund may
invest substantially all of its assets in a limited number of issuers or a single issuer. To the extent that it does so, the Private Fund
is more subject to the risks associated with and developments affecting such issuers than a fund that invests more widely. In addition,
investments in the Private Fund will be deemed illiquid and therefore subject an underlying fund to liquidity risk.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. If an issuer seeks to restructure the terms of its borrowings
or an underlying fund is required to seek recovery upon a default in the payment of interest or the repayment of principal, an underlying
fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s perception of such strength or
in the credit rating of the issuer or the security may affect the value of debt securities. An underlying fund’s adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan or other
legislation aimed at addressing financial or economic conditions, the threat of a federal government shutdown, and threats not to increase
or suspend the federal government’s debt limit, may affect investor and consumer confidence,
10 Invesco
International Diversified Fund
increase
volatility in the financial markets, perhaps suddenly and to a significant degree, result in higher interest rates, and even raise concerns
about the U.S. government’s credit rating and ability to service its debt. Such changes and events may adversely impact an underlying
fund’s operations, universe of potential investment options, and return potential.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and an underlying fund may be unable to dispose of the securities at a desirable time or price.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is
privately placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during
periods of market stress. If a significant amount of an underlying fund’s securities become illiquid, an underlying fund may not
be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between an underlying fund and a counterparty. When an underlying fund is owed money on an OTC derivative, an underlying fund
is dependent on the counterparty to pay or, in some cases, deliver the underlying asset, unless an underlying fund can otherwise sell
its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers
and their creditworthiness (and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally.
In addition, in the event that a counterparty becomes bankrupt or insolvent, an underlying fund’s ability to recover the collateral
that an underlying fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange,
an underlying fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a guarantor for each
contractual obligation under such derivatives) for payment on derivative instruments for which an underlying fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in an underlying fund sustaining
a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have
the potential for unlimited loss, regardless
of the size of an underlying fund’s initial investment. Leverage may therefore make
an underlying fund’s returns more volatile
and increase the risk of loss. In certain market conditions, losses
on derivative instruments can grow larger while the value of an underlying fund’s other assets fall, resulting in an underlying
fund’s derivative positions becoming a larger percentage of an underlying fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often
financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and an underlying fund may be unable to sell or exit its derivative positions
at a desirable time or price. This risk may be more acute under adverse market conditions, during which an underlying fund may be most
in need of liquidating its derivative positions. To the extent that an underlying fund is unable to exit a derivative position because
of market illiquidity, an underlying fund may not be able to prevent further losses of value in its derivatives holdings and the liquidity
of an underlying fund and its ability to meet redemption requests may be impaired to the extent that a substantial portion of an underlying
fund’s otherwise liquid assets must be used as margin. Another consequence of illiquidity is that an underlying fund may be required
to hold a derivative instrument to maturity and take or make delivery of the underlying asset that an underlying fund’s adviser
would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency contracts
are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses from changes
in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency movements
will not be accurately predicted or do not correspond accurately to changes in the value of an underlying fund's holdings, which could
result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated changes
in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of the currency
increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. An underlying fund may be disadvantaged if it is prohibited from executing a trade outside the daily
permissible price movement.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of an underlying fund’s taxable income or gains, and may limit or prevent an underlying fund from using
certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to
implement or require an underlying fund to change its investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that an underlying fund uses derivatives for hedging or to gain or limit exposure to a particular market or
market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being
hedged or the relevant market or market segment, in which case an underlying fund may not realize the intended benefits. There is also
the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all.
An underlying fund’s use of derivatives may be limited by the requirements for taxation of an underlying fund as a regulated investment
company.
Active
Trading Risk. Active trading of an underlying fund’s portfolio
securities may result in high brokerage costs, which may lower an
11 Invesco
International Diversified Fund
underlying
fund’s actual return. Active trading also may increase the proportion of an underlying fund’s gains that are short term, which
are taxed at a higher rate than long term gains.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. There can be no guarantee that the Fund’s Adviser’s
and certain underlying funds’ advisers' investment techniques or investment decisions will produce the desired results. Because
the investment process of the Fund relies heavily on its asset allocation process, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on the Fund’s net asset value. Similarly, because the investment
processes of certain underlying funds rely heavily on their security selection processes, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on certain underlying funds’ net asset values. Additionally,
legislative, regulatory, or tax developments may adversely affect management of the Fund and underlying funds and, therefore, their abilities
to achieve their investment objectives.
More
Information About the Underlying Funds
The
following is a summary description of the underlying funds in which the
Fund primarily invests. References to “the Fund” in this section refer to the respective underlying fund.
Invesco
Developing Markets Fund
The
Fund mainly invests in common stocks of issuers in developing and emerging
markets throughout the world and at times it may invest up to 100% of its total assets in foreign securities. Under normal market conditions,
the Fund will invest at least 80% of its net assets, plus borrowings for investment purposes, in equity securities of issuers whose principal
activities are in a developing market, i.e. are in a developing market or are economically tied to a developing market country, and in
derivatives and other instruments that have economic characteristics similar to such securities. The Fund will invest in at least three
developing markets.
The
Fund focuses on companies with above-average earnings growth. In
general, countries may be considered developing or emerging markets if they are included in any one of the Morgan Stanley Capital International
(MSCI) emerging markets indices or excluded from an index that captures representation across developed market countries, classified as
a developing or emerging market, or classified under a similar or corresponding classification, by organizations such as the World Bank
and the International Monetary Fund, or have economies, industries and stock markets with similar characteristics as such countries. For
purposes of the Fund’s investments, a determination that an issuer is economically tied to a developing market country is based
on factors including, but not limited to, geographic location of its primary trading markets, location of its assets, its domicile or
its principal offices, or whether it receives revenues from a developing market. Such a determination can also be based, in whole or in
part, on inclusion of an issuer or its securities in an index representative of developing or emerging markets, or on its “country
of risk” being a developing market country as determined by a third party service provider such as Bloomberg.
The
Fund may invest directly in certain eligible China A Shares through Stock
Connect (a securities trading and clearing program designed to achieve mutual stock market access between the People’s Republic
of China (PRC) and Hong Kong), or, for operational efficiency and regulatory considerations, through an investment in a private investment
vehicle organized under Delaware law (the “Private Fund”). The Private Fund may invest in companies established or operating
in, or with significant exposure to, the PRC or other developing markets countries. The Private Fund’s
managing
member, OppenheimerFunds, Inc., has full and exclusive discretionary authority to manage the day-to-day operations of the Private Fund
and to invest its assets. The Fund’s investment in the Private Fund may vary based on the portfolio manager’s use of different
types of investments that provide exposure to Chinese securities (through Stock Connect). Since the Fund may invest a portion of its assets
in the Private Fund, the Fund may be considered to be investing indirectly in such securities through the Private Fund. The Fund can invest
in common and preferred stocks and debt securities of U.S. companies. It can also hold U.S. corporate and government debt securities for
defensive and liquidity purposes. In addition to common and preferred stocks, the Fund can invest in other equity or “equity equivalents”
securities such as convertible securities, rights or warrants. The Fund may purchase American Depositary Shares (ADS) as part of American
Depositary Receipt (ADR) issuances. Under normal market conditions, the Fund currently does not expect to invest a significant amount
of its assets in securities of U.S. issuers or debt of any issuer. The Fund may invest in illiquid or thinly traded securities. The Fund
may also invest in securities that are subject to resale restrictions such as those contained in Rule 144A promulgated under the Securities
Act of 1933, as amended.
Invesco
Oppenheimer International Growth Fund
The
Fund mainly invests in the common stock of growth companies that are
domiciled or have their primary operations outside of the United States. The Fund may invest 100% of its assets in securities of foreign
companies. The Fund may invest in emerging markets (i.e., those that are generally in the early stages of their industrial cycles) as
well as in developed markets throughout the world. From time to time the Fund may place greater emphasis on investing in one or more particular
regions such as Asia or Europe. Under normal market conditions the Fund will invest at least 65% of its total assets in common and preferred
stocks of issuers in at least three different countries outside of the United States, and emphasize investments in common stocks of issuers
that the portfolio managers consider to be “growth” companies.
The
Fund does not limit its investments to issuers within a specific market
capitalization range and at times may invest a substantial portion of its assets in one or more particular capitalization ranges. The
Fund can also buy preferred stocks, securities convertible into common stock and other securities having equity features.
Invesco
International Small-Mid Company Fund
The
Fund invests mainly in common stock of small- and mid-cap companies
that are domiciled, or have their primary operations, outside the United States. Under normal market conditions, the Fund will invest
at least 80% of its net assets, plus borrowings for investment purposes, in equity securities of small- and mid-cap companies, and in
derivatives and other instruments that have economic characteristics similar to such securities. The Fund considers small- and mid-cap
companies to be those having a market capitalization in the range of the MSCI ACWI ex USA SMID Cap Index. The capitalization range of
the index is subject to change at any time due to market activity or changes in its composition. The range of the index generally widens
over time and is reconstituted periodically to preserve its market cap characteristics. The Fund will invest at least 65% of its total
assets in foreign securities.
Invesco
International Equity Fund
Under
normal market conditions, the Fund will invest at least 80% of its net
assets, plus borrowings for investment purposes, in equity securities, and in derivatives and other instruments that have economic characteristics
similar to such securities. The Fund will invest in common and preferred stocks of issuers in at least five different countries outside
the United States, or may use depositary receipts to get such investment exposure. The Fund may invest 100% of its assets in foreign companies.
The
Fund can invest in any country, including developed or emerging market
countries, i.e., those that are generally in the early stages of their industrial cycles. From time to time, the Fund may place greater
emphasis on investing in one or more particular regions, such as Asia or Europe. The
12 Invesco
International Diversified Fund
Fund
may invest up to 10% of its total assets in the securities of U.S. issuers. The Fund invests primarily in securities of issuers that are
considered by the Fund’s portfolio managers to have potential for earnings or revenue growth. The Fund does not limit its investments
to issuers within a specific market capitalization range and at times may invest a substantial portion of its assets in one or more particular
capitalization ranges. The Fund may invest up to 10% of its net assets in debt securities or convertible securities. The portfolio managers’
strategy primarily
focuses on identifying issuers that they believe have a strong
“EQV”
profile. The portfolio managers’
EQV investment approach focuses on Earnings, demonstrated by sustainable
earnings growth; Quality,
demonstrated by efficient capital allocation;
and Valuation,
demonstrated by attractive prices.
Invesco
EQV International Equity Fund
The
Fund invests, under normal circumstances, at least 80% of its net assets,
plus borrowings for investment purposes, in equity securities, and in derivatives and other instruments that have economic characteristics
similar
to such securities. The Fund invests primarily in equity securities (including depositary receipts) of foreign issuers. The principal types of equity securities in which the Fund invests are common and preferred stock. The Fund’s common stock investments also include China A-shares (shares of companies based in mainland China that trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange). Under normal circumstances, the Fund will provide exposure to investments that are economically tied to at least three different countries outside of the U.S. The Fund may also invest up to 1.25 times the amount of the exposure to emerging markets countries in the MSCI ACWI ex USA® Index. Emerging market countries are those that are generally in the early stages of their industrial cycles. The Fund invests primarily in securities of issuers that are considered by the Fund’s portfolio managers to have potential for earnings or revenue growth. The Fund invests primarily in the securities of large-capitalization issuers and may invest a significant amount of its net assets in the securities of mid-capitalization issuers.
to such securities. The Fund invests primarily in equity securities (including depositary receipts) of foreign issuers. The principal types of equity securities in which the Fund invests are common and preferred stock. The Fund’s common stock investments also include China A-shares (shares of companies based in mainland China that trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange). Under normal circumstances, the Fund will provide exposure to investments that are economically tied to at least three different countries outside of the U.S. The Fund may also invest up to 1.25 times the amount of the exposure to emerging markets countries in the MSCI ACWI ex USA® Index. Emerging market countries are those that are generally in the early stages of their industrial cycles. The Fund invests primarily in securities of issuers that are considered by the Fund’s portfolio managers to have potential for earnings or revenue growth. The Fund invests primarily in the securities of large-capitalization issuers and may invest a significant amount of its net assets in the securities of mid-capitalization issuers.
The
portfolio managers’ strategy primarily focuses on identifying issuers that
they believe have a strong “EQV” profile. The portfolio managers’ EQV investment approach focuses on Earnings, demonstrated
by sustainable earnings growth; Quality, demonstrated by efficient capital allocation; and Valuation, demonstrated by attractive prices.
Each
of Invesco Developing Markets Fund, Invesco International Equity Fund
and Invesco EQV International Equity Fund has the following as part of its investment strategy.
As
part of the Fund’s investment process to implement its investment strategy
in pursuit of its investment objective, the Fund’s portfolio managers may also consider both qualitative and quantitative environmental,
social and governance (“ESG”) factors they believe to be material to understand an issuer’s fundamentals, assess whether
any ESG factors pose a material financial risk or opportunity to the issuer and determine whether such risks are appropriately reflected
in the issuer’s valuation. This analysis may involve the use of third-party research as well as proprietary research. Consideration
of ESG factors is just one component of the portfolio managers' assessment of issuers eligible for investment and not necessarily determinative
to an investment decision. Therefore, the Fund’s portfolio managers may still invest in securities of issuers that may be viewed
as having a high ESG risk profile. The ESG factors considered by the Fund’s portfolio managers may change over time, one or more
factors may not be relevant with respect to all issuers eligible for investment and ESG considerations may not be applied to each issuer
or Fund investment.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The
Adviser, as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with
certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to
provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
The
Adviser does not receive a management fee from the Fund.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
George
R. Evans, CFA, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s
13 Invesco
International Diversified Fund
operations,
Mr. Evans managed the predecessor fund since 2005 and was associated with OppenheimerFunds, a global asset management firm, since 1990.
◾
Robert
B. Dunphy, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 2019. Prior to joining Invesco, Mr. Dunphy was associated with OppenheimerFunds, a global asset management firm, since 2004.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
14 Invesco
International Diversified Fund
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the Fund or
predecessor fund or a class of Fund or predecessor fund shares. The financial highlights table is intended to help you understand the
Fund’s and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund
share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund (assuming reinvestment of all dividends and distributions). The information
for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting
firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual report, which is available
upon request. The information for fiscal years ended prior to May 24, 2019 has been audited by the predecessor fund’s auditor.
|
|
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(c)
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed(d)
|
Ratio
of net
investment
income
(loss)
to
average
net
assets |
Portfolio
turnover
(e)
|
|
Class
A | ||||||||||||||
|
Year
ended 12/31/22 |
$21.53
|
$0.05
|
$(5.49)
|
$(5.44)
|
$(0.06)
|
$(2.01)
|
$(2.07)
|
$14.02
|
(25.32)%
|
$838,141
|
0.44%
|
0.44%
|
0.26%
|
15%
|
|
Year
ended 12/31/21 |
22.41
|
0.06
|
0.77
|
0.83
|
(0.11)
|
(1.60)
|
(1.71)
|
21.53
|
3.89
|
1,337,605
|
0.42
|
0.42
|
0.26
|
20
|
|
Year
ended 12/31/20 |
18.88
|
(0.01)
|
3.79
|
3.78
|
(0.19)
|
(0.06)
|
(0.25)
|
22.41
|
20.56
|
1,403,095
|
0.44
|
0.44
|
(0.04)
|
12
|
|
Eight
months ended 12/31/19 |
18.00
|
0.14
|
1.14
|
1.28
|
(0.18)
|
(0.22)
|
(0.40)
|
18.88
|
7.16
|
1,279,901
|
0.44(f)
|
0.44(f)
|
1.16(f)
|
5
|
|
Year
ended 04/30/19 |
18.47
|
0.13
|
(0.47)
|
(0.34)
|
(0.13)
|
—
|
(0.13)
|
18.00
|
(1.73)
|
1,226,049
|
0.45
|
0.45
|
0.76
|
7
|
|
Year
ended 04/30/18 |
15.75
|
0.08
|
2.71
|
2.79
|
(0.07)
|
—
|
(0.07)
|
18.47
|
17.73
|
1,406,336
|
0.47
|
0.48
|
0.48
|
30
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
20.49
|
(0.08)
|
(5.21)
|
(5.29)
|
(0.06)
|
(2.01)
|
(2.07)
|
13.13
|
(25.88)
|
82,628
|
1.19
|
1.19
|
(0.49)
|
15
|
|
Year
ended 12/31/21 |
21.46
|
(0.11)
|
0.74
|
0.63
|
—
|
(1.60)
|
(1.60)
|
20.49
|
3.11
|
164,886
|
1.17
|
1.17
|
(0.49)
|
20
|
|
Year
ended 12/31/20 |
18.24
|
(0.14)
|
3.61
|
3.47
|
(0.19)
|
(0.06)
|
(0.25)
|
21.46
|
19.58
|
211,223
|
1.19
|
1.19
|
(0.79)
|
12
|
|
Eight
months ended 12/31/19 |
17.48
|
0.05
|
1.11
|
1.16
|
(0.18)
|
(0.22)
|
(0.40)
|
18.24
|
6.68
|
282,376
|
1.19(f)
|
1.19(f)
|
0.40(f)
|
5
|
|
Year
ended 04/30/19 |
17.92
|
0.00
|
(0.44)
|
(0.44)
|
—
|
—
|
—
|
17.48
|
(2.46)
|
417,155
|
1.20
|
1.20
|
0.01
|
7
|
|
Year
ended 04/30/18 |
15.34
|
(0.05)
|
2.63
|
2.58
|
—
|
—
|
—
|
17.92
|
16.82
|
480,204
|
1.22
|
1.23
|
(0.27)
|
30
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 12/31/22 |
21.13
|
0.00
|
(5.38)
|
(5.38)
|
(0.06)
|
(2.01)
|
(2.07)
|
13.68
|
(25.52)
|
123,943
|
0.69
|
0.69
|
0.01
|
15
|
|
Year
ended 12/31/21 |
22.02
|
0.00
|
0.76
|
0.76
|
(0.05)
|
(1.60)
|
(1.65)
|
21.13
|
3.62
|
179,362
|
0.67
|
0.67
|
0.01
|
20
|
|
Year
ended 12/31/20 |
18.61
|
(0.05)
|
3.71
|
3.66
|
(0.19)
|
(0.06)
|
(0.25)
|
22.02
|
20.21
|
196,106
|
0.69
|
0.69
|
(0.29)
|
12
|
|
Eight
months ended 12/31/19 |
17.77
|
0.11
|
1.13
|
1.24
|
(0.18)
|
(0.22)
|
(0.40)
|
18.61
|
7.03
|
187,607
|
0.69(f)
|
0.69(f)
|
0.90(f)
|
5
|
|
Year
ended 04/30/19 |
18.23
|
0.09
|
(0.46)
|
(0.37)
|
(0.09)
|
—
|
(0.09)
|
17.77
|
(1.96)
|
200,643
|
0.70
|
0.70
|
0.51
|
7
|
|
Year
ended 04/30/18 |
15.56
|
0.04
|
2.66
|
2.70
|
(0.03)
|
—
|
(0.03)
|
18.23
|
17.38
|
215,588
|
0.72
|
0.73
|
0.23
|
30
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
21.83
|
0.09
|
(5.57)
|
(5.48)
|
(0.09)
|
(2.01)
|
(2.10)
|
14.25
|
(25.15)
|
871,554
|
0.19
|
0.19
|
0.51
|
15
|
|
Year
ended 12/31/21 |
22.71
|
0.12
|
0.78
|
0.90
|
(0.18)
|
(1.60)
|
(1.78)
|
21.83
|
4.17
|
1,823,128
|
0.17
|
0.17
|
0.51
|
20
|
|
Year
ended 12/31/20 |
19.10
|
0.04
|
3.84
|
3.88
|
(0.21)
|
(0.06)
|
(0.27)
|
22.71
|
20.83
|
2,019,871
|
0.19
|
0.19
|
0.21
|
12
|
|
Eight
months ended 12/31/19 |
18.17
|
0.17
|
1.16
|
1.33
|
(0.18)
|
(0.22)
|
(0.40)
|
19.10
|
7.37
|
2,349,592
|
0.17(f)
|
0.19(f)
|
1.43(f)
|
5
|
|
Year
ended 04/30/19 |
18.65
|
0.18
|
(0.48)
|
(0.30)
|
(0.18)
|
—
|
(0.18)
|
18.17
|
(1.41)
|
2,386,585
|
0.16
|
0.20
|
1.05
|
7
|
|
Year
ended 04/30/18 |
15.91
|
0.13
|
2.73
|
2.86
|
(0.12)
|
—
|
(0.12)
|
18.65
|
18.00
|
1,968,444
|
0.22
|
0.23
|
0.73
|
30
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
21.61
|
0.10
|
(5.51)
|
(5.41)
|
(0.11)
|
(2.01)
|
(2.12)
|
14.08
|
(25.09)
|
28
|
0.10
|
0.10
|
0.60
|
15
|
|
Year
ended 12/31/21 |
22.50
|
0.15
|
0.78
|
0.93
|
(0.22)
|
(1.60)
|
(1.82)
|
21.61
|
4.32
|
73
|
0.07
|
0.07
|
0.61
|
20
|
|
Year
ended 12/31/20 |
18.93
|
0.07
|
3.80
|
3.87
|
(0.24)
|
(0.06)
|
(0.30)
|
22.50
|
20.96
|
24
|
0.05
|
0.05
|
0.35
|
12
|
|
Period
ended 12/31/19(g)
|
17.05
|
0.16
|
2.12
|
2.28
|
(0.18)
|
(0.22)
|
(0.40)
|
18.93
|
13.42
|
11
|
0.07(f)
|
0.07(f)
|
1.52(f)
|
5
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
21.94
|
0.11
|
(5.58)
|
(5.47)
|
(0.13)
|
(2.01)
|
(2.14)
|
14.33
|
(25.02)
|
428,285
|
0.04
|
0.04
|
0.66
|
15
|
|
Year
ended 12/31/21 |
22.82
|
0.16
|
0.78
|
0.94
|
(0.22)
|
(1.60)
|
(1.82)
|
21.94
|
4.31
|
812,719
|
0.03
|
0.03
|
0.65
|
20
|
|
Year
ended 12/31/20 |
19.19
|
0.07
|
3.86
|
3.93
|
(0.24)
|
(0.06)
|
(0.30)
|
22.82
|
20.99
|
842,979
|
0.04
|
0.04
|
0.36
|
12
|
|
Eight
months ended 12/31/19 |
18.23
|
0.19
|
1.17
|
1.36
|
(0.18)
|
(0.22)
|
(0.40)
|
19.19
|
7.51
|
805,573
|
0.03(f)
|
0.03(f)
|
1.57(f)
|
5
|
|
Year
ended 04/30/19 |
18.73
|
0.20
|
(0.49)
|
(0.29)
|
(0.21)
|
—
|
(0.21)
|
18.23
|
(1.37)
|
734,849
|
0.04
|
0.04
|
1.17
|
7
|
|
Year
ended 04/30/18 |
15.96
|
0.16
|
2.75
|
2.91
|
(0.14)
|
—
|
(0.14)
|
18.73
|
18.28
|
461,321
|
0.05
|
0.05
|
0.90
|
30
|
|
| ||||||||||||||
|
(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)
|
In
addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of
the underlying funds in which the Fund invests. Because
the
underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees
and expenses incurred indirectly by the Fund will vary.
Estimated
underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the
underlying funds and are deducted from the value
of
the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the
Fund’s total return. Estimated acquired fund fees from
underlying
funds were 0.77 %,0.82% and 0.81% for the year ended December 31, 2022,2021 and 2020, respectively. |
15 Invesco
International Diversified Fund
|
(d)
|
Does
not include indirect expenses from affiliated fund fees and expenses of 0.80%, 0.83%, 0.83% and 0.70% for the eight months ended December
31, 2019, and the years ended April 30,
2019
and 2018, respectively. |
|
(e)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended ended
December 31, 2020, the portfolio turnover calculation
excludes
the value of securities purchased of $103,226,025 and sold of $86,850,094 in the effort to realign the Fund’s portfolio holdings
after the reorganization of Invesco International
Allocation
Fund into the Fund. |
|
(f)
|
Annualized.
|
|
(g)
|
Commencement
date after the close of business on May 24, 2019. |
16 Invesco
International Diversified Fund
Hypothetical Investment and Expense Information
In connection with the
final settlement reached between Invesco and certain of its affiliates with certain regulators, including the New York Attorney General’s
Office, the SEC and the Colorado Attorney General’s Office (the settlement) arising out of certain market timing and unfair pricing
allegations made against Invesco and certain of its affiliates, Invesco and certain of its affiliates agreed, among other things, to disclose
certain hypothetical information regarding investment and expense information to Fund shareholders. The chart below is intended to reflect
the annual and cumulative impact of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s
returns over a 10-year period. The example reflects the following:
◾
You
invest $10,000 in the Fund and hold it for the entire 10-year period;
◾
Your
investment has a 5% return before expenses each year;
◾
The
Fund’s current annual expense ratio includes, if applicable, any contractual fee waiver or expense reimbursement that would apply
for the period for which it was committed;
◾
Hypotheticals
both with and without any applicable initial sales charge applied; and
◾
There
is no sales charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio
for the Fund’s classes for any of the years shown. This is only a hypothetical presentation made to illustrate what expenses and
returns would be under the above scenarios; your actual returns and expenses are likely to differ (higher or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
(1.92%)
|
1.80%
|
5.66%
|
9.66%
|
13.82%
|
18.13%
|
22.61%
|
27.26%
|
32.08%
|
37.08%
|
|
End
of Year Balance |
$9,808.16
|
$10,179.88
|
$10,565.70
|
$10,966.14
|
$11,381.76
|
$11,813.13
|
$12,260.84
|
$12,725.53
|
$13,207.83
|
$13,708.41
|
|
Estimated
Annual Expenses |
$666.51
|
$120.93
|
$125.51
|
$130.27
|
$135.20
|
$140.33
|
$145.65
|
$151.17
|
$156.90
|
$162.84
|
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.79%
|
7.72%
|
11.81%
|
16.04%
|
20.44%
|
25.01%
|
29.74%
|
34.66%
|
39.77%
|
45.06%
|
|
End
of Year Balance |
$10,379.00
|
$10,772.36
|
$11,180.64
|
$11,604.38
|
$12,044.19
|
$12,500.66
|
$12,974.44
|
$13,466.17
|
$13,976.54
|
$14,506.25
|
|
Estimated
Annual Expenses |
$123.29
|
$127.97
|
$132.82
|
$137.85
|
$143.07
|
$148.50
|
$154.12
|
$159.97
|
$166.03
|
$172.32
|
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.21%
|
1.21%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.04%
|
6.17%
|
9.40%
|
12.73%
|
16.15%
|
19.68%
|
23.32%
|
27.07%
|
31.89%
|
36.89%
|
|
End
of Year Balance |
$10,304.00
|
$10,617.24
|
$10,940.01
|
$11,272.58
|
$11,615.27
|
$11,968.37
|
$12,332.21
|
$12,707.11
|
$13,188.71
|
$13,688.56
|
|
Estimated
Annual Expenses |
$198.98
|
$205.03
|
$211.26
|
$217.68
|
$224.30
|
$231.12
|
$238.15
|
$245.39
|
$156.67
|
$162.61
|
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.46%
|
1.46%
|
1.46%
|
1.46%
|
1.46%
|
1.46%
|
1.46%
|
1.46%
|
1.46%
|
1.46%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.54%
|
7.21%
|
11.00%
|
14.93%
|
19.00%
|
23.21%
|
27.57%
|
32.09%
|
36.76%
|
41.61%
|
|
End
of Year Balance |
$10,354.00
|
$10,720.53
|
$11,100.04
|
$11,492.98
|
$11,899.83
|
$12,321.09
|
$12,757.25
|
$13,208.86
|
$13,676.45
|
$14,160.60
|
|
Estimated
Annual Expenses |
$148.58
|
$153.84
|
$159.29
|
$164.93
|
$170.77
|
$176.81
|
$183.07
|
$189.55
|
$196.26
|
$203.21
|
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.04%
|
8.24%
|
12.62%
|
17.17%
|
21.90%
|
26.82%
|
31.95%
|
37.28%
|
42.82%
|
48.59%
|
|
End
of Year Balance |
$10,404.00
|
$10,824.32
|
$11,261.62
|
$11,716.59
|
$12,189.94
|
$12,682.42
|
$13,194.79
|
$13,727.86
|
$14,282.46
|
$14,859.47
|
|
Estimated
Annual Expenses |
$97.94
|
$101.90
|
$106.01
|
$110.30
|
$114.75
|
$119.39
|
$124.21
|
$129.23
|
$134.45
|
$139.88
|
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.87%
|
0.87%
|
0.87%
|
0.87%
|
0.87%
|
0.87%
|
0.87%
|
0.87%
|
0.87%
|
0.87%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.13%
|
8.43%
|
12.91%
|
17.57%
|
22.43%
|
27.48%
|
32.75%
|
38.23%
|
43.94%
|
49.89%
|
|
End
of Year Balance |
$10,413.00
|
$10,843.06
|
$11,290.88
|
$11,757.19
|
$12,242.76
|
$12,748.39
|
$13,274.89
|
$13,823.15
|
$14,394.04
|
$14,988.52
|
|
Estimated
Annual Expenses |
$88.80
|
$92.46
|
$96.28
|
$100.26
|
$104.40
|
$108.71
|
$113.20
|
$117.88
|
$122.74
|
$127.81
|
|
| ||||||||||
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.19%
|
8.56%
|
13.10%
|
17.84%
|
22.78%
|
27.93%
|
33.29%
|
38.87%
|
44.69%
|
50.75%
|
|
End
of Year Balance |
$10,419.00
|
$10,855.56
|
$11,310.40
|
$11,784.31
|
$12,278.07
|
$12,792.52
|
$13,328.53
|
$13,887.00
|
$14,468.86
|
$15,075.11
|
|
Estimated
Annual Expenses |
$82.70
|
$86.16
|
$89.77
|
$93.53
|
$97.45
|
$101.54
|
$105.79
|
$110.22
|
$114.84
|
$119.65
|
|
| ||||||||||
1
Your
actual expenses may be higher or lower than those shown.
2
The
hypothetical assumes you hold your investment for a full 10 years. Therefore, any applicable deferred sales charge that might apply in
year one for Class C has not been deducted.
17 Invesco
International Diversified Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
International Diversified Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
O-IDIV-PRO-1
|
Prospectus
April
28,
2023
Class:
A (OPMSX), C (OPMCX),
R (OPMNX), Y (OPMYX),
R5 (MSMJX), R6 (OPMIX)
Invesco
Main Street Mid Cap Fund®
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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3
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-16
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A-17
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A-17
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A-18
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A-21
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A-24
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
Main Street Mid Cap Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is to seek capital appreciation.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
|
Class:
|
A
|
C
|
R
|
Y
|
R5
|
R6
|
|
Management
Fees |
0.62%
|
0.62%
|
0.62%
|
0.62%
|
0.62%
|
0.62%
|
|
| ||||||
|
Distribution
and/or Service (12b-1) Fees |
0.24
|
1.00
|
0.50
|
None
|
None
|
None
|
|
| ||||||
|
Other
Expenses |
0.20
|
0.20
|
0.20
|
0.20
|
0.13
|
0.06
|
|
| ||||||
|
Total
Annual Fund Operating Expenses |
1.06
|
1.82
|
1.32
|
0.82
|
0.75
|
0.68
|
|
| ||||||
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 54%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
Under
normal market conditions, the Fund will invest at least 80% of its net assets, including any borrowings for investment purposes, in securities
of “mid cap” companies, and in derivatives and other instruments that have economic characteristics similar to such securities.
The Fund considers mid cap companies to be those having a market capitalization,
at the time of purchase, within the range of market capitalizations
of the largest and smallest capitalized companies included in the Russell Midcap®
Index during
the most recent 11-month period (based on month-end data) plus the most recent data during the current month. A company’s market
capitalization is the value of its outstanding stock.
The Fund is not required to sell a security if the company’s
capitalization moves outside of the Fund’s capitalization definition.
The
Fund primarily invests in common stock but may also invest in other
types of securities, such as real estate investment trusts (“REITs”) or other securities that are consistent with its investment
objective.
The
portfolio managers use fundamental research to select securities for
the Fund’s portfolio. While the process may change over time or vary in particular cases, in general the selection process currently
uses a fundamental approach in analyzing issuers on factors such as a company’s financial performance, competitive strength and
prospects, industry position, and business model and management strength. Industry outlook, market trends and general economic conditions
may also be considered.
The
Fund aims to maintain broad diversification across all major economic
sectors. In constructing the portfolio, the Fund seeks to limit exposure to so-called “top-down” or “macro” risks,
such as overall stock market movements, economic cycles, and interest rate or currency fluctuations. Instead, the portfolio managers seek
to add value by selecting individual securities with superior company-specific fundamental attributes or relative valuations that they
expect to outperform their industry and sector peers. This is commonly referred to as a “bottom-up” approach to portfolio
construction.
The
portfolio managers consider stock rankings, benchmark weightings and
capitalization outlooks in determining security weightings for individual issuers. Although the Fund mainly invests in U.S. companies,
it can invest in securities issued by companies or governments in any country; however, it does not currently intend to invest substantially
in foreign securities.
The
portfolio managers might sell a security if, among other criteria, the price
is approaching their price target, if the company’s competitive position has deteriorated or the company’s management has
performed poorly, or if they have identified more attractive investment prospects.
1 Invesco
Main Street Mid Cap Fund
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. The principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism,
economic crisis or adverse investor sentiment generally. During
a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance
that specific investments held by the Fund will rise in value.
Investing
in Stocks Risk.
The value of the Fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant short-term
volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have unexpected
negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets may move
in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations
and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many
instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially
less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller
companies may be subject to wider price fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price
when it wants to sell them. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize
a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
REIT
Risk/Real Estate Risk.
Investments in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological
factors that affect property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap
companies, may be more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt
obligations held by the Fund, the Fund may acquire real estate directly, which involves additional risks such as environmental liabilities;
difficulty in valuing and selling the real estate; and economic or regulatory changes.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management
of the Fund and, therefore, the ability of the Fund to achieve its investment objective.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The Fund has adopted the performance of the
Oppenheimer Main Street Mid Cap Fund (the predecessor fund) as the result of a reorganization of the predecessor fund into the Fund, which
was consummated after the close of business on May 24, 2019 (the “Reorganization”). Prior to the Reorganization, the Fund
had not yet commenced operations. The
bar chart shows changes in the performance of the predecessor fund and the Fund from year to year as of December 31. The performance table
compares the predecessor fund’s and the Fund’s performance to that of a broad measure of market performance.
The
Fund’s (and the predecessor fund’s) past performance (before and after taxes) is not necessarily an indication of how the
Fund will perform in the future.
The
returns shown for periods ending on or prior to May 24, 2019 are those
of the Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. 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 after
the close of business on May 24, 2019. Class A, Class C, Class R, Class Y and Class R6 shares’ returns of the Fund will be different
from the returns of the predecessor fund as they have different expenses. Performance for Class A shares has been restated to reflect
the Fund’s applicable sales charge.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
22.72%
|
|
Worst
Quarter |
March
31, 2020 |
-27.75%
|
2 Invesco
Main Street Mid Cap Fund
Average Annual Total Returns (for the period ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
8/2/1999
|
-19.07%
|
4.73%
|
8.58%
|
|
Return
After Taxes on Distributions |
|
-19.86
|
2.49
|
6.27
|
|
Return
After Taxes on Distributions and Sale of
Fund
Shares |
|
-10.85
|
3.29
|
6.44
|
|
| ||||
|
Class
C |
8/2/1999
|
-15.76
|
5.14
|
8.54
|
|
| ||||
|
Class
R |
3/1/2001
|
-14.52
|
5.68
|
8.92
|
|
| ||||
|
Class
Y |
8/2/1999
|
-14.10
|
6.20
|
9.48
|
|
| ||||
|
Class
R5 |
5/24/2019
|
-14.06
|
6.191
|
9.341
|
|
| ||||
|
Class
R6 |
10/26/2012
|
-14.00
|
6.37
|
9.66
|
|
| ||||
|
Russell
Midcap®
Index (reflects
no deduction for
fees,
expenses or taxes) |
|
-17.32
|
7.10
|
10.96
|
|
| ||||
1
Performance shown prior to the inception
date is that of the predecessor fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although
invested in the same portfolio of securities, Class R5 shares' returns of the Fund will be different from Class A shares' returns of the
predecessor fund as they have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek capital appreciation. The Fund’s investment objective may be changed by the Board of
Trustees (the Board) without shareholder approval.
Under
normal market conditions, the Fund will invest at least 80% of its net
assets, including any borrowings for investment purposes, in securities of “mid cap” companies, and in derivatives and other
instruments that have economic characteristics similar to such securities. The Fund considers mid cap companies to be those having a market
capitalization, at
the time of purchase, within the range of market capitalizations of the largest and smallest capitalized companies included in the Russell
Midcap®
Index during
the most recent 11-month period (based on month-end data) plus the most recent data during the current month. A company’s market
capitalization is the value of its outstanding stock.
The Fund is not required to sell a security if the company’s
capitalization moves outside of the Fund’s capitalization definition. The Russell Midcap®
Index measures the performance of the 800 smallest issuers with the lowest market capitalization in the Russell 1000®
Index. The Russell 1000®
Index is a widely recognized, unmanaged index of equity securities of the 1,000 largest issuers in the Russell 3000®
Index, which measures the performance of the 3,000 largest U.S. issuers based on total market capitalization. The issuers in the Russell
Midcap®
Index are considered representative of medium-sized issuers. The capitalization range of the index is subject to change at any time due
to market activity or changes in the composition of the index. The range of the Russell Midcap®
Index generally widens over time and is reconstituted annually to preserve its mid cap characteristics.
3 Invesco
Main Street Mid Cap Fund
The
Fund primarily invests in common stock but may also invest in other
types of securities, such as REITs or other securities that are consistent with its investment objective.
The
portfolio managers use fundamental research to select securities for
the Fund’s portfolio. While the process may change over time or vary in particular cases, in general the selection process currently
uses a fundamental approach in analyzing issuers on factors such as a company’s financial performance, competitive strength and
prospects, industry position, and business model and management strength. Industry outlook, market trends and general economic conditions
may also be considered.
The
Fund aims to maintain broad diversification across all major economic
sectors. In constructing the portfolio, the Fund seeks to limit exposure to so-called “top-down” or “macro” risks,
such as overall stock market movements, economic cycles, and interest rate or currency fluctuations. Instead, the portfolio managers seek
to add value by selecting individual securities with superior company-specific fundamental attributes or relative valuations that they
expect to outperform their industry and sector peers. This is commonly referred to as a “bottom-up” approach to portfolio
construction.
The
portfolio managers consider stock rankings, benchmark weightings and
capitalization outlooks in determining security weightings for individual issuers. Although the Fund mainly invests in U.S. companies,
it can invest in securities issued by companies or governments in any country; however, it does not currently intent to invest substantially
in foreign securities.
The
portfolio managers might sell a security if, among other criteria, the price
is approaching their price target, if the company’s competitive position has deteriorated or the company’s management has
performed poorly, or if they have identified more attractive investment prospects.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
the Fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector,
such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters, widespread
disease or other public health issues, war, military conflict, acts of terrorism,
economic crisis or other events may have a significant impact
on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances may also
impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in the financial
markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held
by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO)
member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine (and the potential
for further sanctions in response to Russia’s continued military activity)
may escalate.
These and other corresponding events, have had, and could continue
to have, severe negative effects on regional and global economic and financial markets, including increased volatility, reduced liquidity,
and overall uncertainty. The negative impacts may be particularly acute in certain sectors including, but not limited to, energy and financials.
Russia may take additional countermeasures or retaliatory actions (including cyberattacks), which could exacerbate negative consequences
on global financial markets. The duration of the conflict and corresponding sanctions and related events cannot be predicted. The foregoing
may result in a negative impact on Fund performance and the value of an investment in the Fund, even beyond any direct investment exposure
the Fund may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk
4 Invesco
Main Street Mid Cap Fund
than
customarily is associated with investing in larger, more established companies. Stocks of small- and mid-capitalization companies tend
to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have
more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’
securities may be more volatile and less liquid than those of more established companies. They may be more sensitive to changes in a company’s
earnings expectations and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower
volumes and in many instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading
is substantially less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities
of smaller companies may be subject to wider price fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable
price when it wants to sell them. In addition, investors might seek to trade Fund shares based on their knowledge or understanding of
the value of smaller company securities (this is sometimes referred to as “price arbitrage”), which could interfere with the
efficient management of the Fund. Since small and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize
a gain on an investment in a small- or mid-cap company, if any gain is realized at all. The relative sizes of companies may change over
time as the securities market changes, and the Fund is not required to sell the securities of companies whose market capitalizations have
grown or decreased due to market fluctuations.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Real estate companies, including REITs or similar structures, tend to be small- and mid-cap
companies and their shares may be more volatile and less liquid than larger companies. The value of investments in real estate related
companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial covenants
related thereto, whether the company carries adequate insurance and environmental factors. If a real estate related company defaults on
certain types of debt obligations held by the Fund, the Fund may acquire real estate directly, which involves additional risks such as
environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. There can be no guarantee that the Adviser’s investment techniques or investment
decisions will produce the desired results. Additionally, legislative, regulatory, or tax developments may affect the investments or investment
strategies available to the Adviser in connection with managing the Fund, which may also adversely affect the ability of the Fund to achieve
its investment objective.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day
management.
The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with
certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to
provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Adviser
Compensation
During
the fiscal year ended December 31, 2022, the Adviser received compensation of 0.62% of the Fund's average daily net assets, after fee
waiver and/or expense reimbursement, if any. The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under
the administrative services agreement with the Adviser.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Belinda
Cavazos, CFA (co-lead manager), Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco
and/or its affiliates since 2020. Prior to joining Invesco, Ms. Cavazos was employed by Boston Trust Walden from 2013 to 2020, where she
served as a Managing Director and Portfolio Manager.
◾
Adam
Weiner (co-lead manager), Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or
its affiliates since 2019. Prior to the commencement of the Fund’s operations, Mr. Weiner managed the predecessor fund since 2012
and was associated with OppenheimerFunds, a global asset management firm, since 2009.
◾
Matthew
P. Ziehl, CFA (co-lead manager), Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco
and/or its affiliates since 2019. Prior to the commencement of the Fund’s operations, Mr. Ziehl managed the predecessor fund since
2009 and was associated with OppenheimerFunds, a global asset management firm, since 2009.
◾
Joy
Budzinski, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Ms. Budzinski managed the predecessor fund since 2012 and was associated
with OppenheimerFunds, a global asset management firm, since 2009.
5 Invesco
Main Street Mid Cap Fund
◾
Magnus
Krantz, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Mr. Krantz managed the predecessor fund since 2012 and was associated
with OppenheimerFunds, a global asset management firm, since 2009.
◾
Raman
Vardharaj, CFA, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Mr. Vardharaj managed the predecessor fund since 2009 and was associated
with OppenheimerFunds, a global asset management firm, since 2009.
A
lead or co-lead manager generally has final authority over all
aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio construction
techniques, portfolio risk assessment, and the management of daily cash flows in accordance with portfolio holdings. The degree to which
a lead or co-lead manager may perform these functions, and the nature of these functions, may change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
6 Invesco
Main Street Mid Cap Fund
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the Fund or
predecessor fund or class of Fund or predecessor fund shares. The financial highlights table is intended to help you understand the Fund’s
and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund (assuming reinvestment of all dividends and distributions). The information
for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting
firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual report, which is available
upon request. The information for fiscal years ended prior to May 24, 2019 has been audited by the predecessor fund’s auditor.
|
|
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 | ||||||||||||||
|
Year
ended 12/31/22 |
$28.30
|
$0.09
|
$(4.16)
|
$(4.07)
|
$(0.03)
|
$(0.86)
|
$(0.89)
|
$23.34
|
(14.35)%(e)
|
$1,723,024
|
1.06%(e)
|
1.06%(e)
|
0.35%(e)
|
54%
|
|
Year
ended 12/31/21 |
27.52
|
(0.04)
|
6.20
|
6.16
|
(0.07)
|
(5.31)
|
(5.38)
|
28.30
|
23.02
|
2,217,085
|
1.06
|
1.06
|
(0.13)
|
65
|
|
Year
ended 12/31/20 |
26.13
|
0.06
|
2.06
|
2.12
|
—
|
(0.73)
|
(0.73)
|
27.52
|
9.13(e)
|
1,946,102
|
1.10(e)
|
1.11(e)
|
0.27(e)
|
76
|
|
Six
months ended 12/31/19 |
25.18
|
0.07
|
2.18
|
2.25
|
—
|
(1.30)
|
(1.30)
|
26.13
|
8.95
|
1,326,188
|
1.10(f)
|
1.12(f)
|
0.51(f)
|
27
|
|
Year
ended 06/30/19 |
27.59
|
0.08
|
0.25
|
0.33
|
—
|
(2.74)
|
(2.74)
|
25.18
|
2.50
|
1,364,726
|
1.09
|
1.09
|
0.30
|
59
|
|
Year
ended 06/30/18 |
28.59
|
0.02
|
2.84
|
2.86
|
(0.12)
|
(3.74)
|
(3.86)
|
27.59
|
10.67
|
1,383,592
|
1.09
|
1.10
|
0.08
|
60
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
20.29
|
(0.07)
|
(2.97)
|
(3.04)
|
—
|
(0.86)
|
(0.86)
|
16.39
|
(14.95)
|
67,259
|
1.82
|
1.82
|
(0.41)
|
54
|
|
Year
ended 12/31/21 |
21.11
|
(0.21)
|
4.70
|
4.49
|
—
|
(5.31)
|
(5.31)
|
20.29
|
22.08
|
97,388
|
1.81
|
1.81
|
(0.88)
|
65
|
|
Year
ended 12/31/20 |
20.41
|
(0.09)
|
1.52
|
1.43
|
—
|
(0.73)
|
(0.73)
|
21.11
|
8.29
|
90,764
|
1.84
|
1.87
|
(0.47)
|
76
|
|
Six
months ended 12/31/19 |
20.00
|
(0.02)
|
1.73
|
1.71
|
—
|
(1.30)
|
(1.30)
|
20.41
|
8.56
|
111,246
|
1.84(f)
|
1.88(f)
|
(0.23)(f)
|
27
|
|
Year
ended 06/30/19 |
22.69
|
(0.09)
|
0.14
|
0.05
|
—
|
(2.74)
|
(2.74)
|
20.00
|
1.75
|
123,764
|
1.84
|
1.85
|
(0.46)
|
59
|
|
Year
ended 06/30/18 |
24.22
|
(0.16)
|
2.37
|
2.21
|
—
|
(3.74)
|
(3.74)
|
22.69
|
9.84
|
269,651
|
1.84
|
1.85
|
(0.68)
|
60
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 12/31/22 |
25.90
|
0.02
|
(3.79)
|
(3.77)
|
—
|
(0.86)
|
(0.86)
|
21.27
|
(14.53)
|
140,983
|
1.32
|
1.32
|
0.09
|
54
|
|
Year
ended 12/31/21 |
25.58
|
(0.11)
|
5.75
|
5.64
|
(0.01)
|
(5.31)
|
(5.32)
|
25.90
|
22.73
|
184,312
|
1.31
|
1.31
|
(0.38)
|
65
|
|
Year
ended 12/31/20 |
24.41
|
0.01
|
1.89
|
1.90
|
—
|
(0.73)
|
(0.73)
|
25.58
|
8.87
|
163,178
|
1.34
|
1.37
|
0.03
|
76
|
|
Six
months ended 12/31/19 |
23.63
|
0.03
|
2.05
|
2.08
|
—
|
(1.30)
|
(1.30)
|
24.41
|
8.81
|
145,346
|
1.34(f)
|
1.38(f)
|
0.27(f)
|
27
|
|
Year
ended 06/30/19 |
26.13
|
0.01
|
0.23
|
0.24
|
—
|
(2.74)
|
(2.74)
|
23.63
|
2.28
|
152,799
|
1.34
|
1.35
|
0.05
|
59
|
|
Year
ended 06/30/18 |
27.28
|
(0.05)
|
2.69
|
2.64
|
(0.05)
|
(3.74)
|
(3.79)
|
26.13
|
10.37
|
171,923
|
1.34
|
1.35
|
(0.18)
|
60
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
31.87
|
0.17
|
(4.67)
|
(4.50)
|
(0.11)
|
(0.86)
|
(0.97)
|
26.40
|
(14.10)
|
310,823
|
0.82
|
0.82
|
0.59
|
54
|
|
Year
ended 12/31/21 |
30.40
|
0.04
|
6.87
|
6.91
|
(0.13)
|
(5.31)
|
(5.44)
|
31.87
|
23.31
|
436,518
|
0.81
|
0.81
|
0.12
|
65
|
|
Year
ended 12/31/20 |
28.69
|
0.14
|
2.30
|
2.44
|
—
|
(0.73)
|
(0.73)
|
30.40
|
9.44
|
395,290
|
0.84
|
0.87
|
0.53
|
76
|
|
Six
months ended 12/31/19 |
27.49
|
0.11
|
2.39
|
2.50
|
—
|
(1.30)
|
(1.30)
|
28.69
|
9.11
|
458,670
|
0.84(f)
|
0.88(f)
|
0.77(f)
|
27
|
|
Year
ended 06/30/19 |
29.84
|
0.15
|
0.30
|
0.45
|
(0.06)
|
(2.74)
|
(2.80)
|
27.49
|
2.73
|
477,999
|
0.84
|
0.85
|
0.55
|
59
|
|
Year
ended 06/30/18 |
30.62
|
0.10
|
3.05
|
3.15
|
(0.19)
|
(3.74)
|
(3.93)
|
29.84
|
10.96
|
596,309
|
0.84
|
0.85
|
0.32
|
60
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
28.54
|
0.17
|
(4.19)
|
(4.02)
|
(0.13)
|
(0.86)
|
(0.99)
|
23.53
|
(14.06)
|
13,795
|
0.75
|
0.75
|
0.66
|
54
|
|
Year
ended 12/31/21 |
27.70
|
0.06
|
6.25
|
6.31
|
(0.16)
|
(5.31)
|
(5.47)
|
28.54
|
23.41
|
17,284
|
0.74
|
0.74
|
0.19
|
65
|
|
Year
ended 12/31/20 |
26.19
|
0.16
|
2.08
|
2.24
|
—
|
(0.73)
|
(0.73)
|
27.70
|
9.58
|
14,535
|
0.72
|
0.72
|
0.65
|
76
|
|
Six
months ended 12/31/19 |
25.18
|
0.11
|
2.20
|
2.31
|
—
|
(1.30)
|
(1.30)
|
26.19
|
9.19
|
11
|
0.72(f)
|
0.72(f)
|
0.88(f)
|
27
|
|
Period
ended 06/30/19(g)
|
23.91
|
0.02
|
1.25
|
1.27
|
—
|
—
|
—
|
25.18
|
5.31
|
11
|
0.72(f)
|
0.74(f)
|
0.66(f)
|
59
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
31.86
|
0.21
|
(4.68)
|
(4.47)
|
(0.15)
|
(0.86)
|
(1.01)
|
26.38
|
(14.00)
|
80,394
|
0.68
|
0.68
|
0.73
|
54
|
|
Year
ended 12/31/21 |
30.38
|
0.09
|
6.87
|
6.96
|
(0.17)
|
(5.31)
|
(5.48)
|
31.86
|
23.50
|
93,221
|
0.67
|
0.68
|
0.26
|
65
|
|
Year
ended 12/31/20 |
28.63
|
0.18
|
2.30
|
2.48
|
—
|
(0.73)
|
(0.73)
|
30.38
|
9.60
|
87,060
|
0.67
|
0.69
|
0.70
|
76
|
|
Six
months ended 12/31/19 |
27.41
|
0.13
|
2.39
|
2.52
|
—
|
(1.30)
|
(1.30)
|
28.63
|
9.21
|
65,001
|
0.67(f)
|
0.69(f)
|
0.94(f)
|
27
|
|
Year
ended 06/30/19 |
29.77
|
0.20
|
0.29
|
0.49
|
(0.11)
|
(2.74)
|
(2.85)
|
27.41
|
2.92
|
123,716
|
0.67
|
0.68
|
0.71
|
59
|
|
Year
ended 06/30/18 |
30.57
|
0.15
|
3.03
|
3.18
|
(0.24)
|
(3.74)
|
(3.98)
|
29.77
|
11.11
|
337,300
|
0.67
|
0.67
|
0.49
|
60
|
|
| ||||||||||||||
|
(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 six months ended December 31, 2019 and the years
ended June 30, 2019 and 2018, respectively. |
|
(d)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended December
31, 2021, the portfolio turnover calculation
excludes
the value of securities purchased of $96,615,194 in connection with the acquisition of Invesco Endeavor Fund into the Fund. For the year
ended December 31, 2020, the portfolio
turnover
calculation excludes the value of securities purchased of $654,478,527 in connection with the acquisition of Invesco Mid Cap Core Equity
Fund into the Fund. |
7 Invesco
Main Street Mid Cap Fund
|
(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 0.24% for the year ended December 31, 2022 and
2020.
|
|
(f)
|
Annualized.
|
|
(g)
|
Commencement
date after the close of business on May 24, 2019. |
8 Invesco
Main Street Mid Cap Fund
Hypothetical Investment and Expense Information
In connection with the
final settlement reached between Invesco and certain of its affiliates with certain regulators, including the New York Attorney General’s
Office, the SEC and the Colorado Attorney General’s Office (the settlement) arising out of certain market timing and unfair pricing
allegations made against Invesco and certain of its affiliates, Invesco and certain of its affiliates agreed, among other things, to disclose
certain hypothetical information regarding investment and expense information to Fund shareholders. The chart below is intended to reflect
the annual and cumulative impact of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s
returns over a 10-year period. The example reflects the following:
◾
You
invest $10,000 in the Fund and hold it for the entire 10-year period;
◾
Your
investment has a 5% return before expenses each year;
◾
The
Fund’s current annual expense ratio includes, if applicable, any contractual fee waiver or expense reimbursement that would apply
for the period for which it was committed;
◾
Hypotheticals
both with and without any applicable initial sales charge applied; and
◾
There
is no sales charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio
for the Fund’s classes for any of the years shown. This is only a hypothetical presentation made to illustrate what expenses and
returns would be under the above scenarios; your actual returns and expenses are likely to differ (higher or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
(1.78%)
|
2.09%
|
6.12%
|
10.30%
|
14.64%
|
19.16%
|
23.85%
|
28.73%
|
33.81%
|
39.08%
|
|
End
of Year Balance |
$9,822.33
|
$10,209.33
|
$10,611.58
|
$11,029.67
|
$11,464.24
|
$11,915.93
|
$12,385.42
|
$12,873.41
|
$13,380.62
|
$13,907.82
|
|
Estimated
Annual Expenses |
$652.14
|
$106.17
|
$110.35
|
$114.70
|
$119.22
|
$123.91
|
$128.80
|
$133.87
|
$139.15
|
$144.63
|
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
1.06%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.94%
|
8.04%
|
12.29%
|
16.72%
|
21.31%
|
26.09%
|
31.06%
|
36.23%
|
41.59%
|
47.17%
|
|
End
of Year Balance |
$10,394.00
|
$10,803.52
|
$11,229.18
|
$11,671.61
|
$12,131.47
|
$12,609.45
|
$13,106.27
|
$13,622.65
|
$14,159.39
|
$14,717.27
|
|
Estimated
Annual Expenses |
$108.09
|
$112.35
|
$116.77
|
$121.37
|
$126.16
|
$131.13
|
$136.29
|
$141.66
|
$147.24
|
$153.05
|
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.82%
|
1.82%
|
1.82%
|
1.82%
|
1.82%
|
1.82%
|
1.82%
|
1.82%
|
1.06%
|
1.06%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.18%
|
6.46%
|
9.85%
|
13.34%
|
16.94%
|
20.66%
|
24.50%
|
28.46%
|
33.52%
|
38.78%
|
|
End
of Year Balance |
$10,318.00
|
$10,646.11
|
$10,984.66
|
$11,333.97
|
$11,694.39
|
$12,066.27
|
$12,449.98
|
$12,845.89
|
$13,352.02
|
$13,878.09
|
|
Estimated
Annual Expenses |
$184.89
|
$190.77
|
$196.84
|
$203.10
|
$209.56
|
$216.22
|
$223.10
|
$230.19
|
$138.85
|
$144.32
|
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.68%
|
7.50%
|
11.45%
|
15.55%
|
19.80%
|
24.21%
|
28.78%
|
33.52%
|
38.44%
|
43.53%
|
|
End
of Year Balance |
$10,368.00
|
$10,749.54
|
$11,145.13
|
$11,555.27
|
$11,980.50
|
$12,421.38
|
$12,878.49
|
$13,352.42
|
$13,843.79
|
$14,353.24
|
|
Estimated
Annual Expenses |
$134.43
|
$139.38
|
$144.50
|
$149.82
|
$155.34
|
$161.05
|
$166.98
|
$173.12
|
$179.49
|
$186.10
|
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.18%
|
8.53%
|
13.07%
|
17.80%
|
22.72%
|
27.85%
|
33.20%
|
38.76%
|
44.56%
|
50.61%
|
|
End
of Year Balance |
$10,418.00
|
$10,853.47
|
$11,307.15
|
$11,779.79
|
$12,272.18
|
$12,785.16
|
$13,319.58
|
$13,876.34
|
$14,456.37
|
$15,060.64
|
|
Estimated
Annual Expenses |
$83.71
|
$87.21
|
$90.86
|
$94.66
|
$98.61
|
$102.74
|
$107.03
|
$111.50
|
$116.16
|
$121.02
|
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.25%
|
8.68%
|
13.30%
|
18.11%
|
23.13%
|
28.37%
|
33.82%
|
39.51%
|
45.44%
|
51.62%
|
|
End
of Year Balance |
$10,425.00
|
$10,868.06
|
$11,329.96
|
$11,811.48
|
$12,313.47
|
$12,836.79
|
$13,382.35
|
$13,951.10
|
$14,544.02
|
$15,162.14
|
|
Estimated
Annual Expenses |
$76.59
|
$79.85
|
$83.24
|
$86.78
|
$90.47
|
$94.31
|
$98.32
|
$102.50
|
$106.86
|
$111.40
|
|
| ||||||||||
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.32%
|
8.83%
|
13.53%
|
18.43%
|
23.55%
|
28.89%
|
34.45%
|
40.26%
|
46.32%
|
52.64%
|
|
End
of Year Balance |
$10,432.00
|
$10,882.66
|
$11,352.79
|
$11,843.23
|
$12,354.86
|
$12,888.59
|
$13,445.38
|
$14,026.22
|
$14,632.15
|
$15,264.26
|
|
Estimated
Annual Expenses |
$69.47
|
$72.47
|
$75.60
|
$78.87
|
$82.27
|
$85.83
|
$89.54
|
$93.40
|
$97.44
|
$101.65
|
|
| ||||||||||
1
Your
actual expenses may be higher or lower than those shown.
2
The
hypothetical assumes you hold your investment for a full 10 years. Therefore, any applicable deferred sales charge that might apply in
year one for Class C has not been deducted.
9 Invesco
Main Street Mid Cap Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Main Street Mid Cap Fund®
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
O-MSM-PRO-1
|
Prospectus
April
28,
2023
Class:
A (OSCAX), C (OSCCX),
R (OSCNX), Y (OSCYX),
R5 (MNSQX), R6 (OSSIX)
Invesco
Main Street Small Cap Fund®
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
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Back
Cover |
Invesco
Main Street Small Cap Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is to seek capital appreciation.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
|
Class:
|
A
|
C
|
R
|
Y
|
R5
|
R6
|
|
Management
Fees |
0.64%
|
0.64%
|
0.64%
|
0.64%
|
0.64%
|
0.64%
|
|
| ||||||
|
Distribution
and/or Service (12b-1) Fees |
0.25
|
1.00
|
0.50
|
None
|
None
|
None
|
|
| ||||||
|
Other
Expenses |
0.22
|
0.22
|
0.22
|
0.22
|
0.10
|
0.07
|
|
| ||||||
|
Total
Annual Fund Operating Expenses |
1.11
|
1.86
|
1.36
|
0.86
|
0.74
|
0.71
|
|
| ||||||
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 36%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
Under
normal market conditions, the Fund will invest at least 80% of its net assets, including any borrowings for investment purposes, in securities
of “small-cap” companies, and in derivatives and other instruments that have economic characteristics similar to such securities.
The Fund considers small-cap companies to be those having a market capitalization,
at the time of purchase, within the range of market capitalizations
of the largest and smallest capitalized companies included in the Russell 2000®
Index during
the most recent 11-month period (based on month-end data) plus the most recent data during the current month. A company’s market
capitalization is the value of its outstanding stock.
The Fund is not required to sell a security if the company’s
capitalization moves outside of the Fund’s capitalization definition.
Although
the Fund mainly invests in U.S. companies, it can invest in securities
issued by companies or governments in any country; however, it does not currently intend to invest substantially in foreign securities.
The Fund primarily invests in common stock but may also invest in other types of securities such as real estate investment trusts (“REITs”)
or other securities that
are consistent with its investment objective.
The
portfolio managers use fundamental research to select securities for
the Fund’s portfolio. While the process may change over time or vary in particular cases, in general the selection process currently
uses a fundamental approach in analyzing issuers on factors such as a company’s financial performance, competitive strength and
prospects, industry position, and business model and management strength. Industry outlook, market trends and general economic conditions
may also be considered.
The
Fund aims to maintain a broad diversification across all major economic
sectors. In constructing the portfolio, the Fund seeks to limit exposure to so-called “top-down” or “macro” risks,
such as overall stock market movements, economic cycles, and interest rate or currency fluctuations. Instead, the portfolio managers seek
to add value by selecting individual securities with superior company-specific fundamental attributes or relative valuations that they
expect to outperform their industry and sector peers. This is commonly referred to as a “bottom-up” approach to portfolio
construction.
The
portfolio managers consider stock rankings, benchmark weightings
and capitalization outlooks in determining security weightings for individual issuers. The portfolio managers might sell a security if
the price is approaching their price target, if the company’s
competitive position has deteriorated or the company’s management has performed poorly, or if they have identified more attractive
investment prospects.
1 Invesco
Main Street Small Cap Fund
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. The principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism,
economic crisis or adverse investor sentiment generally. During
a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance
that specific investments held by the Fund will rise in value.
Investing
in Stocks Risk.
The value of the Fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant short-term
volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have unexpected
negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets may move
in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations
and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many
instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially
less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller
companies may be subject to wider price fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price
when it wants to sell them. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize
a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
REIT
Risk/Real Estate Risk.
Investments in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological
factors that affect property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap
companies, may be more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt
obligations held by the Fund, the Fund may acquire real estate directly, which involves additional risks such as environmental liabilities;
difficulty in valuing and selling the real estate; and economic or regulatory changes.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management
of the Fund and, therefore, the ability of the Fund to achieve its investment objective.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The Fund has adopted the performance of the
Oppenheimer Main Street Small Cap Fund (the predecessor fund) as the result of a reorganization of the predecessor fund into the Fund,
which was consummated after the close of business on May 24, 2019 (the “Reorganization”). Prior to the Reorganization, the
Fund had not yet commenced operations. The
bar chart shows changes in the performance of the predecessor fund and the Fund from year to year as of December 31. The performance table
compares the predecessor fund’s and the Fund’s performance to that of a broad measure of market performance.
The
Fund’s (and the predecessor fund’s) past performance (before and after taxes) is not necessarily an indication of how the
Fund will perform in the future.
The
returns shown for periods ending on or prior to May 24, 2019 are those
of the Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. 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 after
the close of business on May 24, 2019. Class A, Class C, Class R, Class Y and Class R6 shares’ returns of the Fund will be different
from the returns of the predecessor fund as they have different expenses. Performance for Class A shares has been restated to reflect
the Fund’s applicable sales charge.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
28.40%
|
|
Worst
Quarter |
March
31, 2020 |
-30.61%
|
2 Invesco
Main Street Small Cap Fund
Average Annual Total Returns (for the period ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
Since
Inception
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
5/17/2013
|
-20.72%
|
5.35%
|
8.02%
|
|
Return
After Taxes on Distributions |
|
-20.73
|
4.44
|
7.31
|
|
Return
After Taxes on Distributions and Sale of
Fund
Shares |
|
-12.26
|
4.00
|
6.34
|
|
| ||||
|
Class
C |
5/17/2013
|
-17.55
|
5.74
|
7.94
|
|
| ||||
|
Class
R |
5/17/2013
|
-16.26
|
6.27
|
8.34
|
|
| ||||
|
Class
Y |
5/17/2013
|
-15.87
|
6.84
|
8.98
|
|
| ||||
|
Class
R5 |
5/24/2019
|
-15.78
|
6.821
|
8.801
|
|
| ||||
|
Class
R6 |
5/17/2013
|
-15.75
|
6.98
|
9.11
|
|
| ||||
|
Russell
2000®
Index (reflects
no deduction for
fees,
expenses or taxes)2
|
|
-20.44
|
4.13
|
7.53
|
|
| ||||
1
Performance shown prior to the inception
date is that of the predecessor fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although
invested in the same portfolio of securities, Class R5 shares' returns of the Fund will be different from Class A shares' returns of the
predecessor fund as they have different expenses.
2
From the inception date of the oldest
share class.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek capital appreciation. The Fund’s investment objective may be changed by the Board of
Trustees (the Board) without shareholder approval.
Under
normal market conditions, the Fund will invest at least 80% of its net
assets, including any borrowings for investment purposes, in securities of “small-cap” companies, and in derivatives and other
instruments that have economic characteristics similar to such securities. The Fund considers small-cap companies to be those having a
market capitalization, at
the time of purchase, within the range of market capitalizations of the largest and smallest capitalized companies included in the Russell
2000®
Index during the most recent 11-month period (based on month-end
data) plus the most recent data during the current month. A company’s market capitalization is the value of its outstanding stock.
The capitalization range of that index is subject to change at any time due to market activity or changes in the composition of the index.
The range of the Russell 2000®
Index generally widens over time and it is reconstituted annually to preserve its market cap characteristics. The Fund is not required
to sell a security if the company’s capitalization moves outside of the Fund’s capitalization definition.
Although
the Fund mainly invests in U.S. companies, it can invest in securities
issued by companies or governments in any country; however, it does not currently intend to invest substantially in foreign securities.
The Fund primarily invests in common stock but may also invest in other types of securities such as REITs or other securities that are
consistent with its investment objective.
3 Invesco
Main Street Small Cap Fund
The
portfolio managers use fundamental research to select securities for
the Fund’s portfolio. While the process may change over time or vary in particular cases, in general the selection process currently
uses a fundamental approach in analyzing issuers on factors such as a company’s financial performance, competitive strength and
prospects, industry position, and business model and management strength. Industry outlook, market trends and general economic conditions
may also be considered
The
Fund aims to maintain a broad diversification across all major economic
sectors. In constructing the portfolio, the Fund seeks to limit exposure to so-called “top-down” or “macro” risks,
such as overall stock market movements, economic cycles, and interest rate or currency fluctuations. Instead, the portfolio managers seek
to add value by selecting individual securities with superior company-specific fundamental attributes or relative valuations that they
expect to outperform their industry and sector peers. This is commonly referred to as a “bottom-up” approach to portfolio
construction.
The
portfolio managers consider stock rankings, benchmark weightings and
capitalization outlooks in determining security weightings for individual issuers. The portfolio managers might sell a security if the
price is approaching their price target, if the company’s competitive position has deteriorated or the company’s management
has performed poorly, or if they have identified more attractive investment prospects.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
the Fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector,
such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters, widespread
disease or other public health issues, war, military conflict, acts of terrorism,
economic crisis or other events may have a significant impact
on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances may also
impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in the financial
markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held
by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO)
member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine (and the potential
for further sanctions in response to
Russia’s
continued military activity) may
escalate. These
and other corresponding events, have had, and could continue to have, severe negative effects on regional and global economic and financial
markets, including increased volatility, reduced liquidity, and overall uncertainty. The negative impacts may be particularly acute in
certain sectors including, but not limited to, energy and financials. Russia may take additional countermeasures or retaliatory actions
(including cyberattacks), which could exacerbate negative consequences on global financial markets. The duration of the conflict and corresponding
sanctions and related events cannot be predicted. The foregoing may result in a negative impact on Fund performance and the value of an
investment in the Fund, even beyond any direct investment exposure the Fund may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may
4 Invesco
Main Street Small Cap Fund
be more
volatile and less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings
expectations and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes
and in many instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is
substantially less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities
of smaller companies may be subject to wider price fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable
price when it wants to sell them. In addition, investors might seek to trade Fund shares based on their knowledge or understanding of
the value of smaller company securities (this is sometimes referred to as “price arbitrage”), which could interfere with the
efficient management of the Fund. Since small and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize
a gain on an investment in a small- or mid-cap company, if any gain is realized at all. The relative sizes of companies may change over
time as the securities market changes, and the Fund is not required to sell the securities of companies whose market capitalizations have
grown or decreased due to market fluctuations.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Real estate companies, including REITs or similar structures, tend to be small- and mid-cap
companies and their shares may be more volatile and less liquid than larger companies. The value of investments in real estate related
companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial covenants
related thereto, whether the company carries adequate insurance and environmental factors. If a real estate related company defaults on
certain types of debt obligations held by the Fund, the Fund may acquire real estate directly, which involves additional risks such as
environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. There can be no guarantee that the Adviser’s investment techniques or investment
decisions will produce the desired results. Additionally, legislative, regulatory, or tax developments may affect the investments or investment
strategies available to the Adviser in connection with managing the Fund, which may also adversely affect the ability of the Fund to achieve
its investment objective.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The
Adviser, as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with
certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to
provide
discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers and the
Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Adviser
Compensation
During
the fiscal year ended December 31, 2022, the Adviser received compensation of 0.64% of the Fund's average daily net assets, after fee
waiver and/or expense reimbursement, if any. The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under
the administrative services agreement with the Adviser.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Matthew
P. Ziehl, CFA (co-lead manager), Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco
and/or its affiliates since 2019. Prior to the commencement of the Fund’s operations, Mr. Ziehl managed the predecessor fund since
2013 and was associated with OppenheimerFunds, a global asset management firm, since 2009.
◾
Adam
Weiner (co-lead manager), Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or
its affiliates since 2019. Prior to the commencement of the Fund’s operations, Mr. Weiner managed the predecessor fund since 2013
and was associated with OppenheimerFunds, a global asset management firm, since 2009.
◾
Joy
Budzinski, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Ms. Budzinski managed the predecessor fund since 2013 and was associated
with OppenheimerFunds, a global asset management firm, since 2009.
◾
Magnus
Krantz, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Mr. Krantz managed the predecessor fund since 2013 and was associated
with OppenheimerFunds, a global asset management firm, since 2009.
◾
Raman
Vardharaj, CFA, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Mr. Vardharaj managed the predecessor fund since 2013 and was associated
with OppenheimerFunds, a global asset management firm, since 2009.
5 Invesco
Main Street Small Cap Fund
A
lead or co-lead manager generally has final authority over all
aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio construction
techniques, portfolio risk assessment, and the management of daily cash flows in accordance with portfolio holdings. The degree to which
a lead or co-lead manager may perform these functions, and the nature of these functions, may change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
6 Invesco
Main Street Small Cap Fund
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the Fund or
predecessor fund or class of Fund or predecessor fund shares. The financial highlights table is intended to help you understand the Fund’s
and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund (assuming reinvestment of all dividends and distributions). The information
for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting
firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual report, which is available
upon request. The information for fiscal years ended prior to May 24, 2019 has been audited by the predecessor fund’s auditor.
|
|
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
|
Return
of
capital
|
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 | |||||||||||||||
|
Year
ended 12/31/22 |
$21.07
|
$0.02
|
$(3.41)
|
$(3.39)
|
$(0.01)
|
$—
|
$(0.00)
|
$(0.01)
|
$17.67
|
(16.09)%
|
$320,730
|
1.11%
|
1.11%
|
0.12%
|
36%
|
|
Year
ended 12/31/21 |
18.71
|
(0.06)
|
4.06
|
4.00
|
(0.01)
|
(1.63)
|
—
|
(1.64)
|
21.07
|
21.73
|
408,430
|
1.11
|
1.11
|
(0.28)
|
58
|
|
Year
ended 12/31/20 |
15.68
|
0.01
|
3.10
|
3.11
|
—
|
(0.08)
|
—
|
(0.08)
|
18.71
|
19.82(e)
|
158,769
|
1.20(e)
|
1.23(e)
|
0.03(e)
|
43
|
|
Eight
months ended 12/31/19 |
14.62
|
0.01
|
1.10
|
1.11
|
—
|
(0.05)
|
—
|
(0.05)
|
15.68
|
7.58
|
141,880
|
1.20(f)
|
1.25(f)
|
0.09(f)
|
19
|
|
Year
ended 04/30/19 |
15.09
|
0.00
|
0.58
|
0.58
|
—
|
(1.05)
|
—
|
(1.05)
|
14.62
|
4.46
|
140,651
|
1.17
|
1.17
|
0.01
|
46
|
|
Year
ended 04/30/18 |
14.87
|
(0.01)
|
1.08
|
1.07
|
(0.04)
|
(0.81)
|
—
|
(0.85)
|
15.09
|
7.08
|
112,937
|
1.20
|
1.21
|
(0.06)
|
52
|
|
| |||||||||||||||
|
Class
C | |||||||||||||||
|
Year
ended 12/31/22 |
19.68
|
(0.11)
|
(3.18)
|
(3.29)
|
—
|
—
|
—
|
—
|
16.39
|
(16.72)
|
31,022
|
1.86
|
1.86
|
(0.63)
|
36
|
|
Year
ended 12/31/21 |
17.70
|
(0.21)
|
3.83
|
3.62
|
(0.01)
|
(1.63)
|
—
|
(1.64)
|
19.68
|
20.81
|
42,392
|
1.86
|
1.86
|
(1.03)
|
58
|
|
Year
ended 12/31/20 |
14.95
|
(0.10)
|
2.93
|
2.83
|
—
|
(0.08)
|
—
|
(0.08)
|
17.70
|
18.92
|
34,635
|
1.94
|
1.99
|
(0.71)
|
43
|
|
Eight
months ended 12/31/19 |
14.01
|
(0.06)
|
1.05
|
0.99
|
—
|
(0.05)
|
—
|
(0.05)
|
14.95
|
7.06
|
37,488
|
1.94(f)
|
2.01(f)
|
(0.66)(f)
|
19
|
|
Year
ended 04/30/19 |
14.62
|
(0.11)
|
0.55
|
0.44
|
—
|
(1.05)
|
—
|
(1.05)
|
14.01
|
3.62
|
44,391
|
1.93
|
1.93
|
(0.74)
|
46
|
|
Year
ended 04/30/18 |
14.50
|
(0.12)
|
1.05
|
0.93
|
—
|
(0.81)
|
—
|
(0.81)
|
14.62
|
6.31
|
38,424
|
1.95
|
1.96
|
(0.83)
|
52
|
|
| |||||||||||||||
|
Class
R | |||||||||||||||
|
Year
ended 12/31/22 |
20.60
|
(0.02)
|
(3.33)
|
(3.35)
|
—
|
—
|
—
|
—
|
17.25
|
(16.26)
|
48,875
|
1.36
|
1.36
|
(0.13)
|
36
|
|
Year
ended 12/31/21 |
18.37
|
(0.11)
|
3.98
|
3.87
|
(0.01)
|
(1.63)
|
—
|
(1.64)
|
20.60
|
21.42
|
57,441
|
1.36
|
1.36
|
(0.53)
|
58
|
|
Year
ended 12/31/20 |
15.45
|
(0.03)
|
3.03
|
3.00
|
—
|
(0.08)
|
—
|
(0.08)
|
18.37
|
19.40
|
33,457
|
1.45
|
1.49
|
(0.22)
|
43
|
|
Eight
months ended 12/31/19 |
14.43
|
(0.02)
|
1.09
|
1.07
|
—
|
(0.05)
|
—
|
(0.05)
|
15.45
|
7.41
|
26,910
|
1.45(f)
|
1.51(f)
|
(0.16)(f)
|
19
|
|
Year
ended 04/30/19 |
14.95
|
(0.04)
|
0.57
|
0.53
|
—
|
(1.05)
|
—
|
(1.05)
|
14.43
|
4.16
|
24,188
|
1.43
|
1.43
|
(0.24)
|
46
|
|
Year
ended 04/30/18 |
14.75
|
(0.05)
|
1.08
|
1.03
|
(0.02)
|
(0.81)
|
—
|
(0.83)
|
14.95
|
6.79
|
18,749
|
1.45
|
1.46
|
(0.35)
|
52
|
|
| |||||||||||||||
|
Class
Y | |||||||||||||||
|
Year
ended 12/31/22 |
21.27
|
0.07
|
(3.44)
|
(3.37)
|
(0.05)
|
—
|
(0.01)
|
(0.06)
|
17.84
|
(15.87)
|
533,098
|
0.86
|
0.86
|
0.37
|
36
|
|
Year
ended 12/31/21 |
18.83
|
(0.01)
|
4.09
|
4.08
|
(0.01)
|
(1.63)
|
—
|
(1.64)
|
21.27
|
22.03
|
566,299
|
0.86
|
0.86
|
(0.03)
|
58
|
|
Year
ended 12/31/20 |
15.79
|
0.05
|
3.13
|
3.18
|
(0.06)
|
(0.08)
|
—
|
(0.14)
|
18.83
|
20.13
|
266,951
|
0.90
|
0.99
|
0.33
|
43
|
|
Eight
months ended 12/31/19 |
14.69
|
0.04
|
1.11
|
1.15
|
—
|
(0.05)
|
—
|
(0.05)
|
15.79
|
7.82
|
152,406
|
0.90(f)
|
1.01(f)
|
0.38(f)
|
19
|
|
Year
ended 04/30/19 |
15.16
|
0.04
|
0.58
|
0.62
|
(0.04)
|
(1.05)
|
—
|
(1.09)
|
14.69
|
4.73
|
169,801
|
0.90
|
0.93
|
0.28
|
46
|
|
Year
ended 04/30/18 |
14.93
|
0.03
|
1.09
|
1.12
|
(0.08)
|
(0.81)
|
—
|
(0.89)
|
15.16
|
7.35
|
149,641
|
0.90
|
0.96
|
0.18
|
52
|
|
| |||||||||||||||
|
Class
R5 | |||||||||||||||
|
Year
ended 12/31/22 |
21.16
|
0.09
|
(3.43)
|
(3.34)
|
(0.07)
|
—
|
(0.01)
|
(0.08)
|
17.74
|
(15.78)
|
7,887
|
0.74
|
0.74
|
0.49
|
36
|
|
Year
ended 12/31/21 |
18.74
|
0.01
|
4.06
|
4.07
|
(0.02)
|
(1.63)
|
—
|
(1.65)
|
21.16
|
22.08
|
9,028
|
0.77
|
0.77
|
0.06
|
58
|
|
Year
ended 12/31/20 |
15.71
|
0.07
|
3.12
|
3.19
|
(0.08)
|
(0.08)
|
—
|
(0.16)
|
18.74
|
20.30
|
13
|
0.77
|
0.77
|
0.46
|
43
|
|
Period
ended 12/31/19(g)
|
13.89
|
0.04
|
1.83
|
1.87
|
—
|
(0.05)
|
—
|
(0.05)
|
15.71
|
13.45
|
11
|
0.82(f)
|
0.82(f)
|
0.47(f)
|
19
|
|
| |||||||||||||||
|
Class
R6 | |||||||||||||||
|
Year
ended 12/31/22 |
21.36
|
0.10
|
(3.47)
|
(3.37)
|
(0.09)
|
—
|
(0.02)
|
(0.11)
|
17.88
|
(15.79)
|
483,088
|
0.71
|
0.71
|
0.52
|
36
|
|
Year
ended 12/31/21 |
18.88
|
0.03
|
4.10
|
4.13
|
(0.02)
|
(1.63)
|
—
|
(1.65)
|
21.36
|
22.23
|
745,149
|
0.68
|
0.68
|
0.15
|
58
|
|
Year
ended 12/31/20 |
15.83
|
0.07
|
3.15
|
3.22
|
(0.09)
|
(0.08)
|
—
|
(0.17)
|
18.88
|
20.31
|
704,706
|
0.77
|
0.77
|
0.46
|
43
|
|
Eight
months ended 12/31/19 |
14.72
|
0.05
|
1.11
|
1.16
|
—
|
(0.05)
|
—
|
(0.05)
|
15.83
|
7.87
|
271,711
|
0.77(f)
|
0.78(f)
|
0.52(f)
|
19
|
|
Year
ended 04/30/19 |
15.19
|
0.07
|
0.57
|
0.64
|
(0.06)
|
(1.05)
|
—
|
(1.11)
|
14.72
|
4.85
|
287,799
|
0.76
|
0.76
|
0.43
|
46
|
|
Year
ended 04/30/18 |
14.95
|
0.06
|
1.08
|
1.14
|
(0.09)
|
(0.81)
|
—
|
(0.90)
|
15.19
|
7.58
|
256,221
|
0.77
|
0.77
|
0.38
|
52
|
|
| |||||||||||||||
|
(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 eight months ended December 31, 2019 and the years
ended April 30, 2019 and 2018, respectively. |
|
(d)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended December
31, 2021, the portfolio turnover calculation
excludes
the value of securities purchased of $205,907,350 in connection with the acquisition of Invesco Select Companies Fund into the Fund.
|
|
(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 0.24% for the year ended December 31, 2020. |
|
(f)
|
Annualized.
|
7 Invesco
Main Street Small Cap Fund
|
(g)
|
Commencement
date after the close of business on May 24, 2019. |
8 Invesco
Main Street Small Cap Fund
Hypothetical Investment and Expense Information
In connection with the
final settlement reached between Invesco and certain of its affiliates with certain regulators, including the New York Attorney General’s
Office, the SEC and the Colorado Attorney General’s Office (the settlement) arising out of certain market timing and unfair pricing
allegations made against Invesco and certain of its affiliates, Invesco and certain of its affiliates agreed, among other things, to disclose
certain hypothetical information regarding investment and expense information to Fund shareholders. The chart below is intended to reflect
the annual and cumulative impact of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s
returns over a 10-year period. The example reflects the following:
◾
You
invest $10,000 in the Fund and hold it for the entire 10-year period;
◾
Your
investment has a 5% return before expenses each year;
◾
The
Fund’s current annual expense ratio includes, if applicable, any contractual fee waiver or expense reimbursement that would apply
for the period for which it was committed;
◾
Hypotheticals
both with and without any applicable initial sales charge applied; and
◾
There
is no sales charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio
for the Fund’s classes for any of the years shown. This is only a hypothetical presentation made to illustrate what expenses and
returns would be under the above scenarios; your actual returns and expenses are likely to differ (higher or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
(1.82%)
|
2.00%
|
5.96%
|
10.08%
|
14.37%
|
18.82%
|
23.44%
|
28.24%
|
33.23%
|
38.41%
|
|
End
of Year Balance |
$9,817.61
|
$10,199.51
|
$10,596.27
|
$11,008.47
|
$11,436.70
|
$11,881.58
|
$12,343.78
|
$12,823.95
|
$13,322.80
|
$13,841.06
|
|
Estimated
Annual Expenses |
$656.94
|
$111.09
|
$115.42
|
$119.91
|
$124.57
|
$129.42
|
$134.45
|
$139.68
|
$145.11
|
$150.76
|
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.89%
|
7.93%
|
12.13%
|
16.49%
|
21.02%
|
25.73%
|
30.62%
|
35.70%
|
40.98%
|
46.47%
|
|
End
of Year Balance |
$10,389.00
|
$10,793.13
|
$11,212.98
|
$11,649.17
|
$12,102.32
|
$12,573.10
|
$13,062.20
|
$13,570.32
|
$14,098.20
|
$14,646.62
|
|
Estimated
Annual Expenses |
$113.16
|
$117.56
|
$122.13
|
$126.88
|
$131.82
|
$136.95
|
$142.28
|
$147.81
|
$153.56
|
$159.53
|
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.86%
|
1.86%
|
1.86%
|
1.86%
|
1.86%
|
1.86%
|
1.86%
|
1.86%
|
1.11%
|
1.11%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.14%
|
6.38%
|
9.72%
|
13.16%
|
16.72%
|
20.38%
|
24.16%
|
28.06%
|
33.04%
|
38.22%
|
|
End
of Year Balance |
$10,314.00
|
$10,637.86
|
$10,971.89
|
$11,316.41
|
$11,671.74
|
$12,038.23
|
$12,416.23
|
$12,806.10
|
$13,304.26
|
$13,821.80
|
|
Estimated
Annual Expenses |
$188.92
|
$194.85
|
$200.97
|
$207.28
|
$213.79
|
$220.50
|
$227.43
|
$234.57
|
$144.91
|
$150.55
|
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.36%
|
1.36%
|
1.36%
|
1.36%
|
1.36%
|
1.36%
|
1.36%
|
1.36%
|
1.36%
|
1.36%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.64%
|
7.41%
|
11.32%
|
15.37%
|
19.57%
|
23.93%
|
28.44%
|
33.11%
|
37.96%
|
42.98%
|
|
End
of Year Balance |
$10,364.00
|
$10,741.25
|
$11,132.23
|
$11,537.44
|
$11,957.41
|
$12,392.66
|
$12,843.75
|
$13,311.26
|
$13,795.79
|
$14,297.96
|
|
Estimated
Annual Expenses |
$138.48
|
$143.52
|
$148.74
|
$154.15
|
$159.76
|
$165.58
|
$171.61
|
$177.85
|
$184.33
|
$191.04
|
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.86%
|
0.86%
|
0.86%
|
0.86%
|
0.86%
|
0.86%
|
0.86%
|
0.86%
|
0.86%
|
0.86%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.14%
|
8.45%
|
12.94%
|
17.62%
|
22.49%
|
27.56%
|
32.84%
|
38.34%
|
44.06%
|
50.03%
|
|
End
of Year Balance |
$10,414.00
|
$10,845.14
|
$11,294.13
|
$11,761.71
|
$12,248.64
|
$12,755.73
|
$13,283.82
|
$13,833.77
|
$14,406.49
|
$15,002.92
|
|
Estimated
Annual Expenses |
$87.78
|
$91.41
|
$95.20
|
$99.14
|
$103.24
|
$107.52
|
$111.97
|
$116.61
|
$121.43
|
$126.46
|
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.26%
|
8.70%
|
13.33%
|
18.16%
|
23.19%
|
28.44%
|
33.91%
|
39.62%
|
45.57%
|
51.77%
|
|
End
of Year Balance |
$10,426.00
|
$10,870.15
|
$11,333.22
|
$11,816.01
|
$12,319.37
|
$12,844.18
|
$13,391.34
|
$13,961.81
|
$14,556.58
|
$15,176.69
|
|
Estimated
Annual Expenses |
$75.58
|
$78.80
|
$82.15
|
$85.65
|
$89.30
|
$93.11
|
$97.07
|
$101.21
|
$105.52
|
$110.01
|
|
| ||||||||||
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
0.71%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.29%
|
8.76%
|
13.43%
|
18.30%
|
23.37%
|
28.66%
|
34.18%
|
39.94%
|
45.94%
|
52.20%
|
|
End
of Year Balance |
$10,429.00
|
$10,876.40
|
$11,343.00
|
$11,829.62
|
$12,337.11
|
$12,866.37
|
$13,418.34
|
$13,993.98
|
$14,594.32
|
$15,220.42
|
|
Estimated
Annual Expenses |
$72.52
|
$75.63
|
$78.88
|
$82.26
|
$85.79
|
$89.47
|
$93.31
|
$97.31
|
$101.49
|
$105.84
|
|
| ||||||||||
1
Your
actual expenses may be higher or lower than those shown.
2
The
hypothetical assumes you hold your investment for a full 10 years. Therefore, any applicable deferred sales charge that might apply in
year one for Class C has not been deducted.
9 Invesco
Main Street Small Cap Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
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Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Main Street Small Cap Fund®
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
O-MSS-PRO-1
|
Prospectus
April
28,
2023
Class:
A (VKMGX), C (VUSCX),
R (VUSRX), Y (VUSIX),
R5 (VUSJX), R6 (VUSSX)
Invesco Quality
Income Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-16
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A-17
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A-17
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A-18
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A-21
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A-24
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A-25
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A-26
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A-27
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Back
Cover |
Invesco Quality
Income Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is to provide a high level of current income, with liquidity and safety of principal.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares-Purchase and Redemption of Shares” on page L-1 of the statement
of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
|
Class:
|
A
|
C
|
R
|
Y
|
R5
|
R6
|
|
Management
Fees |
0.42%
|
0.42%
|
0.42%
|
0.42%
|
0.42%
|
0.42%
|
|
| ||||||
|
Distribution
and/or Service (12b-1) Fees |
0.24
|
1.00
|
0.50
|
None
|
None
|
None
|
|
| ||||||
|
Other
Expenses |
0.19
|
0.19
|
0.19
|
0.19
|
0.15
|
0.08
|
|
| ||||||
|
Total
Annual Fund Operating Expenses |
0.85
|
1.61
|
1.11
|
0.61
|
0.57
|
0.50
|
|
| ||||||
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 520%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in mortgage-backed
securities of any maturity or type guaranteed by, or secured by collateral that is guaranteed by, the U.S. government, its agencies, instrumentalities
or sponsored corporations (a Federal Agency), and in mortgage-backed securities privately issued in the United States, and in derivatives
and other instruments that have economic characteristics similar to such securities.
Mortgage-backed
securities generally consist of government mortgage pass-through
securities, collateralized mortgage obligations (CMOs), multiclass pass-through securities, private mortgage pass-through securities,
stripped mortgage securities and inverse floaters. The Fund historically has invested primarily in mortgage-backed securities that directly
or indirectly represent a participation in, or are secured by and payable from, mortgage loans secured by real property. Mortgage-backed
securities also include mortgage pass-through certificates representing participation interests in pools of mortgage loans originated
by the U.S. government or private lenders and guaranteed by U.S. government agencies such as the Government National Mortgage Association
(GNMA), the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC).
The
Fund may invest in real estate mortgage investment conduits (REMICs).
The
Fund may invest in stripped mortgage securities, which are derivative
multi-class mortgage securities.
The
Fund may also invest in asset-backed securities.
The
Fund may invest in illiquid or thinly traded securities. The Fund may also
invest in securities that are subject to resale restrictions such as those contained in Rule 144A promulgated under the Securities
Act of 1933. The Fund’s investments may include securities that do not produce immediate cash income, such as zero coupon securities
and payment-in-kind securities.
The
Fund may purchase and sell securities on a when-issued and delayed
delivery basis, which means that the Fund may buy or sell a security with payment and delivery taking place in the future. The Fund may
also engage in “to be announced” (TBA) transactions, which are transactions in which a fund buys or sells mortgage-backed
securities on a forward commitment basis. TBA transactions may be conducted as dollar rolls. The Fund may engage in short sales of TBA
mortgages, including short sales on TBA mortgages the Fund does not own.
The
Fund can invest in derivative instruments including swap contracts, options
and futures contracts.
The
Fund can use swap contracts, including interest rate swaps, to hedge
or adjust its exposure to interest rates. The Fund can also use swap
1 Invesco Quality
Income Fund
contracts,
including credit default swaps, to create long or short exposure to corporate or sovereign debt securities. The Fund can further use total
return swaps to gain exposure to a reference asset, and volatility swaps to adjust the volatility profile of the Fund.
The
Fund can use options, including swaptions (options on swaps), to manage
interest rate risk and options on bond or rate futures to manage interest rate exposure.
The
Fund can use futures contracts, including interest rate futures, to increase
or reduce its exposure to interest rate changes.
The
Fund utilizes active duration (i.e., making investments to reduce or increase
the sensitivity of the Fund’s portfolio to interest rate changes) and yield curve positioning (i.e. making investments that allow
the Fund to benefit from varying interest rates) for risk management and for generating alpha (return on investments in excess of the
Bloomberg U.S. Mortgage-Backed Securities Index).
The
portfolio managers utilize the Bloomberg U.S. Mortgage-Backed Securities
Index as a reference in structuring the portfolio. The portfolio managers decide on appropriate risk factors such as duration, the shape
of the U.S. Treasury yield curve, Federal Agency exposure, Federal Agency mortgage-backed security exposure, and Treasury Inflation-Protected
Security (TIPS) exposure relative to this index. The portfolio managers then employ proprietary technology to calculate appropriate position
sizes for each of these risk factors. In doing so, the portfolio managers consider recommendations from a globally interconnected team
of specialist decision makers in positioning the Fund to generate alpha.
The
portfolio managers generally rely upon a team of market-specific specialists
for trade execution and for assistance in determining efficient ways (in terms of cost-efficiency and selection) to implement those recommendations.
Specialist investment professionals employ both top down and bottom-up analysis in determining whether to recommend larger or smaller
exposure to specific risk factors. In general, these specialists will look for attractive risk-reward opportunities and securities that
best enable the Fund to pursue those opportunities. The portfolio managers consider the recommendations of these market-specific specialists
in adjusting the Fund’s risk exposures and security selection on a real-time basis using proprietary communication technology. Although
a variety of specialists provide input in the management of the Fund, the portfolio managers retain responsibility for ensuring the Fund
is positioned appropriately in terms of risk exposures and position sizes.
Decisions
to purchase or sell securities are determined by the relative value
considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply and demand, market dislocations
and situation-specific opportunities. The purchase or sale of securities may be related to a decision to alter the Fund’s macro
risk exposure (such as duration, yield curve positioning and sector exposure), a decision to limit or reduce the Fund’s exposure
to a particular security or issuer, degradation of an issuer’s credit quality or general liquidity needs of the Fund.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund engages in active and frequent trading of portfolio securities.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing. An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. The principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market
conditions
that 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, military conflict, acts of terrorism,
economic crisis or adverse investor sentiment generally. During
a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance
that specific investments held by the Fund will rise in value.
Debt
Securities Risk.
The prices of debt securities held by the Fund will be affected by changes in interest rates, the creditworthiness of the issuer and other
factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has a greater
impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the
proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s
distributable income because interest payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money
on investments in debt securities if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal
in a timely manner. Changes in an issuer’s financial strength, the market’s perception of such strength or in the credit rating
of the issuer or the security may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such
changes, which could result in buying a debt security at an inopportune time or failing to sell a debt security in advance of a price
decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may
decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially
increase the Fund’s portfolio turnover rate and transaction costs.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, are subject
to prepayment or call risk, which is the risk that a borrower's payments may be received earlier or later than expected due to changes
in prepayment rates on underlying loans. This could result in the Fund reinvesting these early payments at lower interest rates, thereby
reducing the Fund's income. Mortgage- and asset-backed securities also are subject to extension risk, which is the risk that an unexpected
rise in interest rates could reduce the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s
share price to fall. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of
mortgage-backed securities and could result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities
may be less liquid than other types of securities and the Fund may be unable to sell these securities at the time or price it desires.
During periods of market stress or high redemptions, the Fund may be forced to sell these securities at significantly reduced prices,
resulting in losses. Liquid privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods
of market stress. Privately-issued mortgage-related securities are not subject to the same underwriting requirements as those with government
or government-sponsored entity guarantees and, therefore, mortgage loans underlying privately-issued mortgage-related securities may have
less favorable collateral, credit risk, liquidity risk or other underwriting characteristics, and wider variances in interest rate, term,
size, purpose and borrower characteristics. The Fund
2 Invesco Quality
Income Fund
may
invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories or with lower
capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include subprime
mortgages.
Zero
Coupon or Pay-In-Kind Securities Risk.
The value, interest rates, and liquidity of non-cash paying instruments, such as zero coupon and pay-in-kind securities, are subject to
greater fluctuation than other types of securities. The higher yields and interest rates on pay-in-kind securities reflect the payment
deferral and increased credit risk associated with such instruments and that such investments may represent a higher credit risk than
loans that periodically pay interest.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions subject the Fund to market risk because the value or yield of a security at delivery may
be more or less than the purchase price or yield generally available when delivery occurs, and counterparty risk because the Fund relies
on the buyer or seller, as the case may be, to consummate the transaction. These transactions also have a leveraging effect on the Fund
because the Fund commits to purchase securities that it does not have to pay for until a later date, which increases the Fund’s
overall investment exposure and, as a result, its volatility.
TBA
Transactions Risk.
TBA transactions involve the risk of loss if the securities received are less favorable than what was anticipated by the Fund when entering
into the TBA transaction, or if the counterparty fails to deliver the securities. When the Fund enters into a short sale of a TBA mortgage
it does not own, the Fund may have to purchase deliverable mortgages to settle the short sale at a higher price than anticipated, thereby
causing a loss. As there is no limit on how much the price of mortgage securities can increase, the Fund’s exposure is unlimited.
The Fund may not always be able to purchase mortgage securities to close out the short position at a particular time or at an acceptable
price. In addition, taking short positions results in a form of leverage, which could increase the volatility of the Fund’s share
price.
Dollar
Roll Transactions Risk.
Dollar roll transactions occur in connection with TBA transactions and involve the risk that the market value of the securities the Fund
is required to purchase may decline below the agreed upon purchase price of those securities. Dollar roll transactions add a form of leverage
to the Fund’s portfolio, which may make the Fund’s returns more volatile and increase the risk of loss. In addition, dollar
roll transactions may increase the Fund’s portfolio turnover, which may result in increased brokerage costs and may lower the Fund’s
actual return.
LIBOR
Transition Risk.
The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference
or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and
borrow from one another in the relevant currency on an unsecured basis. Regulators and financial industry working groups in several jurisdictions
have worked over the past several years to identify alternative reference rates (“ARRs”) to replace LIBOR and to assist with
the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the Secured Overnight Financing Rate
(“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other interbank offered rates, such
as the Sterling Overnight Index Average
(“SONIA”) and
other replacement rates, which
could also be adopted. Consequently, the publication of most LIBOR rates ceased at the end of 2021, but a selection of widely used USD
LIBOR rates continues to be published until June 2023 to allow for an orderly transition away from these rates. Additionally, key regulators
have instructed banking institutions to cease entering into new contracts that reference these USD LIBOR settings after December 31, 2021,
subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on the Fund and the instruments in which the Fund invests. For example, there can be no assurance that the composition
or characteristics of any ARRs or financial instruments in which the Fund
invests
that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the
same volume or liquidity. Additionally, although regulators have generally prohibited banking institutions from entering into new contracts
that reference those USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy”
USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will
be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks
in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government
will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Liquidity
Risk.
The Fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire investment
in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of the Fund’s
securities become illiquid, the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly
reduced prices.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise
perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic
exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result
in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the
underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also
be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable
time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its
derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could
impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example,
derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly
during adverse market conditions.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and the Fund may be unable to dispose of the securities at a desirable time or price.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s
operations, universe of potential investment options, and return potential.
Active
Trading Risk.
Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
3 Invesco Quality
Income Fund
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management
of the Fund and, therefore, the ability of the Fund to achieve its investment objective.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The bar chart shows changes in the performance
of the Fund from year to year as of December 31. The performance table compares the Fund's performance to that of a broad-based/style-specific
securities market benchmark.
The
Fund's past performance (before and after taxes) is not necessarily an indication of its future performance.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund's website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
2.56%
|
|
Worst
Quarter |
September
30, 2022 |
-5.35%
|
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
5/31/1984
|
-16.21%
|
-1.68%
|
0.19%
|
|
Return
After Taxes on Distributions |
|
-17.17
|
-3.04
|
-1.32
|
|
Return
After Taxes on Distributions and Sale of
Fund
Shares |
|
-9.58
|
-1.77
|
-0.47
|
|
| ||||
|
Class
C |
8/13/1993
|
-13.98
|
-1.56
|
0.03
|
|
| ||||
|
Class
R |
5/15/2020
|
-12.76
|
-1.111
|
0.351
|
|
| ||||
|
Class
Y |
9/25/2006
|
-12.26
|
-0.57
|
0.88
|
|
| ||||
|
Class
R5 |
6/1/2010
|
-12.26
|
-0.55
|
0.93
|
|
| ||||
|
Class
R6 |
4/4/2017
|
-12.16
|
-0.472
|
0.852
|
|
| ||||
|
Bloomberg
U.S. Mortgage-Backed Securities Index
(reflects
no deduction for fees, expenses or taxes) |
|
-11.81
|
-0.53
|
0.74
|
|
| ||||
1
Performance shown prior to the inception
date is that of the Fund's Class A shares at net asset value restated to reflect the higher 12b-1 fees applicable to that class. Although
invested in the same portfolio of securities, Class R shares' returns of the Fund will be different from Class A shares' returns of the
Fund as they have different expenses.
2
Performance shown prior to the inception
date is that of the Fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although invested in
the same portfolio of securities, Class R6 shares' returns of the Fund will be different from Class A shares' returns of the Fund as they
have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual
after-tax returns depend on an investor’s tax situation and may differ from those shown, and after-tax returns shown are
not
relevant to investors who hold their Fund shares through tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans
or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Mario
Clemente |
Portfolio
Manager |
2017
|
|
| ||
|
Clint
Dudley, CFA |
Portfolio
Manager |
2010
|
|
| ||
|
Brian
Norris, CFA |
Portfolio
Manager |
2010
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related
4 Invesco Quality
Income Fund
services.
These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson or financial
adviser to recommend the Fund over another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s
website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to provide a high level of current income, with liquidity and safety of principal. The Fund’s
investment objective may be changed by the Board of Trustees (the Board) without shareholder approval.
The
Fund invests, under normal circumstances, at least 80% of its net assets
(plus any borrowings for investment purposes) in mortgage-backed securities of any maturity or type guaranteed by, or secured by collateral
that is guaranteed by, the U.S. government, its agencies, instrumentalities or sponsored corporations (a Federal Agency), and in mortgage-backed
securities privately issued in the United States, and in derivatives and other instruments that have economic characteristics similar
to such securities.
Mortgage-backed
securities generally consist of government mortgage pass-through
securities, CMOs, multiclass pass-through securities, private mortgage pass-through securities, stripped mortgage securities and inverse
floaters. The Fund historically has invested primarily in mortgage-backed securities that directly or indirectly represent a participation
in, or are secured by and payable from, mortgage loans secured by real property. Mortgage-backed securities also include mortgage pass-through
certificates representing participation interests in pools of mortgage loans originated by the U.S. government or private lenders and
guaranteed by U.S. government agencies such as GNMA, FNMA or FHLMC. Guarantees by GNMA are backed by the full faith and credit of the
U.S. government. While guarantees by FNMA and FHLMC are not backed explicitly by the full faith and credit of the U.S. government, FNMA
and FHLMC both have special authority to borrow from the U.S. government. Federal Agency securities include certificates issued by GNMA,
FNMA and FHLMC.
The
Fund may invest in REMICs. REMICs are private entities formed for the
purpose of holding a fixed pool of mortgages secured by an interest in real property. CMOs are debt obligations collateralized by a pool
of mortgage loans or mortgage pass-through securities held under an indenture issued by financial institutions or other mortgage lenders,
or issued or guaranteed by Federal Agencies. REMICs and CMOs generally are issued in a number of classes or series with different maturities.
The classes or series are retired in sequence as the underlying mortgages are repaid.
The
Fund may invest in stripped mortgage securities, which are derivative
multi-class mortgage securities. Stripped mortgage securities usually are structured with two classes that receive different proportions
of interest and principal distributions on a pool of underlying assets. A common type of stripped mortgage security will have one class
receiving some of the interest and most of the principal from the mortgage assets, while the other class receives most of the interest
and the remainder of the principal. In the most extreme cases, one class will receive all of the interest (the interest-only or IO class),
while the other class will receive all of the principal (the principal-only or PO class). Stripped mortgage securities may be issued by
Federal Agencies, or by private originators of, or investors in, mortgage loans, including savings and loan associations, mortgage banks,
commercial banks, investment banks and special purpose subsidiaries of the foregoing.
The
Fund may also invest in asset-backed securities. Asset-backed securities
are structured like mortgage-backed securities, but instead of mortgage loans or interests in mortgage loans, the underlying assets may
include items such as motor vehicle installment sales contracts, leases of real and personal property, and receivables from credit card
agreements.
The
Fund may invest in illiquid or thinly traded securities. The Fund may also
invest in securities that are subject to resale restrictions such as those contained in Rule 144A promulgated under the Securities
Act of 1933. The Fund’s investments may include securities that do not produce immediate cash income, such as zero coupon securities
and payment-in-kind securities. Zero coupon securities are debt securities that do not entitle the holder to any periodic payment of interest
prior to maturity or a specified date when the securities begin paying current interest. Payment-in-kind securities are debt securities
that pay interest through the issuance of additional securities.
The
Fund may purchase and sell securities on a when-issued and delayed
delivery basis, which means that the Fund may buy or sell a security with payment and delivery taking place in the future. The payment
obligation and the interest rate are fixed at the time the Fund enters into the commitment. No income accrues on such securities until
the date the Fund actually takes delivery of the securities. The Fund may also engage in TBA
transactions, which are transactions in which a fund buys or sells
mortgage-backed securities on a forward commitment basis. A TBA transaction typically does not designate the actual security to be delivered
and only includes an approximate principal amount at the time the TBA is entered into. TBA transactions may be conducted as dollar rolls.
The Fund may also engage in short sales of TBA mortgages, including short sales of TBA mortgages the Fund does not own. Generally, the
Fund will sell a TBA mortgage short to (1) take advantage of an expected decline in mortgage valuations or (2) to hedge against
the potential underperformance of the mortgage sector.
The
Fund can invest in derivative instruments including swap contracts, options
and futures contracts.
A
swap contract is an agreement between two parties pursuant to which
the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference
to specified securities, indexes, reference rates, commodities, currencies or other assets. The notional amount of a swap is based on
the nominal or face amount of a reference asset that is used to calculate payments made on that swap; the notional amount typically is
not exchanged between counterparties. The parties to the swap use variations in the value of the underlying asset to calculate payments
between them through the life of the swap. The Fund can use swap contracts, including interest rate swaps, to hedge or adjust its exposure
to interest rates. The Fund can also use swap contracts, including credit default swaps to create long or short exposure to corporate
or sovereign debt securities. The Fund can further use total return swaps to gain exposure to a reference asset, and volatility swaps
to adjust the volatility profile of the Fund.
An
option is a derivative financial instrument that reflects a contract between
two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation,
to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. The price of an option
derives from the difference between the reference price and the value of the underlying asset (commonly a stock, a bond, a currency or
a futures contract) plus a premium based on the time remaining until the expiration of the option. Other types of options exist, and options
can in principle be created for any type of valuable asset. The Fund can use options, including swaptions (options on swaps), to manage
interest rate risk and options on bond or rate futures to manage interest rate exposure.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of the futures contract
tends to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both
the purchaser and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures
contracts are settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying
a cash settlement amount on the settlement date.
5 Invesco Quality
Income Fund
The
Fund can use futures contracts, including interest rate futures, to increase or reduce its exposure to interest rate changes.
The
Fund utilizes active duration (i.e., making investments to reduce or increase
the sensitivity of the Fund’s portfolio to interest rate changes) and yield curve positioning (i.e., making investments that allow
the Fund to benefit from varying interest rates) for risk management and for generating alpha (return on investments in excess of the
Bloomberg U.S. Mortgage-Backed Securities Index).
The
portfolio managers utilize the Bloomberg U.S. Mortgage-Backed Securities
Index as a reference in structuring the portfolio. The portfolio managers decide on appropriate risk factors such as duration, the shape
of the U.S. Treasury yield curve, Federal Agency exposure, Federal Agency mortgage-backed security exposure, and TIPS exposure relative
to this index. The portfolio managers then employ proprietary technology to calculate appropriate position sizes for each of these risk
factors. In doing so, the portfolio managers consider recommendations from a globally interconnected team of specialist decision makers
in positioning the Fund to generate alpha.
The
portfolio managers generally rely upon a team of market-specific specialists
for trade execution and for assistance in determining efficient ways (in terms of cost-efficiency and selection) to implement those recommendations.
Specialist investment professionals employ both top down and bottom-up analysis in determining whether to recommend larger or smaller
exposure to specific risk factors. In general, these specialists will look for attractive risk-reward opportunities and securities that
best enable the Fund to pursue those opportunities. The portfolio managers consider the recommendations of these market-specific specialists
in adjusting the Fund’s risk exposures and security selection on a real-time basis using proprietary communication technology. Although
a variety of specialists provide input in the management of the Fund, the portfolio managers retain responsibility for ensuring the Fund
is positioned appropriately in terms of risk exposures and position sizes.
Decisions
to purchase or sell securities are determined by the relative value
considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply and demand, market dislocations
and situation-specific opportunities. The purchase or sale of securities may be related to a decision to alter the Fund’s macro
risk exposure (such as duration, yield curve positioning and sector exposure), a decision to limit or reduce the Fund’s exposure
to a particular security or issuer, degradation of an issuer’s credit quality or general liquidity needs of the Fund.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund engages in active and frequent trading of portfolio securities.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market
conditions
that 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, or adverse investor
sentiment generally. The value of the Fund’s investments may also go up or down due to factors that affect an individual issuer
or a particular industry or sector, such as changes in production costs and competitive conditions within an industry. In addition, natural
or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism,
economic crisis or other events may have a significant impact
on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances may also
impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in the financial
markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held
by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO)
member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine (and the potential
for further sanctions in response to Russia’s continued military activity)
may escalate.
These and other corresponding events, have had, and could continue
to have, severe negative effects on regional and global economic and financial markets, including increased volatility, reduced liquidity,
and overall uncertainty. The negative impacts may be particularly acute in certain sectors including, but not limited to, energy and financials.
Russia may take additional countermeasures or retaliatory actions (including cyberattacks), which could exacerbate negative consequences
on global financial markets. The duration of the conflict and corresponding sanctions and related events cannot be predicted. The foregoing
may result in a negative impact on Fund performance and the value of an investment in the Fund, even beyond any direct investment exposure
the Fund may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Debt
Securities Risk.
The prices of debt securities held by the Fund will be affected by changes in interest rates, the creditworthiness of the issuer and other
factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has a greater
impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the
proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s
distributable income because interest payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money
on investments in debt securities if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal
in a timely manner. If an issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a
6 Invesco Quality
Income Fund
default
in the payment of interest or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial
strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of
debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security
at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may
decline. Changes in central
bank policies could
also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate
and transaction costs and potentially lower the Fund’s performance returns.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, differ from
conventional debt securities because principal is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed
securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received earlier or later than
expected due to changes in prepayment rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a
result, the Fund may reinvest these early payments at lower interest rates, thereby reducing the Fund's income. Mortgage- and asset-backed
securities also are subject to extension risk. An unexpected rise in interest rates could reduce the rate of prepayments and extend the
life of the mortgage- and asset-backed securities, causing the price of the mortgage- and asset-backed securities and the Fund’s
share price to fall and would make the mortgage- and asset-backed securities more sensitive to interest rate changes. An unexpectedly
high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities and will
result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types
of securities and the Fund may be unable to sell these securities at the time or price it desires. During periods of market stress or
high redemptions, the Fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid privately-issued
mortgage-backed securities and asset-backed securities can become illiquid during periods of market stress. Privately-issued mortgage-related
securities are not subject to the same underwriting requirements for the underlying mortgages that are applicable to those mortgage-related
securities that have government or government-sponsored entity guarantees. As a result, the mortgage loans underlying privately-issued
mortgage-related securities may, and frequently do, have less favorable collateral, credit risk, liquidity risk or other underwriting
characteristics than government or government-sponsored mortgage-related securities and have wider variances in a number of terms including
interest rate, term, size, purpose and borrower characteristics. The Fund may invest in mortgage pools that include subprime mortgages,
which are loans made to borrowers with weakened credit histories or with lower capacity to make timely payments on their mortgages. Liquidity
risk is even greater for mortgage pools that include subprime mortgages.
Zero
Coupon or Pay-In-Kind Securities Risk.
Zero coupon and pay-in-kind securities may be subject to greater fluctuation in value and less liquidity in the event of adverse market
conditions than comparably rated securities paying cash interest at regular interest payment periods. Prices on non-cash-paying instruments
may be more sensitive to changes in the issuer’s financial condition, fluctuation in interest rates and market
demand/supply
imbalances than cash-paying securities with similar credit ratings, and thus may be more speculative. Investors may purchase zero coupon
and pay-in-kind securities at a price below the amount payable at maturity. Because such securities do not entitle the holder to any periodic
payments of interest prior to maturity, this prevents any reinvestment of interest payments at prevailing interest rates if prevailing
interest rates rise. The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit
risk associated with such instruments and that such investments may represent a higher credit risk than coupon loans. Pay-in-kind securities
may have a potential variability in valuations because their continuing accruals require continuing judgments about the collectability
of the deferred payments and the value of any associated collateral. Special tax considerations are associated with investing in certain
lower-grade securities, such as zero coupon or pay-in-kind securities.
When-Issued
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions are subject to market risk as the value or yield of a security at delivery may be more or
less than the purchase price or the yield generally available on securities when delivery occurs. In addition, the Fund is subject to
counterparty risk because it relies on the buyer or seller, as the case may be, to consummate the transaction, and failure by the counterparty
to complete the transaction may result in the Fund missing the opportunity of obtaining a price or yield considered to be advantageous.
These transactions have a leveraging effect on the Fund because the Fund commits to purchase securities that it does not have to pay for
until a later date. These investments therefore increase the Fund’s overall investment exposure and, as a result, its volatility.
Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made.
TBA
Transactions Risk.
TBA transactions involve the risk that the securities received may be less favorable than what was anticipated by the Fund when entering
into the TBA transaction. TBA transactions also involve the risk that the counterparty will fail to deliver the securities, exposing the
Fund to further losses. Whether or not the Fund takes delivery of the securities at the termination date of a TBA transaction, the Fund
will nonetheless be exposed to changes in the value of the underlying investments during the term of the agreement. If the Fund sells
short TBA mortgages that it does not own and the mortgages increase in value, the Fund may be required to pay a higher price than anticipated
to purchase the deliverable mortgages to settle the short sale and thereby incur a loss. A short position in TBA mortgages poses more
risk than holding the same TBA mortgages long. It is possible that the market value of the mortgage securities the Fund holds in long
positions will decline at the same time that the market value of the mortgage securities the Fund has sold short increases, thereby magnifying
any losses. The more the Fund pays to purchase the mortgage securities sold short, the more it will lose on the transaction, which adversely
affects its share price. The loss on a long position is limited to what the Fund originally paid for the TBA mortgage, together with any
transaction costs. In short transactions, there is no limit on how much the price of a security can increase, thus the Fund’s exposure
is theoretically unlimited. The Fund normally closes a short sale of TBA mortgages that it does not own by purchasing mortgage securities
on the open market and delivering them to the broker. The Fund may not always be able to complete or “close out” the short
position by purchasing mortgage securities at a particular time or at an acceptable price. The Fund incurs a loss if the Fund is required
to buy the deliverable mortgage securities at a time when they have appreciated in value from the date of the short sale. The Fund will
incur increased transaction costs associated with selling TBA mortgages short. In addition, taking short positions results in a form of
leverage. As a result, changes in the value of a Fund’s investments will have a larger effect on its share price than if it did
not engage in these transactions.
Dollar
Roll Transactions Risk.
Dollar roll transactions occur in connection with TBA transactions and involve the risk that the market value of the securities the Fund
is required to purchase may decline below the
7 Invesco Quality
Income Fund
agreed
upon repurchase price of those securities. When the Fund uses a dollar roll transaction, it is also subject to the risk that the other
party to the agreement will not be able to perform. If the broker/dealer to whom the Fund sells securities becomes insolvent, the Fund’s
right to purchase or repurchase securities may be restricted. Dollar roll transactions add a form of leverage to the Fund’s portfolio
because the Fund makes a commitment to purchase a security at a future date for an agreed upon price. Leverage may make the Fund’s
returns more volatile and increase the risk of loss. In addition, dollar roll transactions may increase the Fund’s portfolio turnover
rate because they generally are rolled over every month. Increased portfolio turnover may result in increased brokerage costs which may
lower the Fund’s actual return.
LIBOR
Transition Risk.
The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference
or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and
borrow from one another in the relevant currency on an unsecured basis. In the years following the 2008 financial crisis, the integrity
of LIBOR was increasingly questioned because several banks contributing to its calculation were accused of rate manipulation and because
of a general contraction in the unsecured interbank lending market. As a result, regulators and financial industry working groups in several
jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to replace LIBOR and
to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the Secured Overnight
Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other interbank offered
rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on the Fund and the instruments in which the Fund invests. For example, there can be no assurance that the composition
or characteristics of any ARRs or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the
same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators
have generally prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue
to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered
into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments
when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held
by the Fund could result in losses to the Fund.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government
will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Liquidity
Risk.
The Fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire investment
in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is privately
placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during periods
of market stress. If a significant amount of the Fund’s securities become illiquid, the Fund may
not
be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between the Fund and a counterparty. When the Fund is owed money on an OTC derivative, the Fund is dependent on the counterparty
to pay or, in some cases, deliver the underlying asset, unless the Fund can otherwise sell its derivative contract to a third party prior
to its expiration. Many counterparties are financial institutions such as banks and broker-dealers and their creditworthiness (and ability
to pay or perform) may be negatively impacted by factors affecting financial institutions generally. In addition, in the event that a
counterparty becomes bankrupt or insolvent, the Fund’s ability to recover the collateral that the Fund has on deposit with the counterparty
could be delayed or impaired. For derivatives traded on a centralized exchange, the Fund generally is dependent upon the solvency of the
relevant exchange clearing house (which acts as a guarantor for each contractual obligation under such derivatives) for payment on derivative
instruments for which the Fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a
loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless of the size of the Fund’s initial investment. Leverage may therefore
make the Fund’s returns more volatile and increase the risk of loss. In certain market conditions, losses on derivative instruments
can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions becoming a larger
percentage of the Fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional investments and the Fund
may be unable to sell or exit its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. To the extent that the Fund is unable to
exit a derivative position because of market illiquidity, the Fund may not be able to prevent further losses of value in its derivatives
holdings and the liquidity of the Fund and its ability to meet redemption requests may be impaired to the extent that a substantial portion
of the Fund’s otherwise liquid assets must be used as margin. Another consequence of illiquidity is that the Fund may be required
to hold a derivative instrument to maturity and take or make delivery of the underlying asset that the Adviser would otherwise avoid.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often
8 Invesco Quality
Income Fund
impose
a maximum permissible price movement on each futures contract for each trading session. The Fund may be disadvantaged if it is prohibited
from executing a trade outside the daily permissible price movement.
◾
Options
Risk. If the Fund sells a put option, there is a risk that the
Fund may be required to buy the underlying investment at a disadvantageous price. If the Fund sells a call option, there is a risk that
the Fund may be required to sell the underlying investment at a disadvantageous price. If the Fund sells a call option on an investment
that the Fund owns (a “covered call”) and the investment has increased in value when the option is exercised, the Fund will
be required to sell the investment at the call price and will not be able to realize any of the investment’s value above the call
price. Options may involve economic leverage, which could result in greater price volatility than other investments.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for the Fund. Swap agreements are privately negotiated in the over-the-counter market and
may be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following execution
of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and the Fund faces the central
clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing house.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of the Fund’s taxable income or gains, and may limit or prevent the Fund from using certain types of
derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to implement or require
the Fund to change its investment strategy. Derivatives strategies may not always be successful. For example, to the extent that
the Fund uses derivatives for hedging or to gain or limit exposure to a particular market or market segment, there may be imperfect correlation
between the value of the derivative instrument and the value of the instrument being hedged or the relevant market or market segment,
in which case the Fund may not realize the intended benefits. There is also the risk that during adverse market conditions, an instrument
which would usually operate as a hedge provides no hedging benefits at all. The Fund’s use of derivatives may be limited by the
requirements for taxation of the Fund as a regulated investment company.
Rule
144A Securities and Other Exempt Securities Risk. The Fund may
invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption from registration
under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically may be resold
only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers, or in limited
quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration. Although
such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company Act of 1940,
as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities at a particular
time, the Fund may have difficulty selling such securities at a desirable time or price. As a result, the Fund’s investment in such
securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities may require their qualified institutional
buyers
(such as the Fund) to keep certain offering information confidential, which could adversely affect the ability of the Fund to sell such
securities.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan or other
legislation aimed at addressing financial or economic conditions, the threat of a federal government shutdown, and threats not to increase
or suspend the federal government’s debt limit, may affect investor and consumer confidence, increase volatility in the financial
markets, perhaps suddenly and to a significant degree, result in higher interest rates, and even raise concerns about the U.S. government’s
credit rating and ability to service its debt. Such changes and events may adversely impact the Fund’s operations, universe of potential
investment options, and return potential.
Active
Trading Risk.
Active trading of portfolio securities may result in high brokerage costs, which may lower the Fund’s actual return. Active trading
also may increase the proportion of the Fund’s gains that are short term, which are taxed at a higher rate than long term gains.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. There can be no guarantee that the Adviser’s investment techniques or investment
decisions will produce the desired results. Additionally, legislative, regulatory, or tax developments may affect the investments or investment
strategies available to the Adviser in connection with managing the Fund, which may also adversely affect the ability of the Fund to achieve
its investment objective.
Portfolio
Holdings
A
description of the Fund's policies and procedures with respect to the disclosure of the Fund's portfolio holdings is available in the
Fund's SAI, which is available at www.invesco.com/us.
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other investment portfolios
that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance of the Fund’s day-to-day
management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as successor in interest
to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and
9 Invesco Quality
Income Fund
swaps,
which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described in the Fund's
SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps markets. The CFTC
has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies or this prospectus.
Adviser
Compensation
During
the fiscal year ended December 31, 2022, the Adviser received compensation of 0.41% of the Fund’s average daily net assets,
after fee waiver and/or expense reimbursement, if any.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Mario
Clemente, Portfolio Manager, who has been responsible for the Fund since 2017 and has been associated with Invesco and/or its affiliates
since 2014.
◾
Clint
Dudley, CFA, Portfolio Manager, who has been responsible for the Fund since 2010 and has been associated with Invesco and/or its affiliates
since 1998.
◾
Brian
Norris, CFA, Portfolio Manager, who has been responsible for the Fund since 2010 and has been associated with Invesco and/or its affiliates
since 2001.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 4.25% initial sales charge as listed under the heading “Category II Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist primarily of ordinary income.
Dividends
The
Fund generally declares dividends from net investment income daily and pays them monthly.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the
Fund
may experience a current year loss, it may nonetheless distribute prior year capital gains.
10 Invesco Quality
Income Fund
The
financial highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of
the Fund or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
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
|
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 | ||||||||||||
|
Year
ended 12/31/22 |
$11.36
|
$0.16
|
$(1.57)
|
$(1.41)
|
$(0.29)
|
$9.66
|
(12.52)%(d)
|
$511,108
|
0.85%(d)
|
0.85%(d)
|
1.53%(d)
|
520%
|
|
Year
ended 12/31/21 |
11.90
|
0.07
|
(0.25)
|
(0.18)
|
(0.36)
|
11.36
|
(1.55)(e)
|
697,347
|
0.84(e)
|
0.86(e)
|
0.57(e)
|
401
|
|
Year
ended 12/31/20 |
11.72
|
0.26
|
0.36
|
0.62
|
(0.44)
|
11.90
|
5.33(e)
|
816,715
|
0.83(e)
|
0.85(e)
|
2.15(e)
|
979
|
|
Year
ended 12/31/19 |
11.48
|
0.35
|
0.33
|
0.68
|
(0.44)
|
11.72
|
5.97(d)
|
301,996
|
0.92(d)
|
0.92(d)
|
3.04(d)
|
448
|
|
Year
ended 12/31/18 |
11.95
|
0.36
|
(0.38)
|
(0.02)
|
(0.45)
|
11.48
|
(0.15)(d)
|
308,880
|
0.94(d)
|
0.94(d)
|
3.10(d)
|
416
|
|
| ||||||||||||
|
Class
C | ||||||||||||
|
Year
ended 12/31/22 |
11.28
|
0.08
|
(1.55)
|
(1.47)
|
(0.21)
|
9.60
|
(13.12)
|
19,025
|
1.61
|
1.61
|
0.77
|
520
|
|
Year
ended 12/31/21 |
11.82
|
(0.02)
|
(0.25)
|
(0.27)
|
(0.27)
|
11.28
|
(2.35)(e)
|
32,752
|
1.62(e)
|
1.62(e)
|
(0.21)(e)
|
401
|
|
Year
ended 12/31/20 |
11.64
|
0.16
|
0.37
|
0.53
|
(0.35)
|
11.82
|
4.57(e)
|
53,821
|
1.60(e)
|
1.60(e)
|
1.38(e)
|
979
|
|
Year
ended 12/31/19 |
11.40
|
0.27
|
0.32
|
0.59
|
(0.35)
|
11.64
|
5.19
|
8,659
|
1.68
|
1.68
|
2.28
|
448
|
|
Year
ended 12/31/18 |
11.87
|
0.27
|
(0.38)
|
(0.11)
|
(0.36)
|
11.40
|
(0.93)
|
9,179
|
1.70
|
1.70
|
2.34
|
416
|
|
| ||||||||||||
|
Class
R | ||||||||||||
|
Year
ended 12/31/22 |
11.35
|
0.13
|
(1.57)
|
(1.44)
|
(0.26)
|
9.65
|
(12.76)
|
19,497
|
1.11
|
1.11
|
1.27
|
520
|
|
Year
ended 12/31/21 |
11.89
|
0.03
|
(0.25)
|
(0.22)
|
(0.32)
|
11.35
|
(1.84)
|
24,551
|
1.12
|
1.12
|
0.29
|
401
|
|
Period
ended 12/31/20(f)
|
11.79
|
0.14
|
0.21
|
0.35
|
(0.25)
|
11.89
|
2.99
|
27,785
|
1.10(g)
|
1.10(g)
|
1.88(g)
|
979
|
|
| ||||||||||||
|
Class
Y | ||||||||||||
|
Year
ended 12/31/22 |
11.40
|
0.18
|
(1.57)
|
(1.39)
|
(0.31)
|
9.70
|
(12.26)
|
82,042
|
0.61
|
0.61
|
1.77
|
520
|
|
Year
ended 12/31/21 |
11.95
|
0.10
|
(0.26)
|
(0.16)
|
(0.39)
|
11.40
|
(1.35)
|
106,019
|
0.57
|
0.62
|
0.84
|
401
|
|
Year
ended 12/31/20 |
11.77
|
0.29
|
0.36
|
0.65
|
(0.47)
|
11.95
|
5.59
|
185,925
|
0.52
|
0.61
|
2.46
|
979
|
|
Year
ended 12/31/19 |
11.53
|
0.38
|
0.33
|
0.71
|
(0.47)
|
11.77
|
6.21
|
20,339
|
0.68
|
0.68
|
3.28
|
448
|
|
Year
ended 12/31/18 |
12.00
|
0.39
|
(0.38)
|
0.01
|
(0.48)
|
11.53
|
0.11
|
13,189
|
0.70
|
0.70
|
3.34
|
416
|
|
| ||||||||||||
|
Class
R5 | ||||||||||||
|
Year
ended 12/31/22 |
11.37
|
0.19
|
(1.57)
|
(1.38)
|
(0.32)
|
9.67
|
(12.26)
|
139
|
0.57
|
0.57
|
1.81
|
520
|
|
Year
ended 12/31/21 |
11.91
|
0.10
|
(0.25)
|
(0.15)
|
(0.39)
|
11.37
|
(1.29)
|
489
|
0.56
|
0.57
|
0.85
|
401
|
|
Year
ended 12/31/20 |
11.76
|
0.30
|
0.33
|
0.63
|
(0.48)
|
11.91
|
5.42
|
395
|
0.46
|
0.46
|
2.52
|
979
|
|
Year
ended 12/31/19 |
11.52
|
0.40
|
0.32
|
0.72
|
(0.48)
|
11.76
|
6.36
|
132,657
|
0.55
|
0.55
|
3.41
|
448
|
|
Year
ended 12/31/18 |
12.00
|
0.40
|
(0.39)
|
0.01
|
(0.49)
|
11.52
|
0.16
|
142,812
|
0.56
|
0.56
|
3.48
|
416
|
|
| ||||||||||||
|
Class
R6 | ||||||||||||
|
Year
ended 12/31/22 |
11.40
|
0.20
|
(1.57)
|
(1.37)
|
(0.33)
|
9.70
|
(12.16)
|
21,040
|
0.50
|
0.50
|
1.88
|
520
|
|
Year
ended 12/31/21 |
11.95
|
0.11
|
(0.26)
|
(0.15)
|
(0.40)
|
11.40
|
(1.30)
|
33,442
|
0.51
|
0.51
|
0.90
|
401
|
|
Year
ended 12/31/20 |
11.77
|
0.30
|
0.36
|
0.66
|
(0.48)
|
11.95
|
5.69
|
33,032
|
0.46
|
0.46
|
2.52
|
979
|
|
Year
ended 12/31/19 |
11.53
|
0.40
|
0.32
|
0.72
|
(0.48)
|
11.77
|
6.35
|
22,379
|
0.55
|
0.55
|
3.41
|
448
|
|
Year
ended 12/31/18 |
12.00
|
0.40
|
(0.38)
|
0.02
|
(0.49)
|
11.53
|
0.25
|
19,097
|
0.56
|
0.56
|
3.48
|
416
|
|
| ||||||||||||
|
(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 year ended December
31, 2020, the portfolio turnover calculation
excludes
the value of securities purchased of $1,606,141,382 in connection with the acquisition of Invesco Oppenheimer Limited-Term Government
Fund into the Fund. |
|
(d)
|
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 0.24% for the years ended December 31, 2022,
2019
and 2018, 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 0.24% and 0.99% for Class A and Class C shares for
the
years ended December 31, 2021 and 2020, respectively. |
|
(f)
|
Commencement
date of May 15, 2020 for Class R. |
|
(g)
|
Annualized.
|
11 Invesco Quality
Income Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco Quality
Income Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
VK-QINC-PRO-1
|
Prospectus
April
28,
2023
Class:
A (OACIX), C (OCCIX),
R (ONCIX), Y (OYCIX),
R5 (PXCIX), R6 (PXCCX)
Invesco
Select Risk: Conservative Investor Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission
(CFTC) have not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary
is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
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Back
Cover |
Invesco
Select Risk: Conservative Investor Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is to seek total return.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 21%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual funds advised by Invesco Advisers, Inc. (Invesco
or the Adviser) and exchange-traded funds (ETFs) and other pooled investment vehicles advised by Invesco Capital Management LLC (Invesco
Capital) or mutual funds, ETFs and other pooled investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco and
Invesco Capital are affiliates of each other as they are both indirect wholly-owned subsidiaries of Invesco Ltd.
The
Fund generally categorizes each underlying fund as an equity, fixed-income,
or alternative fund based on its investment profile. The Fund typically allocates its assets among underlying funds, and within a pre-determined
percentage range for its assets in equity funds, as determined by the Adviser in accordance with its outlook for the economy, the financial
markets and the relative market valuations of the underlying funds. Under normal market conditions, the Adviser selects underlying funds
based on its determination that they could provide total return for the Fund.
The
Fund generally invests between 15% and 30% of its assets in equity
funds. Such funds invest in equity securities of domestic and foreign companies, including small, medium and large market capitalization
companies, and growth and value stocks. Equity securities include common stock, preferred stock, rights and warrants, and securities convertible
into common stock. Foreign equities are securities of issuers outside of the United States, including issuers in emerging or developing
markets, i.e., those that are generally in the early stages of their industrial cycles. Underlying funds investing primarily in real estate
securities, listed infrastructure securities, and master limited partnerships (MLPs) will be deemed to be “equity funds” for
purposes of the Fund’s allocation strategy.
The
Fund generally invests the remainder of its assets in a flexible combination
of fixed-income and alternative funds. Fixed-income funds generally invest in fixed income instruments such as investment-grade debt securities,
below-investment-grade high yield securities (or “junk” bonds), government and government-sponsored securities, corporate
bonds, securitized products, and inflation-protected debt securities. Alternative funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment strategies, including primarily through the use of derivatives,
that aim to offer diversification beyond traditional equity and fixed-income securities and may seek to take long and short positions
to manage exposure to certain asset classes. The Fund is not required to invest its assets in any specified percentages of fixed-income
or alternative funds. The Fund does not limit its investment in underlying funds that invest primarily in foreign securities.
The
Fund’s investment in underlying funds is subject to any limitations imposed
by the Investment Company Act of 1940 or any rules thereunder.
1 Invesco
Select Risk: Conservative Investor Fund
The
Fund may temporarily exceed its percentage range for its assets in equity
funds for short periods and may alter the percentage range when it deems appropriate. The Adviser will monitor the markets and allocate
assets among the underlying funds based on changing market or economic conditions and investment opportunities. The Adviser monitors the
underlying fund selections and periodically rebalances the Fund’s investments to bring them back within their asset allocation target
ranges. In response to changing market or economic conditions, the Adviser may change any or all of the underlying funds managed by Invesco
and/or its affiliates, including using funds that may be created in the future, or change the Fund’s asset allocation target ranges
at any time, in each case without prior approval from or notice to shareholders.
The
Fund may invest directly in derivatives to hedge its cash position and
manage the duration of the Fund’s portfolio, including but not limited to futures, total return swaps, and forward contracts. The
Fund may also use other types of derivatives that are consistent with its investment objective and investment strategies. In addition,
the Fund will gain exposure to derivatives through its investments in underlying funds.
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money market mutual funds in the Invesco family of funds. This may also include
shares of funds that provide exposure to inflation protected debt securities and short-term investment grade debt securities. This will
also generally occur at times when there is an inability to immediately invest funds received from purchases of Fund shares or from redemptions
of other investments or to maintain liquidity.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. Because the Fund is a fund of funds, the Fund is subject to the risks associated with the underlying funds in which
it invests. The principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism, economic crisis or adverse investor sentiment
generally. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well,
there can be no assurance that specific investments held by an underlying fund will rise in value.
Fund
of Funds Risk. The Fund’s performance depends on that of
the underlying funds in which it invests. Accordingly, the risks associated with an investment in the Fund include the risks associated
with investments in the underlying funds. The Fund will indirectly pay a proportional share of the fees and expenses of the underlying
funds in which it invests. There are risks that the Fund will vary from its target weightings (if any) in the underlying funds, that the
underlying funds will not achieve their investment objectives, that the underlying funds’ performance may be lower than their represented
asset classes, and that the Fund may withdraw its investments in an underlying fund at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) an
exchange-traded
fund’s shares may trade above or below its net asset value; (2) an active trading market for the exchange-traded fund’s shares
may not develop or be maintained; (3) trading an exchange-traded fund’s shares may be halted by the listing exchange; (4) a passively-managed
exchange-traded fund may not track the performance of the reference asset; and (5) a passively-managed exchange-traded fund may hold troubled
securities. Investment in exchange-traded funds may involve duplication of management fees and certain other expenses, as the Fund or
an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded funds in which it invests. Further,
certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged, which may result in economic leverage,
permitting the Fund or an underlying fund to gain exposure that is greater than would be the case in an unlevered instrument, and potentially
resulting in greater volatility.
Allocation
Risk.
The Fund’s investment performance depends, in part, on how its assets are allocated among the underlying funds or asset classes.
The Adviser’s evaluations and assumptions regarding the asset classes or the underlying funds in which the Fund invests may be incorrect,
causing the Fund to be invested (or not invested) in one or more asset classes or underlying funds at an inopportune time, which could
negatively affect the Fund’s performance.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. An underlying
fund’s adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune
time or failing to sell a debt security in advance of a price decline or other credit event.
Variable
or Floating Rate Instruments.
Variable or floating rate instruments are securities that provide for a periodic adjustment in the interest rate paid on the obligation.
The interest rates for securities with variable interest rates are readjusted on set dates (such as the last day of the month or calendar
quarter) and the interest rates for securities with floating rates are reset whenever a specified interest rate change occurs. Variable
or floating interest rates generally reduce changes in the market price of securities from their original purchase price because, upon
readjustment, such rates approximate market rates. Accordingly, as market interest rates decrease or increase, the potential for capital
appreciation or depreciation is less for variable or floating rate securities than for fixed rate obligations.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Municipal
Securities Risk. The
risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the
2 Invesco
Select Risk: Conservative Investor Fund
security.
Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a
decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate
the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status
of municipal securities.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially
increase an underlying fund’s portfolio turnover rate and transaction costs.
Defaulted
Securities Risk.
Defaulted securities pose a greater risk that principal will not be repaid than non-defaulted securities. Defaulted securities and any
securities received in an exchange for such securities may be subject to restrictions on resale.
High
Yield Debt Securities (Junk Bond) Risk.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject an underlying fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities.
Prices of high yield debt securities tend to be very volatile.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received
earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in an underlying fund reinvesting
these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage- and asset-backed securities also
are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing
the price of the mortgage- and asset-backed securities and an underlying fund’s share price to fall. An unexpectedly high rate of
defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities and will result in losses
to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of
securities and an underlying fund may be unable to sell these securities at the time or price it desires. During periods of market stress
or high redemptions, an underlying fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid
privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods of market stress. Privately
issued mortgage-related securities are not subject to the same underwriting requirements as those with government or government-sponsored
entity guarantees and, therefore, mortgage loans underlying privately issued mortgage-related securities may have less favorable collateral,
credit risk, liquidity risk or other underwriting characteristics, and wider variances in interest rate, term, size, purpose and borrower
characteristics. An underlying fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with
weakened credit histories or with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage
pools that include subprime mortgages.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market
anticipation of defaults, and investor aversion
to
CLO securities as a class. The risks of CLOs will be greater if an underlying fund invests in CLOs that hold loans of uncreditworthy borrowers
or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
Senior
Loans and Other Loans Risk. Risks associated with an investment
in Senior Loans include credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair an underlying fund’s ability to sell Senior
Loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments.
Extended trade settlement periods may result in cash not being immediately available to an underlying fund. As a result, an underlying
fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding
Senior Loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans can be affected
by and sensitive to changes in government regulation and to economic downturns in the United States and abroad. Senior loans are also
subject to the risk that a court could subordinate a senior loan or take other action detrimental to the holders of senior loans. Loans
are subject to the risk that the value of the collateral, if any, securing a loan may decline, be insufficient to meet the obligations
of the borrower, or be difficult to liquidate. Loan investments are often issued in connection with highly leveraged transactions which
are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy.
These risks could cause an underlying fund to lose income or principal on a particular investment, which in turn could affect an underlying
fund’s returns.
Inflation-Indexed
Securities Risk.
The values of inflation-indexed securities generally fluctuate in response to changes in real interest rates. Because of the inflation-adjustment
feature, these securities typically have lower yields than traditional fixed-rate securities with similar maturities. Normally inflation-indexed
securities will decline in price when real interest rates rise which could cause losses for the Fund or an underlying fund. As a result,
an underlying fund's income from its investments in these securities is likely to fluctuate considerably more than the income distributions
of its investments in more traditional fixed income securities.
TBA
Transactions Risk.
TBA transactions involve the risk of loss if the securities received are less favorable than what was anticipated by an underlying fund
when entering into the TBA transaction, or if the counterparty fails to deliver the securities. When an underlying fund enters into a
short sale of a TBA mortgage it does not own, an underlying fund may have to purchase deliverable mortgages to settle the short sale at
a higher price than anticipated, thereby causing a loss. As there is no limit on how much the price of mortgage securities can increase,
an underlying fund’s exposure is unlimited. An underlying fund may not always be able to purchase mortgage securities to close out
the short position at a particular time or at an acceptable price. In addition, taking short positions results in a form of leverage,
which could increase the volatility of an underlying fund’s share price.
REIT
Risk/Real Estate Risk.
Investments in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological
factors that affect property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap
companies, may be more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt
obligations, held by an underlying fund, an underlying fund may acquire real estate directly, which involves additional risks such as
3 Invesco
Select Risk: Conservative Investor Fund
environmental
liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Zero
Coupon or Pay-In-Kind Securities Risk.
The value, interest rates, and liquidity of non-cash paying instruments, such as zero coupon and pay-in-kind securities, are subject to
greater fluctuation than other types of securities. The higher yields and interest rates on pay-in-kind securities reflect the payment
deferral and increased credit risk associated with such instruments and that such investments may represent a higher credit risk than
loans that periodically pay interest.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. Regulators and financial industry working groups
in several jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to replace
LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the Secured
Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other interbank
offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which underlying fund invests that utilize ARRs will be
similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
Additionally, although regulators have generally prohibited banking institutions from entering into new contracts that reference those
USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and
implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy”
USD LIBOR instruments held by an underlying fund could result in losses to an underlying fund.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of an underlying
fund’s securities become illiquid, an underlying fund may not be able to timely pay redemption proceeds and may need to sell securities
at significantly reduced prices.
Borrowing
Risk.
Borrowing money
to buy securities exposes an underlying fund to leverage and will
cause an underlying fund’s share price to be more volatile because leverage will exaggerate the effect of any increase or decrease
in the value of an underlying fund’s portfolio securities. Borrowing money may also require an underlying fund to liquidate positions
when it may not be advantageous to do so. In addition,
an underlying fund will incur interest expenses and other fees
on borrowed money. There can be no assurance that an underlying fund’s borrowing strategy
will enhance and not reduce the underlying fund’s returns.
Foreign
Securities Risk.
An underlying fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation
policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk
of
the
possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which an underlying fund could lose its entire
investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign companies
generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing and
accounting controls, and may therefore be more susceptible to fraud or corruption. There may be less public information available about
foreign companies than U.S. companies, making it difficult to evaluate those foreign companies. Unless an underlying fund has hedged its
foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause
the value of securities denominated in such foreign currency (or other instruments through which an underlying fund has exposure to foreign
currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies,
if used, are not always successful.
Foreign
Government Debt Risk. Investments
in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those
relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment
of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and an underlying
fund may have limited recourse in the event of a default against the defaulting government. Without the approval of debt holders, some
governmental debtors have in the past been able to reschedule or restructure their debt payments or declare moratoria on payments.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede an underlying fund’s
ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change
quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization
of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country,
protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Commodity
Risk.
An underlying fund may have investment exposure to the commodities markets and/or a particular sector of the commodities markets, which
may subject an underlying fund to greater volatility than investments in traditional securities, such as stocks and bonds. Volatility
in the commodities markets may be caused by changes in overall market movements, domestic and foreign political and economic events and
policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning interest rates,
domestic and foreign inflation rates, investment and trading activities of mutual funds, hedge funds and commodities funds, and factors
such as drought, floods, weather, livestock disease, embargoes, tariffs and other regulatory developments, or
4 Invesco
Select Risk: Conservative Investor Fund
supply
and demand disruptions. Because an underlying fund’s performance may be linked to the performance of volatile commodities, investors
should be willing to assume the risks of potentially significant fluctuations in the value of underlying fund’s shares.
Geographic
Focus Risk.
An underlying fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single
country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant
negative impact on an underlying fund’s investment performance.
Unrated
Securities Risk. Because an underlying fund purchases securities
that are not rated by any nationally recognized statistical rating organization, the investment adviser may internally assign ratings
to those securities, after assessing their credit quality and other factors, in categories similar to those of nationally recognized statistical
rating organizations. There can be no assurance, nor is it intended, that the investment adviser’s credit analysis process is consistent
or comparable with the credit analysis process used by a nationally recognized statistical rating organization. Unrated securities are
considered “investment-grade” or “below-investment-grade” if judged by the investment adviser to be comparable
to rated investment- grade or below-investment-grade securities. The investment adviser’s rating does not constitute a guarantee
of the credit quality. In addition, some unrated securities may not have an active trading market or may trade less actively than rated
securities, which means that an underlying fund might have difficulty selling them promptly at an acceptable price.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions subject an underlying fund to market risk because the value or yield of a security at delivery
may be more or less than the purchase price or yield generally available when delivery occurs, and counterparty risk because an underlying
fund relies on the buyer or seller, as the case may be, to consummate the transaction. These transactions also have a leveraging effect
on an underlying fund because an underlying fund commits to purchase securities that it does not have to pay for until a later date, which
increases an underlying fund’s overall investment exposure and, as a result, its volatility.
Investing
in Stocks Risk.
The value of an underlying fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant
short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have
unexpected negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets
may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations
and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many
instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially
less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller
companies may be subject to wider price fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable
price when it wants to sell them. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize
a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many
other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment strategies will yield uncorrelated performance under all market conditions. In addition, the particular mix of
alternative investments in an underlying fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to
the risk that its alternative investments may undergo a correlation shift, resulting in returns that are correlated with the broader market
and/or with an underlying fund’s other alternative investments.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration
5 Invesco
Select Risk: Conservative Investor Fund
requirements
typically is less active than the market for publicly-traded securities. Rule 144A and other exempt securities, which are also known as
privately issued securities, carry the risk that their liquidity may become impaired and an underlying fund may be unable to dispose of
the securities at a desirable time or price.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities and such securities may be difficult to value and may have
significant volatility.
Rights
and Warrants Risk.
Warrants may be significantly less valuable or worthless on their expiration date and may also be postponed or terminated early, resulting
in a partial or total loss. Rights are similar to warrants, but normally have a short duration and are distributed directly by the issuer
to its shareholders. Rights and warrants have no voting rights, receive no dividends and have no rights with respect to the assets of
the issuer. Warrants and rights are highly volatile and, therefore, more susceptible to sharp declines in value than the underlying security
might be. The market for rights or warrants may be very limited and it may be difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk. The
market values of convertible securities are affected by market interest rates, the risk of actual issuer default on interest or principal
payments and the value of the underlying common stock into which the convertible security may be converted. Additionally, a convertible
security is subject to the same types of market and issuer risks that apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events,
and, as a result, are subject to an increased risk of loss. Convertible securities may be rated below investment grade and therefore considered
to have more speculative characteristics and greater susceptibility to default or decline in market value than investment grade securities.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay an underlying fund or the Fund
the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment
up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of
the underlying asset could result in an underlying fund or the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset, which may make the underlying fund’s or the Fund’s returns
more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the
underlying fund or the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be
more acute under adverse market conditions, during which the underlying fund or the Fund may be most in need of liquidating its derivative
positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact
the underlying fund’s or the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always
be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the
expected benefits, particularly during adverse market conditions.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer
confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact an underlying
fund’s operations, universe of potential investment options, and return potential.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. Because the investment process of the Fund relies heavily on its
asset allocation process, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on the Fund’s net asset value. Similarly, because the investment processes of certain underlying funds rely heavily on their
security selection processes, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on certain underlying funds’ net asset values. Additionally, legislative, regulatory, or tax developments may adversely affect
management of the Fund and underlying funds and, therefore, their abilities to achieve their investment objectives.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The Fund has adopted the performance of the
Oppenheimer Portfolio Series: Conservative Investor Fund (the predecessor fund) as the result of a reorganization consummated after the
close of business on May 24, 2019 (the “Reorganization”). Prior to the Reorganization, the Fund had not yet commenced operations.
The bar chart shows changes in the performance
of the predecessor fund and the Fund from year to year as of December 31. The performance table compares the predecessor fund’s
and the Fund’s performance to that of a broad measure of market performance and an additional index with characteristics relevant
to the Fund.
The
Fund’s (and the predecessor fund’s) past performance (before and after
taxes) is not necessarily an indication of how the Fund will perform in the future. The returns shown for periods ending
on or prior to May 24, 2019, are those of the Class A, Class C, Class R and Class Y shares of the predecessor fund. Class A, Class C,
Class R and Class Y shares of the predecessor fund were reorganized into Class A, Class C, Class R and Class Y shares, respectively, of
the Fund after the close of business on May 24, 2019. The returns for Class R5 and Class R6 shares shown prior to May 24, 2019, are those
of the Class A shares of the predecessor fund. Class A, Class C, Class R and Class Y shares’ returns of the Fund will be different
from the returns of the predecessor fund as they have different expenses. Performance for Class A shares has been restated to reflect
the Fund’s applicable sales charge.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
6 Invesco
Select Risk: Conservative Investor Fund
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
11.09%
|
|
Worst
Quarter |
March
31, 2020 |
-11.31%
|
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
4/5/2005
|
-20.30%
|
-0.70%
|
1.85%
|
|
Return
After Taxes on Distributions |
|
-21.15
|
-1.98
|
0.78
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
-11.97
|
-0.93
|
1.04
|
|
| ||||
|
Class
C |
4/5/2005
|
-17.24
|
-0.36
|
1.80
|
|
| ||||
|
Class
R |
4/5/2005
|
-15.90
|
0.16
|
2.15
|
|
| ||||
|
Class
Y |
4/5/2005
|
-15.53
|
0.66
|
2.67
|
|
| ||||
|
Class
R5 |
5/24/2019
|
-15.42
|
0.641
|
2.531
|
|
| ||||
|
Class
R6 |
5/24/2019
|
-15.41
|
0.641
|
2.531
|
|
| ||||
|
Custom
Invesco Select Risk: Conservative Investor
Index
(20% MSCI ACWI (Net) (reflects reinvested
dividends
net of withholding taxes, but reflects no
deduction
for fees, expenses or other taxes) and
80%
Bloomberg Global Aggregate USD Hedged
Index
(reflects
no deduction for fees, expenses or
taxes))
|
|
-12.45
|
1.57
|
3.10
|
|
| ||||
|
MSCI
All Country World Index (Net) (reflects
reinvested
dividends net of withholding taxes, but
reflects
no deduction for fees, expenses or other
taxes)
|
|
-18.36
|
5.23
|
7.98
|
|
| ||||
|
Bloomberg
Global Aggregate USD Hedged Index
(reflects
no deduction for fees, expenses or taxes) |
|
-11.22
|
0.36
|
1.70
|
|
| ||||
1
Performance shown prior to the inception
date is that of the predecessor fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although
invested in the same portfolio of securities, Class R5 and Class R6 shares' returns of the Fund will be different from Class A shares'
returns of the predecessor fund as they have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Jeffrey
Bennett, CFA |
Portfolio
Manager |
2019
(predecessor fund 2018) |
|
| ||
|
Alessio
de Longis, CFA |
Portfolio
Manager |
2023
|
|
| ||
|
Scott
Hixon, CFA |
Portfolio
Manager |
2023
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek total return. The Fund’s investment objective may be changed by the Board of Trustees
(the Board) without shareholder approval.
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual
funds advised by Invesco and ETFs and other pooled investment vehicles advised by Invesco Capital or mutual funds, ETFs and other pooled
7 Invesco
Select Risk: Conservative Investor Fund
investment
vehicles advised by unaffiliated advisers (the underlying funds). Invesco and Invesco Capital are affiliates of each other as they are
both indirect wholly-owned subsidiaries of Invesco Ltd.
The
Fund generally categorizes each underlying fund as an equity, fixed-income,
or alternative fund based on its investment profile. The Fund typically allocates its assets among underlying funds, and
within a pre-determined percentage range for its assets in equity funds, as determined by the Adviser in accordance with its
outlook for the economy, the financial markets and the relative market valuations of the underlying funds. Under normal
market conditions, the Adviser selects underlying funds based on its determination that they could provide total return
for the Fund.
The
Fund generally invests between 15% and 30% of its assets in equity
funds. Such funds invest in equity securities of domestic and foreign companies, including small, medium and large market capitalization companies,
and growth and value stocks. Equity securities include common stock, preferred stock, rights and warrants, and securities convertible into
common stock. Foreign equities are securities of issuers outside of the United States, including issuers in emerging or developing
markets, i.e., those that are generally in the early stages of their industrial cycles. Underlying funds investing primarily in real
estate securities, listed infrastructure securities, and master limited partnerships (MLPs) will be deemed to be “equity
funds” for purposes of the Fund’s allocation strategy.
The
Fund generally invests the remainder of its assets in a flexible combination
of fixed-income and alternative funds. Fixed-income funds generally invest in fixed income instruments such as investment-grade debt securities,
below-investment-grade high yield securities (or “junk” bonds), government and government-sponsored securities, corporate
bonds, securitized products, and inflation-protected debt securities. Alternative funds generally offer unique combinations
of traditional equity securities and fixed-income securities or use alternative investment strategies, including primarily through
the use of derivatives, that aim to offer diversification beyond traditional equity and fixed-income securities and may
seek to take long and short positions to manage exposure to certain asset classes. The Fund is not required to invest its assets
in any specified percentages of fixed-income or alternative funds. The Fund does not limit its investment in underlying funds
that invest primarily in foreign securities.
The
Fund’s investment in underlying funds is subject to any limitations imposed
by the Investment Company Act of 1940 or any rules thereunder.
The
Fund may temporarily exceed its percentage range for its assets in equity
funds for short periods and may alter the percentage range when it deems appropriate. The Adviser will monitor the markets and allocate assets
among the underlying funds based on changing market or economic conditions and investment opportunities. The Adviser monitors the underlying fund
selections and periodically rebalances the Fund’s investments to bring them back within their asset allocation target ranges. In
response to changing market or economic conditions, the Adviser may change any or all of the underlying funds managed by
Invesco and/or its affiliates, including using funds that may be created in the future, or change the Fund’s asset allocation
target ranges at any time, in each case without prior approval from or notice to shareholders.
The
Fund may use derivatives to hedge its cash position and manage the
duration of the Fund’s portfolio, including but not limited to futures, total return swaps, and forward contracts. The Fund
may also use other types of derivatives that are consistent with its investment objective and investment strategies. In
addition, the Fund will gain exposure to derivatives through its investments in underlying funds.
With
respect to derivatives, references to the “underlying funds” also include
the Fund and references to the “Fund” also include the underlying funds. The underlying funds can invest in a number of different
types of “derivatives” instruments. A derivative is an instrument whose value depends on (or is derived from) the value of
an underlying security, asset,
interest
rate, index or currency. Derivatives may allow an underlying fund to increase or decrease its exposure to certain markets or risks. Some
underlying funds may use derivatives to seek income or capital gain or to hedge against the risks of other investments. Options, futures,
forward contracts and swaps are some of the types of derivatives the underlying funds can use. The underlying funds may also use other
types of derivatives that are consistent with their investment strategies or for hedging purposes. The underlying funds are not required
to use derivatives in seeking their investment objectives or for hedging and might not do so. There is no target range for indirect investment
in derivatives at the Fund level.
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money market mutual funds in the Invesco family of funds. This may also
include shares of funds that provide exposure to inflation protected debt securities and short-term investment grade debt securities. This
will also generally occur at times when there is an inability to immediately invest funds received from purchases of Fund shares
or from redemptions of other investments or to maintain liquidity.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
the Fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector,
such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters, widespread
disease or other public health issues, war, military conflict, acts of terrorism, economic crisis or other events may have a significant
impact on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances
may also impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in
the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific
investments held by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO) member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine
(and the potential for further sanctions in response to Russia’s continued military activity) may escalate. These and other corresponding
events, have had, and could continue to have, severe negative effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall
8 Invesco
Select Risk: Conservative Investor Fund
uncertainty.
The negative impacts may be particularly acute in certain sectors including, but not limited to, energy and financials. Russia may take
additional countermeasures or retaliatory actions (including cyberattacks), which could exacerbate negative consequences on global financial
markets. The duration of the conflict and corresponding sanctions and related events cannot be predicted. The foregoing may result in
a negative impact on Fund performance and the value of an investment in the Fund, even beyond any direct investment exposure the Fund
may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Fund
of Funds Risk.
The Fund’s performance depends on that of the underlying funds in which it invests. Accordingly, the risks associated with an investment
in the Fund include the risks associated with investments in the underlying funds. The Fund will indirectly pay a proportional share of
the fees and expenses of the underlying funds in which it invests. There is a risk that the Fund will vary from its target weightings
(if any) in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will
achieve their investment objectives, and their performance may be lower than their represented asset classes. Underlying Funds that are
not affiliated with the Fund may change their portfolio managers, investment objectives, investment strategies, policies or practices
without the approval of the Fund, which may cause the Fund to withdraw its investments therein at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) the market price of an exchange-traded fund’s shares may trade above or below
its net asset value; (2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading
an exchange-traded fund’s shares may be halted if the listing exchange’s officials deem such action appropriate; (4) a passively-managed
exchange-traded fund may not accurately track the performance of the reference asset; and (5) a passively-managed exchange-traded fund
would not necessarily sell a security because the issuer of the security was in financial trouble unless the security is removed from
the index that the exchange-traded fund seeks to track. Investment in exchange-traded funds may involve duplication of management fees
and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded
funds in which it invests. Further, certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged. Investing
in leveraged exchange-traded funds may result in economic leverage, which does not result in the possibility of the Fund or an underlying
fund incurring obligations beyond its investments, but nonetheless permits the Fund or an underlying fund to gain exposure that is greater
than would be the case in an unlevered instrument, which can result in greater volatility.
Allocation
Risk. The Fund’s investment performance depends, in part,
on how its assets are allocated among the underlying funds or asset classes. The Adviser’s evaluations and assumptions regarding
the asset
classes
or the underlying funds in which the Fund invests may be incorrect, causing the Fund to be invested (or not invested) in one or more asset
classes or underlying funds at an inopportune time. The Adviser’s allocation of the Fund’s assets among asset classes and
underlying funds may therefore not produce the desired results and could cause the Fund to perform poorly or underperform the Fund’s
benchmark and other available funds.
◾
Affiliated
Portfolio Risk. In managing the Fund, the Adviser will have authority
to select and substitute underlying funds. The Adviser may be subject to potential conflicts of interest in selecting underlying funds
because the fees paid to the Adviser or its affiliates by some underlying funds for advisory services are higher than the fees paid by
other underlying funds. In addition, the Fund's portfolio managers may also serve as portfolio managers of the underlying funds.
However, the Adviser monitors the investment process to seek to
identify, address and resolve any potential issues and has adopted certain compliance procedures which are designed to address these types
of conflicts.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. If an issuer seeks to restructure the terms of its borrowings
or an underlying fund is required to seek recovery upon a default in the payment of interest or the repayment of principal, an underlying
fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s perception of such strength or
in the credit rating of the issuer or the security may affect the value of debt securities. An underlying fund’s adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
Variable
or Floating Rate Instruments.
Variable or floating rate instruments are securities that provide for a periodic adjustment in the interest rate paid on the obligation.
The interest rates for securities with variable interest rates are readjusted on set dates (such as the last day of the month or calendar
quarter) and the interest rates for securities with floating rates are reset whenever a specified interest rate change occurs. Variable
or floating interest rates generally reduce changes in the market price of securities from their original purchase price because, upon
readjustment, such rates approximate market rates. Accordingly, as market interest rates decrease or increase, the potential for capital
appreciation or depreciation is less for variable or floating rate securities than for fixed rate obligations.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Municipal
Securities Risk.
The risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the security.
Municipal obligations may be more susceptible to downgrades or
9 Invesco
Select Risk: Conservative Investor Fund
defaults
during recessions or similar periods of economic stress. Municipal securities structured as revenue bonds are generally not backed by
the taxing power of the issuing municipality but rather the revenue from the particular project or entity for which the bonds were issued.
If the Internal Revenue Service determines that an issuer of a municipal security has not complied with applicable tax requirements, interest
from the security could be treated as taxable, which could result in a decline in the security’s value. In addition, there could
be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities
or otherwise adversely affect the current federal or state tax status of municipal securities.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central
bank policies could
also result in higher than normal redemptions by shareholders, which could potentially increase an underlying fund’s portfolio turnover
rate and transaction costs and potentially lower an underlying fund’s performance returns.
Defaulted
Securities Risk.
Defaulted securities pose a greater risk that principal will not be repaid than non-defaulted securities. An underlying fund will generally
not receive interest payments on defaulted securities and may incur costs to protect its investment. Defaulted securities and any securities
received in an exchange for such securities may be subject to restrictions on resale. Investments in defaulted securities and obligations
of distressed issuers are considered speculative and the prices of these securities may be more volatile than non-defaulted securities.
High
Yield Debt Securities (Junk Bond) Risk.
An underlying fund’s investments in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated
securities will subject an underlying fund to substantial risk of loss. These securities are considered to be speculative with respect
to the issuer’s ability to pay interest and principal when due and are more susceptible to default or decline in market value due
to adverse economic, regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield
debt securities tend to be very volatile. These securities are less liquid than investment grade debt securities and may be difficult
to sell at a desirable time or price, particularly in times of negative sentiment toward high yield securities.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, differ from
conventional debt securities because principal is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed
securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received earlier or later than
expected due to changes in prepayment rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a
result, an underlying fund may reinvest these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage-
and asset-backed securities also are subject to extension risk. An unexpected rise in interest rates could reduce the rate of prepayments
and extend the life of the mortgage- and asset-backed securities, causing the price of the mortgage- and asset-backed securities and an
underlying fund’s share price to fall and would make the mortgage- and asset-backed securities more sensitive to interest rate changes.
An unexpectedly high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities
and will result in losses to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid
than other types of securities and
an underlying
fund may be unable to sell these securities at the time or price it desires. During periods of market stress or high redemptions, an underlying
fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid privately-issued mortgage-backed
securities and asset-backed securities can become illiquid during periods of market stress. An underlying fund may invest in mortgage
pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories or with lower capacity to make
timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include subprime mortgages. Privately
issued mortgage-related securities are not subject to the same underwriting requirements for the underlying mortgages that are applicable
to those mortgage-related securities that have government or government-sponsored entity guarantees. As a result, the mortgage loans underlying
privately issued mortgage-related securities may, and frequently do, have less favorable collateral, credit risk, liquidity risk or other
underwriting characteristics than government or government-sponsored mortgage-related securities and have wider variances in a number
of terms including interest rate, term, size, purpose and borrower characteristics.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market
anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if an underlying fund
invests in CLOs that hold loans of uncreditworthy borrowers or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
Senior
Loans and Other Loans Risk. There are a number of risks associated
with an investment in Senior Loans including credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair an underlying fund’s ability to sell Senior
Loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments.
Extended trade settlement periods may result in cash not being immediately available to an underlying fund. As a result, an underlying
fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding
Senior Loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans can be affected
by and is sensitive to, changes in government regulation and to economic downturns in the United States and abroad. These risks could
cause an underlying fund to lose income or principal on a particular investment, which in turn could affect an underlying fund’s
returns.
In
addition to the risks typically associated with debt securities senior loans
are also subject to the risk that a court could subordinate a senior loan, which typically holds a senior position in the capital structure
of a borrower, to presently existing or future indebtedness or take other action detrimental to the holders of senior loans. Loans usually
have mandatory and optional prepayment provisions. If a borrower prepays a loan, an underlying fund will have to reinvest the proceeds
in other loans or financial assets that may pay lower rates of return.
Loans
are subject to the risk that the value of the collateral, if any, securing
a loan may decline, be insufficient to meet the obligations of the borrower, or be difficult to liquidate. In the event of a default,
an underlying fund may have difficulty collecting on any collateral and would not have the ability to collect on any collateral for an
uncollateralized loan. In addition, the
10 Invesco
Select Risk: Conservative Investor Fund
lenders’
security interest or their enforcement of their security under the loan agreement may be found by a court to be invalid or the collateral
may be used to pay other outstanding obligations of the borrower. An underlying fund’s access to collateral, if any, may be limited
by bankruptcy, other insolvency laws, or by the type of loan an underlying fund has purchased. As a result, a collateralized loan may
not be fully collateralized and can decline significantly in value.
Loan
investments are often issued in connection with highly leveraged transactions.
Such transactions include leveraged buyout loans, leveraged recapitalization loans, and other types of acquisition financing. These obligations
are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy.
Highly leveraged loans also may be less liquid than other loans. If an underlying fund voluntarily or involuntarily sold those types of
loans, it might not receive the full value it expected.
Due
to restrictions on transfers in loan agreements and the nature of the
private syndication of loans including, for example, the lack of publicly-available information, some loans are not as easily purchased
or sold as publicly-traded securities. Some loans are illiquid, which may make it difficult for an underlying fund to value them or dispose
of them at an acceptable price when it wants to. Additionally, valuation of Senior Loans may require greater research due to limited public
information available and elements of judgment may play a greater role in valuation since there may be a lack of objective data available.
The market price of investments in floating rate loans is expected to be less affected by changes in interest rates than fixed-rate investments
because floating rate loans pay a floating rate of interest that will fluctuate as market interest rates do and therefore should more
closely track market movements in interest rates.
Direct
investments in loans and, to a lesser degree, investments in participation
interests in or assignments of loans may be limited. A limited availability of loans could reduce the amount of attractive investments
for an underlying fund. If market demand for loans increases, the interest paid by loans that an underlying fund holds may decrease.
Compared
to securities and to certain other types of financial assets, purchases
and sales of loans take relatively longer to settle. This extended settlement process can (i) increase the counterparty credit risk borne
by an underlying fund; (ii) leave an underlying fund unable to timely vote, or otherwise act with respect to, loans it has agreed to purchase;
(iii) delay an underlying fund from realizing the proceeds of a sale of a loan; (iv) inhibit an underlying fund’s ability to re-sell
a loan that it has agreed to purchase if conditions change (leaving an underlying fund more exposed to price fluctuations); (v) prevent
an underlying fund from timely collecting principal and interest payments; and (vi) expose an underlying fund to adverse tax or regulatory
consequences. To the extent the extended loan settlement process gives rise to short-term liquidity needs, such as the need to satisfy
redemption requests, an underlying fund may hold cash, sell investments or temporarily borrow from banks or other lenders. If an underlying
fund undertakes such measures, an underlying fund’s ability to pay redemption proceeds in a timely manner, as well as an underlying
fund’s performance, may be adversely affected.
If
an underlying fund invests in a loan via a participation, an underlying fund
will be exposed to the ongoing counterparty risk of the entity providing exposure to the loan (and, in certain circumstances, such entity’s
credit risk) in addition to the exposure an underlying fund has to the creditworthiness of the borrower. The terms of the participation
may not entitle an underlying fund to all rights of a direct lender under the loan (for example, with respect to consent, voting or enforcement
rights). Therefore, an underlying fund’s rights under a participation interest for a particular loan may be more limited than the
rights of the original lender or an investor who acquires an assignment of that loan. Where an underlying fund invests in a loan via a
participation, an underlying fund generally will have no right of direct recourse against the borrower or ability to otherwise directly
enforce the terms of the loan agreement.
In
certain circumstances, loans may not be deemed to be securities, and
in the event of fraud or misrepresentation by a borrower or an arranger, lenders will not have the protection of the anti-fraud provisions
of the federal securities laws, as would be the case for bonds or stocks. Instead, in such cases, lenders generally rely on the contractual
provisions in the loan agreement itself, and common-law fraud protections under applicable state law.
Inflation-Indexed
Securities Risk.
Inflation-indexed securities typically provide principal and interest payments that are adjusted over time to reflect a rise (inflation)
or a drop (deflation) in the general price level for goods and services. Because of the inflation-adjustment feature, these securities
typically have lower yields than traditional fixed-rate securities with similar maturities. The values of inflation-indexed securities
generally fluctuate in response to changes in real interest rates. Real interest rates are tied to the relationship between nominal interest
rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading
to a decrease in value of inflation-indexed securities, which could cause losses for the Fund or an underlying fund. Conversely, if inflation
rises at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of inflation-indexed
securities. An underlying fund's income from its investments in inflation-indexed securities is likely to fluctuate considerably more
than the income distributions of its investments in more traditional fixed income securities.
TBA
Transactions Risk.
TBA transactions involve the risk that the securities received may be less favorable than what was anticipated by an underlying fund when
entering into the TBA transaction. TBA transactions also involve the risk that the counterparty will fail to deliver the securities, exposing
an underlying fund to further losses. Whether or not an underlying fund takes delivery of the securities at the termination date of a
TBA transaction, an underlying fund will nonetheless be exposed to changes in the value of the underlying investments during the term
of the agreement. If an underlying fund sells short TBA mortgages that it does not own and the mortgages increase in value, an underlying
fund may be required to pay a higher price than anticipated to purchase the deliverable mortgages to settle the short sale and thereby
incur a loss. A short position in TBA mortgages poses more risk than holding the same TBA mortgages long. It is possible that the market
value of the mortgage securities an underlying fund holds in long positions will decline at the same time that the market value of the
mortgage securities an underlying fund has sold short increases, thereby magnifying any losses. The more an underlying fund pays to purchase
the mortgage securities sold short, the more it will lose on the transaction, which adversely affects its share price. The loss on a long
position is limited to what an underlying fund originally paid for the TBA mortgage, together with any transaction costs. In short transactions,
there is no limit on how much the price of a security can increase, thus an underlying fund’s exposure is theoretically unlimited.
An underlying fund normally closes a short sale of TBA mortgages that it does not own by purchasing mortgage securities on the open market
and delivering them to the broker. An underlying fund may not always be able to complete or “close out” the short position
by purchasing mortgage securities at a particular time or at an acceptable price. An underlying fund incurs a loss if an underlying fund
is required to buy the deliverable mortgage securities at a time when they have appreciated in value from the date of the short sale.
An underlying fund will incur increased transaction costs associated with selling TBA mortgages short. In addition, taking short positions
results in a form of leverage. As a result, changes in the value of an underlying fund’s investments will have a larger effect on
its share price than if it did not engage in these transactions.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Real estate companies, including REITs or similar structures, tend to be small- and mid-cap
companies and their shares may be more
11 Invesco
Select Risk: Conservative Investor Fund
volatile
and less liquid than larger companies. The value of investments in real estate related companies may be affected by the quality of management,
the ability to repay loans, the utilization of leverage and financial covenants related thereto, whether the company carries adequate
insurance and environmental factors. If a real estate related company defaults on certain types of debt obligations held by the Underlying
Fund, the Underlying Fund may acquire real estate directly, which involves additional risks such as environmental liabilities; difficulty
in valuing and selling the real estate; and economic or regulatory changes.
Zero
Coupon or Pay-In-Kind Securities Risk.
Zero coupon and pay-in-kind securities may be subject to greater fluctuation in value and less liquidity in the event of adverse market
conditions than comparably rated securities paying cash interest at regular interest payment periods. Prices on non-cash-paying instruments
may be more sensitive to changes in the issuer’s financial condition, fluctuation in interest rates and market demand/supply imbalances
than cash-paying securities with similar credit ratings, and thus may be more speculative. Investors may purchase zero coupon and pay-in-kind
securities at a price below the amount payable at maturity. Because such securities do not entitle the holder to any periodic payments
of interest prior to maturity, this prevents any reinvestment of interest payments at prevailing interest rates if prevailing interest
rates rise. The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit risk associated
with such instruments and that such investments may represent a higher credit risk than coupon loans. Pay-in-kind securities may have
a potential variability in valuations because their continuing accruals require continuing judgments about the collectability of the deferred
payments and the value of any associated collateral. Special tax considerations are associated with investing in certain lower-grade securities,
such as zero coupon or pay-in-kind securities.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. In the years following the 2008 financial crisis,
the integrity of LIBOR was increasingly questioned because several banks contributing to its calculation were accused of rate manipulation
and because of a general contraction in the unsecured interbank lending market. As a result, regulators and financial industry working
groups in several jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to
replace LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the
Secured Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other
interbank offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which an underlying fund invests that utilize ARRs will
be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
Additionally, although regulators have generally prohibited banking institutions from entering into new contracts that reference those
USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and
implemented
into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD
LIBOR instruments held by an underlying fund could result in losses to an underlying fund.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is
privately placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during
periods of market stress. If a significant amount of an underlying fund’s securities become illiquid, an underlying fund may not
be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Borrowing
Risk.
Borrowing money to buy securities exposes an underlying fund to
leverage because an
underlying fund seeks to achieve a return on a capital base larger than the assets that shareholders have contributed to an underlying
fund. Borrowing will cause an underlying fund’s share price
to be more volatile because leverage will exaggerate the effect
of any
increase or decrease in the value of an underlying fund’s portfolio securities. An underlying fund
may also be required to liquidate positions when it may not be
advantageous to do so in order to repay borrowed money when due. In addition, an underlying fund will
incur interest expenses and other fees on borrowed money. There
can be no assurance that an underlying fund’s borrowing strategy will enhance and not reduce the underlying fund’s returns.
Foreign
Securities Risk.
The value of an underlying fund's foreign investments may be adversely affected by political and social instability in the home countries
of the issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which an underlying fund could lose its entire investments in a certain market) and the possible adoption of foreign
governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S.
companies, including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud
or corruption. Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies
making it more difficult for an underlying fund’s adviser to evaluate those companies. The laws of certain countries may put limits
on an underlying fund’s ability to recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security,
or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due
to the size of the market or other factors. Changes in political and economic factors in one country or region could adversely affect
conditions in another country or region. Investments in foreign securities may also expose an underlying fund to time-zone arbitrage risk.
At times, an underlying fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse
events that occur in that country or region. Unless an underlying fund has hedged its foreign currency exposure, foreign securities risk
also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign
currency (or other instruments through which an underlying fund has exposure to foreign currencies) to decline in value. Currency exchange
rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. For instance,
currency forward contracts, if used, could reduce performance if there are unanticipated changes in currency exchange rates.
Foreign
Government Debt Risk. Investments
in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those
relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment
of the debt may be unable or unwilling to repay
12 Invesco
Select Risk: Conservative Investor Fund
principal
or interest when due in accordance with the terms of such debt, and an underlying fund may have limited recourse in the event of a default
against the defaulting government. A foreign government debtor’s willingness or ability to repay principal and pay interest in a
timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign currency reserves, the availability
of sufficient foreign exchange, the relative size of the debt burden, the foreign government debtor’s policy toward its principal
international lenders and local political constraints. Certain issuers of foreign government debt may be dependent on disbursements from
foreign governments, multinational agencies and other entities to reduce principal and interest arrearages on their debt. Without the
approval of debt holders, some governmental debtors have in the past been able to reschedule or restructure their debt payments or declare
moratoria on payments.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede an underlying fund’s ability to evaluate such companies. In addition, certain emerging market countries
may impose material limitations on Public Company Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities,
which can hinder the PCAOB’s ability to engage in independent oversight or inspection of accounting firms located in or operating
in certain emerging markets. There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the
federal,
regional and local levels in emerging market countries may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries have been engaged in programs to sell all or part of their interests
in government-owned or controlled enterprises. However, in certain emerging market countries, the ability of foreign entities to participate
in privatization programs may be limited by local law. There can be no assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Geographic
Focus Risk. An underlying fund may from time to time have a substantial
amount of its assets invested in securities of issuers located in a single country or a limited number of countries. If an underlying
fund focuses its investments in this manner, adverse economic, political or social conditions in those countries may have a significant
negative impact on an underlying fund’s investment performance. This risk is heightened if an underlying fund focuses its investments
in emerging market countries or developed countries prone to periods of instability.
Unrated
Securities Risk. Because an underlying fund purchases securities
that are not rated by any nationally recognized statistical rating organization, the investment adviser may internally assign ratings
to those securities, after assessing their credit quality and other factors, in categories similar to those of nationally recognized statistical
rating organizations. There can be no assurance, nor is it intended, that the investment adviser’s credit analysis process is consistent
or comparable with the credit analysis process used by a nationally recognized statistical rating organization. Unrated securities are
considered “investment-grade” or “below-investment-grade” if judged by the investment adviser to be comparable
to rated investment- grade or below-investment-grade securities. The investment adviser’s rating does not constitute a guarantee
of the credit quality. In addition, some unrated securities may not have an active trading market or may trade less actively than rated
securities, which means that an underlying fund might have difficulty selling them promptly at an acceptable price.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries. Information about the Fund’s investment in a market sector or group of industries is available in its annual
and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the SEC.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions are subject to market risk as the value or yield of a security at delivery may be more or
less than the purchase price or the yield generally available on securities when delivery occurs. In addition, an underlying fund is subject
to counterparty risk because it relies on the buyer or seller, as the case may be, to consummate the transaction, and failure by the counterparty
to complete the transaction may result in an underlying fund missing the opportunity of obtaining a price or yield considered to be advantageous.
These transactions have a leveraging effect on an underlying fund because an underlying fund commits to purchase securities that it does
not have to pay for until a later date. These investments therefore increase an underlying fund’s overall investment exposure and,
as a result, its volatility. Typically, no income accrues on securities an underlying fund has committed to purchase prior to the time
delivery of the securities is made.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in
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Select Risk: Conservative Investor Fund
claims
for dividends and in claims for assets of the issuer in a liquidation or bankruptcy. Common stocks may be exchange-traded or over-the-counter
securities. Over-the-counter securities may be less liquid than exchange-traded securities.
The
value of an underlying fund’s portfolio may be affected by changes in
the stock markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets
may experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-sized companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable price when it wants to sell them.
In addition, investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities
(this is sometimes referred to as “price arbitrage”), which could interfere with the efficient management of an underlying
fund. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends
for some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in
a small- or mid-cap company, if any gain is realized at all. The relative sizes of companies may change over time as the securities market
changes, and an underlying fund is not required to sell the securities of companies whose market capitalizations have grown or decreased
due to market fluctuations.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the issuer in
a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital
structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred
securities will usually react more strongly than bonds and other debt securities to actual or
perceived
changes in the company’s financial condition or prospects. Preferred securities may be less liquid than many other securities, such
as common stocks, and generally offer no voting rights with respect to the issuer.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment strategies will yield uncorrelated performance under all market conditions. In addition, the particular mix of
alternative investments in an underlying fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to
the risk that its alternative investments may undergo a correlation shift, resulting in returns that are correlated with the broader market
and/or with an underlying fund’s other alternative investments.
Rule
144A Securities and Other Exempt Securities Risk. An underlying
fund may invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption
from registration under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically
may be resold only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers,
or in limited quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration.
Although such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company
Act of 1940, as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities
at a particular time, an underlying fund may have difficulty selling such securities at a desirable time or price. As a result, an underlying
fund’s investment in such securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities
may require their qualified institutional buyers (such as an underlying fund) to keep certain offering information confidential, which
could adversely affect the ability of an underlying fund to sell such securities.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities. Also, restricted securities may be difficult to value
because market quotations may not be readily available, and the securities
14 Invesco
Select Risk: Conservative Investor Fund
may
have significant volatility. In addition, an underlying fund may get only limited information about the issuer of a restricted security
and therefore may be less able to predict a loss.
Rights
and Warrants Risk.
Rights and warrants may be purchased directly or acquired as part of other securities. Warrants are options to purchase equity securities
at a specific price during a specific period of time. The price of a warrant does not necessarily move parallel to, and is generally more
volatile than, the price of the underlying security. Warrants may be significantly less valuable or worthless on their expiration date
and may also be postponed or terminated early, resulting in a partial or total loss. Rights are similar to warrants, but normally have
a short duration and are distributed directly by the issuer to its shareholders. Rights and warrants have no voting rights, receive no
dividends and have no rights with respect to the assets of the issuer. Warrants and rights are highly volatile and, therefore, more susceptible
to sharp declines in value than the underlying security might be. The market for rights or warrants may be very limited and it may be
difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk.
The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the
value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be
able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or
the market’s perception of the issuer’s creditworthiness. Convertible securities can be converted into or exchanged for a
set amount of common stock of an issuer within a particular period of time at a specified price or according to a price formula. Convertible
debt securities pay interest and convertible preferred stocks pay dividends until they mature or are converted, exchanged or redeemed.
Some convertible debt securities may be considered “equity equivalents” because of the feature that makes them convertible
into common stock. Since a convertible security derives a portion of its value from the common stock into which it may be converted, a
convertible security is also subject to the same types of market and issuer risks that
apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events.
These convertible securities are subject to an increased risk of loss and are generally subordinate in rank to other debt obligations
of the issuer. Convertible securities may be rated below investment grade and therefore considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between an underlying fund and a counterparty. When an underlying fund is owed money on an OTC derivative, an underlying fund
is dependent on the counterparty to pay or, in some cases, deliver the underlying asset, unless an underlying fund can otherwise sell
its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers
and their creditworthiness (and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally.
In addition, in the event that a counterparty becomes bankrupt or insolvent, an underlying fund’s ability to recover the collateral
that an underlying fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange,
an underlying fund generally is dependent upon the
solvency
of the relevant exchange clearing house (which acts as a guarantor for each contractual obligation under such derivatives) for payment
on derivative instruments for which an underlying fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in an underlying fund sustaining
a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have
the potential for unlimited loss, regardless
of the size of an underlying fund’s initial investment. Leverage may therefore make
an underlying fund’s returns more volatile
and increase the risk of loss. In certain market conditions, losses
on derivative instruments can grow larger while the value of an underlying fund’s other assets fall, resulting in an underlying
fund’s derivative positions becoming a larger percentage of an underlying fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional investments and an underlying
fund may be unable to sell or exit its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which an underlying fund may be most in need of liquidating its derivative positions. To the extent that an underlying
fund is unable to exit a derivative position because of market illiquidity, an underlying fund may not be able to prevent further losses
of value in its derivatives holdings and the liquidity of an underlying fund and its ability to meet redemption requests may be impaired
to the extent that a substantial portion of an underlying fund’s otherwise liquid assets must be used as margin. Another consequence
of illiquidity is that an underlying fund may be required to hold a derivative instrument to maturity and take or make delivery of the
underlying asset that an underlying fund’s adviser would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency
contracts are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency
movements will not be accurately predicted or do not correspond accurately to changes in the value of an underlying fund's holdings, which
could result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated
changes in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of
the currency increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Forward
Contracts Risk. The projection of short-term currency market movements
is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. The precise matching of the
amounts under forward contracts and the value of the securities involved generally will not be possible because the future value of securities
denominated in foreign currencies will change as a consequence of market movements between the date the forward contract is entered into
and the date it is sold. Investments in forward contracts involve the risk that anticipated currency movements will not be accurately
predicted, causing an underlying fund to sustain losses on these contracts and to pay additional transaction costs.
15 Invesco
Select Risk: Conservative Investor Fund
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. An underlying fund may be disadvantaged if it is prohibited from executing a trade outside the daily
permissible price movement.
◾
Options
Risk. If an underlying fund sells a put option, there is a risk
that an underlying fund may be required to buy the underlying investment at a disadvantageous price. If an underlying fund sells a call
option, there is a risk that an underlying fund may be required to sell the underlying investment at a disadvantageous price. If an underlying
fund sells a call option on an investment that an underlying fund owns (a “covered call”) and the investment has increased
in value when the option is exercised, an underlying fund will be required to sell the investment at the call price and will not be able
to realize any of the investment’s value above the call price. Options may involve economic leverage, which could result in greater
price volatility than other investments.
◾
“Structured”
Notes Risk. Structured notes are subject to interest rate risk.
They are also subject to credit risk with respect both to the issuer and, if applicable, to the underlying security or obligor. If the
underlying investment or index does not perform as anticipated, the structured note might pay less interest than the stated coupon payment
or repay less principal upon maturity. The price of structured notes may be very volatile and they may have a limited trading market,
making it difficult to value them or sell them at an acceptable price. In some cases, an underlying fund may enter into agreements with
an issuer of structured notes to purchase a minimum amount of those notes over time.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for an underlying fund. Swap agreements are privately negotiated in the over-the-counter
market and may be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following
execution of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and an underlying
fund faces the central clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing
house.
◾
Volatility
Swaps Risks. Volatility swaps are subject to credit risks (if
the counterparty fails to meet its obligations), and the risk that the investment adviser is incorrect in its forecast of volatility for
the underlying security, currency, index or other financial instrument that is the subject of the swap. If the investment adviser is incorrect
in its forecast, an underlying fund would likely be required to make a payment to the counterparty under the swap. Volatility swaps can
have the potential for unlimited losses.
◾
Total
Return Swaps Risk. In a total return swap transaction, one party
agrees to pay the other party an amount equal to the total return on a defined underlying asset or a non-asset reference during a specified
period of time. The underlying asset might be a security or asset or basket of securities or assets or a non-asset reference such as a
securities or other type of index. In return, the other party would make periodic payments based on a fixed or variable interest rate
or on the total return from a different underlying asset or non-asset reference. Total return swaps could result in losses if the
underlying asset or reference does not perform as anticipated. Total return
swaps
can have the potential for unlimited losses. They are also subject to counterparty risk. If the counterparty fails to meet its obligations,
an underlying fund may lose money.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of an underlying fund’s taxable income or gains, and may limit or prevent an underlying fund from using
certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to
implement or require an underlying fund to change its investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that an underlying fund uses derivatives for hedging or to gain or limit exposure to a particular market or
market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being
hedged or the relevant market or market segment, in which case an underlying fund may not realize the intended benefits. There is also
the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all.
An underlying fund’s use of derivatives may be limited by the requirements for taxation of an underlying fund as a regulated investment
company.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan or other
legislation aimed at addressing financial or economic conditions, the threat of a federal government shutdown, and threats not to increase
or suspend the federal government’s debt limit, may affect investor and consumer confidence, increase volatility in the financial
markets, perhaps suddenly and to a significant degree, result in higher interest rates, and even raise concerns about the U.S. government’s
credit rating and ability to service its debt. Such changes and events may adversely impact an underlying fund’s operations, universe
of potential investment options, and return potential.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. There can be no guarantee that the Fund’s Adviser’s
and certain underlying funds’ advisers' investment techniques or investment decisions will produce the desired results. Because
the investment process of the Fund relies heavily on its asset allocation process, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on the Fund’s net asset value. Similarly, because the investment
processes of certain underlying funds rely heavily on their security selection processes, market movements that are
16 Invesco
Select Risk: Conservative Investor Fund
counter
to the portfolio managers’ expectations may have a significant adverse effect on certain underlying funds’ net asset values.
Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and underlying funds and, therefore,
their abilities to achieve their investment objectives.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The
Adviser, as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with
certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to
provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Regulation
under the Commodity Exchange Act
The
Adviser is registered as a “commodity pool operator” (CPO) under the Commodity Exchange Act and the rules of the CFTC and
is subject to CFTC regulation with respect to the Fund. The CFTC has adopted rules regarding the disclosure, reporting and recordkeeping
requirements that apply with respect to the Fund as a result of the Adviser’s registration as a CPO. Generally, these rules allow
for substituted compliance with CFTC disclosure and shareholder reporting requirements, based on the Adviser’s compliance with comparable
SEC requirements. This means that for most of the CFTC’s disclosure and shareholder reporting requirements applicable to the Adviser
as the Fund’s CPO, the Adviser’s compliance with SEC disclosure and shareholder reporting requirements will be deemed to fulfill
the Adviser’s CFTC compliance obligations. However, as a result of CFTC regulation with respect to the Fund, the Fund may incur
additional compliance and other expenses. The Adviser is also registered as a “commodity trading advisor” (CTA) but, with
respect to the Fund, relies on an exemption from CTA regulation available for a CTA that also serves as the Fund’s CPO.
Adviser
Compensation
The
Adviser does not receive a management fee from the Fund.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of
the
Fund is available in the Fund’s most recent annual or semi-annual report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for determining the asset class allocation, underlying fund selections and
target weightings for the Fund:
◾
Jeffrey
Bennett, CFA, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Mr. Bennett managed the predecessor fund since 2018 and was associated
with OppenheimerFunds, a global asset management firm, since 2016.
◾
Alessio
de Longis, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 2019. Prior to joining Invesco, Mr. de Longis was associated with OppenheimerFunds, a global asset management firm, since 2004.
◾
Scott
Hixon, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 1994.
The
portfolio managers are assisted by investment professionals from the
Invesco Investment Solutions Team. Members of the team may change from time to time.
The
underlying funds are managed by portfolio managers.
More
information on the Fund’s portfolio managers and the portfolio managers
managing the affiliated underlying funds may be found at www.invesco.com/us. The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category VI Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the
17 Invesco
Select Risk: Conservative Investor Fund
Fund may experience
a current year loss, it may nonetheless distribute prior year capital gains.
18 Invesco
Select Risk: Conservative Investor Fund
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the class
of shares, and the eleven-month period ended December 31, 2019. The financial highlights table is intended to help you understand the
Fund’s and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund
share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund
(assuming
reinvestment of all dividends and distributions). The information for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers
LLP, an independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in
the Fund’s annual report, which is available upon request. The information for fiscal years ended prior to May 24, 2019 has been
audited by the predecessor fund’s auditor. Effective September 30, 2019, the Fund changed its fiscal year end from January 31 to
December 31.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(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(c)
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed(d)
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(e)
|
|
Class
A | ||||||||||||||
|
Year
ended 12/31/22 |
$9.88
|
$0.20
|
$(1.74)
|
$(1.54)
|
$(0.16)
|
$(0.07)
|
$(0.23)
|
$8.11
|
(15.62)%(f)
|
$287,368
|
0.41%(f)
|
0.41%(f)
|
2.32%(f)
|
21%
|
|
Year
ended 12/31/21 |
10.03
|
0.17
|
0.14
|
0.31
|
(0.35)
|
(0.11)
|
(0.46)
|
9.88
|
3.11(f)
|
357,004
|
0.37(f)
|
0.42(f)
|
1.68(f)
|
27
|
|
Year
ended 12/31/20 |
9.46
|
0.18
|
0.60
|
0.78
|
(0.21)
|
—
|
(0.21)
|
10.03
|
8.29(f)
|
451,258
|
0.33(f)
|
0.43(f)
|
1.85(f)
|
80
|
|
Eleven
months ended 12/31/19 |
9.31
|
0.21
|
0.56
|
0.77
|
(0.33)
|
(0.29)
|
(0.62)
|
9.46
|
8.26
|
415,244
|
0.43(g)
|
0.53(g)
|
2.39(g)
|
6
|
|
Year
ended 01/31/19 |
9.67
|
0.22
|
(0.37)
|
(0.15)
|
(0.21)
|
—
|
(0.21)
|
9.31
|
(1.49)
|
396,318
|
0.42
|
0.52
|
2.35
|
45
|
|
Year
ended 01/31/18 |
9.02
|
0.17
|
0.69
|
0.86
|
(0.21)
|
—
|
(0.21)
|
9.67
|
9.53
|
445,732
|
0.42
|
0.53
|
1.82
|
7
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
9.77
|
0.14
|
(1.73)
|
(1.59)
|
(0.09)
|
(0.07)
|
(0.16)
|
8.02
|
(16.34)
|
38,359
|
1.17
|
1.17
|
1.56
|
21
|
|
Year
ended 12/31/21 |
9.92
|
0.09
|
0.14
|
0.23
|
(0.27)
|
(0.11)
|
(0.38)
|
9.77
|
2.31
|
59,281
|
1.13
|
1.18
|
0.92
|
27
|
|
Year
ended 12/31/20 |
9.35
|
0.10
|
0.61
|
0.71
|
(0.14)
|
—
|
(0.14)
|
9.92
|
7.55
|
68,581
|
1.09
|
1.19
|
1.09
|
80
|
|
Eleven
months ended 12/31/19 |
9.20
|
0.14
|
0.55
|
0.69
|
(0.25)
|
(0.29)
|
(0.54)
|
9.35
|
7.48
|
88,939
|
1.19(g)
|
1.29(g)
|
1.63(g)
|
6
|
|
Year
ended 01/31/19 |
9.56
|
0.15
|
(0.38)
|
(0.23)
|
(0.13)
|
—
|
(0.13)
|
9.20
|
(2.30)
|
125,385
|
1.17
|
1.27
|
1.60
|
45
|
|
Year
ended 01/31/18 |
8.92
|
0.10
|
0.67
|
0.77
|
(0.13)
|
—
|
(0.13)
|
9.56
|
8.69
|
139,290
|
1.17
|
1.28
|
1.06
|
7
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 12/31/22 |
9.86
|
0.17
|
(1.74)
|
(1.57)
|
(0.13)
|
(0.07)
|
(0.20)
|
8.09
|
(15.90)
|
40,864
|
0.67
|
0.67
|
2.06
|
21
|
|
Year
ended 12/31/21 |
10.01
|
0.14
|
0.14
|
0.28
|
(0.32)
|
(0.11)
|
(0.43)
|
9.86
|
2.84
|
49,057
|
0.63
|
0.68
|
1.42
|
27
|
|
Year
ended 12/31/20 |
9.44
|
0.15
|
0.61
|
0.76
|
(0.19)
|
—
|
(0.19)
|
10.01
|
8.03
|
51,481
|
0.59
|
0.69
|
1.59
|
80
|
|
Eleven
months ended 12/31/19 |
9.29
|
0.19
|
0.55
|
0.74
|
(0.30)
|
(0.29)
|
(0.59)
|
9.44
|
7.99
|
49,017
|
0.68(g)
|
0.78(g)
|
2.13(g)
|
6
|
|
Year
ended 01/31/19 |
9.65
|
0.20
|
(0.37)
|
(0.17)
|
(0.19)
|
—
|
(0.19)
|
9.29
|
(1.73)
|
44,044
|
0.67
|
0.77
|
2.10
|
45
|
|
Year
ended 01/31/18 |
9.01
|
0.15
|
0.67
|
0.82
|
(0.18)
|
—
|
(0.18)
|
9.65
|
9.18
|
45,605
|
0.66
|
0.77
|
1.59
|
7
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
9.93
|
0.22
|
(1.76)
|
(1.54)
|
(0.18)
|
(0.07)
|
(0.25)
|
8.14
|
(15.53)
|
6,967
|
0.17
|
0.17
|
2.56
|
21
|
|
Year
ended 12/31/21 |
10.08
|
0.20
|
0.14
|
0.34
|
(0.38)
|
(0.11)
|
(0.49)
|
9.93
|
3.38
|
7,785
|
0.13
|
0.18
|
1.92
|
27
|
|
Year
ended 12/31/20 |
9.49
|
0.20
|
0.63
|
0.83
|
(0.24)
|
—
|
(0.24)
|
10.08
|
8.71
|
8,821
|
0.09
|
0.19
|
2.09
|
80
|
|
Eleven
months ended 12/31/19 |
9.34
|
0.23
|
0.56
|
0.79
|
(0.35)
|
(0.29)
|
(0.64)
|
9.49
|
8.47
|
8,189
|
0.19(g)
|
0.29(g)
|
2.63(g)
|
6
|
|
Year
ended 01/31/19 |
9.71
|
0.24
|
(0.38)
|
(0.14)
|
(0.23)
|
—
|
(0.23)
|
9.34
|
(1.31)
|
6,671
|
0.18
|
0.28
|
2.59
|
45
|
|
Year
ended 01/31/18 |
9.06
|
0.20
|
0.68
|
0.88
|
(0.23)
|
—
|
(0.23)
|
9.71
|
9.78
|
6,195
|
0.17
|
0.28
|
2.14
|
7
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
9.87
|
0.23
|
(1.75)
|
(1.52)
|
(0.19)
|
(0.07)
|
(0.26)
|
8.09
|
(15.42)
|
9
|
0.07
|
0.07
|
2.66
|
21
|
|
Year
ended 12/31/21 |
10.03
|
0.20
|
0.14
|
0.34
|
(0.39)
|
(0.11)
|
(0.50)
|
9.87
|
3.38
|
10
|
0.10
|
0.15
|
1.95
|
27
|
|
Year
ended 12/31/20 |
9.45
|
0.20
|
0.62
|
0.82
|
(0.24)
|
—
|
(0.24)
|
10.03
|
8.67
|
11
|
0.04
|
0.14
|
2.14
|
80
|
|
Period
ended 12/31/19(h)
|
9.50
|
0.16
|
0.43
|
0.59
|
(0.35)
|
(0.29)
|
(0.64)
|
9.45
|
6.30
|
10
|
0.15(g)
|
0.25(g)
|
2.67(g)
|
6
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
9.87
|
0.23
|
(1.75)
|
(1.52)
|
(0.19)
|
(0.07)
|
(0.26)
|
8.09
|
(15.41)
|
9
|
0.07
|
0.07
|
2.66
|
21
|
|
Year
ended 12/31/21 |
10.03
|
0.20
|
0.14
|
0.34
|
(0.39)
|
(0.11)
|
(0.50)
|
9.87
|
3.37
|
18
|
0.10
|
0.15
|
1.95
|
27
|
|
Year
ended 12/31/20 |
9.45
|
0.20
|
0.62
|
0.82
|
(0.24)
|
—
|
(0.24)
|
10.03
|
8.67
|
11
|
0.04
|
0.14
|
2.14
|
80
|
|
Period
ended 12/31/19(h)
|
9.50
|
0.16
|
0.44
|
0.60
|
(0.36)
|
(0.29)
|
(0.65)
|
9.45
|
6.31
|
10
|
0.07(g)
|
0.17(g)
|
2.75(g)
|
6
|
|
| ||||||||||||||
|
(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)
|
In
addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of
the underlying funds in which the Fund invests. Because
the
underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees
and expenses incurred indirectly by the Fund will vary.
Estimated
underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the
underlying funds and are deducted from the value
of
the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the
Fund’s total return. Estimated acquired fund fees from
underlying
funds was 0.42%, 0.47% and 0.55% for the years ended December 31, 2022, 2021 and 2020, respectively. |
19 Invesco
Select Risk: Conservative Investor Fund
|
(d)
|
Does
not include indirect expenses from affiliated fund fees and expenses of 0.46%, 0.48% and 0.53% for the eleven months ended December 31,
2019, and for the years ended January 31,
2019
and 2018, respectively. |
|
(e)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(f)
|
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 years ended December 31,
2022,
2021 and 2020, respectively. |
|
(g)
|
Annualized.
|
|
(h)
|
Commencement
date after the close of business on May 24, 2019. |
20 Invesco
Select Risk: Conservative Investor Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Select Risk: Conservative Investor Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
O-OPSCI-PRO-1
|
Prospectus
April
28,
2023
Class:
A (AADAX), C (AADCX),
R (AADRX), S (AADSX), Y
(AADYX), R5 (AADIX),
R6(AAESX)
Invesco
Select Risk: Growth Investor Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission
(CFTC) have not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary
is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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Back
Cover |
Invesco
Select Risk: Growth Investor Fund
Fund Summary
Investment
Objective(s)
The
Fund's investment objective is long-term growth of capital consistent with a higher level of risk relative to the broad stock market.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
|
Class:
|
A
|
C
|
R
|
S
|
Y
|
R5
|
R6
|
|
Maximum
Sales Charge (Load) Imposed
on
Purchases (as a percentage of
offering
price) |
5.50%
|
None
|
None
|
None
|
None
|
None
|
None
|
|
| |||||||
|
Maximum
Deferred Sales Charge (Load)
(as
a percentage of original purchase
price
or redemption proceeds,
whichever
is less) |
None1
|
1.00%
|
None
|
None
|
None
|
None
|
None
|
|
| |||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 29%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual funds advised by Invesco Advisers, Inc. (Invesco
or the Adviser) and exchange-traded funds (ETFs) and other pooled investment vehicles advised by Invesco Capital Management LLC (Invesco
Capital) or mutual funds, ETFs and other pooled investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco and
Invesco Capital are affiliates of each other as they are both indirect wholly-owned subsidiaries of Invesco Ltd. The Fund’s target
allocation is to invest approximately 70%-85% of its total assets in underlying funds that invest primarily in equity securities (equity
funds), approximately 5%-30% of its total assets in underlying funds that invest primarily in fixed-income securities (fixed-income funds)
and approximately 5%-20% of its total assets in alternative asset classes including underlying funds that invest primarily in commodities
and other derivatives.
The
Fund does not limit its investment in underlying funds that invest primarily
in foreign securities.
The
Fund may also allocate up to 100% of its assets to affiliated or unaffiliated
ETFs.
The
Fund may invest directly in derivatives to hedge its cash position and
manage the duration of the Fund’s portfolio, including but not limited to futures, total return swaps, and forward contracts. The
Fund may also use other types of derivatives that are consistent with its investment objective and investment strategies. In addition,
the Fund will gain exposure to derivatives through its investment in underlying funds.
The
Adviser uses a three-step process to create the Fund’s portfolio including:
(1) a strategic asset allocation by the Adviser among broad asset classes; (2) the actual selection by the Adviser of underlying funds
to represent the broad asset classes and the determination by the Adviser of target weightings in these underlying funds; in the case
where there are multiple funds in a broad asset class, the Adviser attempts to balance the amount of active risk contributed by each underlying
fund in order to determine the allocation; and (3) the ongoing monitoring of the Fund’s asset class allocations, underlying funds
and target weightings in the underlying funds.
Based
on the portfolio managers’ research, the strategic allocations of the
portfolios are broadly diversified to gain exposure to areas of the market that the portfolio managers believe may perform well over a
full market cycle, including periods of adverse economic environments such as recessions and inflationary growth. The portfolio managers
gain exposure to the desired asset class by selecting the most representative funds. The Adviser rebalances the Fund’s investments
in the underlying funds on an
1 Invesco
Select Risk: Growth Investor Fund
annual
basis to keep them at their target weightings. Although the Adviser has the ability to rebalance on a more frequent basis if it believes
it is appropriate to do so, the Fund’s asset class weightings may not match the above percentage weightings during a quarter due
to market fluctuations, cash flows and other factors. The Adviser may change the Fund’s asset class allocations, the underlying
funds or the target weightings in the underlying funds without notice to, or approval by, shareholders.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. Because the Fund is a fund of funds, the Fund is subject to the risks associated with the underlying funds in which
it invests. The principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism, economic crisis or adverse investor sentiment
generally. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well,
there can be no assurance that specific investments held by an underlying fund will rise in value.
Fund
of Funds Risk. The Fund’s performance depends on that of
the underlying funds in which it invests. Accordingly, the risks associated with an investment in the Fund include the risks associated
with investments in the underlying funds. The Fund will indirectly pay a proportional share of the fees and expenses of the underlying
funds in which it invests. There are risks that the Fund will vary from its target weightings (if any) in the underlying funds, that the
underlying funds will not achieve their investment objectives, that the underlying funds’ performance may be lower than their represented
asset classes, and that the Fund may withdraw its investments in an underlying fund at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) an exchange-traded fund’s shares may trade above or below its net asset value;
(2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading an exchange-traded
fund’s shares may be halted by the listing exchange; (4) a passively-managed exchange-traded fund may not track the performance
of the reference asset; and (5) a passively-managed exchange-traded fund may hold troubled securities. Investment in exchange-traded funds
may involve duplication of management fees and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate
share of any expenses paid by the exchange-traded funds in which it invests. Further, certain exchange-traded funds in which the Fund
or an underlying fund may invest are leveraged, which may result in economic leverage, permitting the Fund or an underlying fund to gain
exposure that is greater than would be the case in an unlevered instrument, and potentially resulting in greater volatility.
Allocation
Risk.
The Fund’s investment performance depends, in part, on how its assets are allocated among the underlying funds or asset classes.
The Adviser’s evaluations and assumptions regarding the asset classes or the underlying funds in which the Fund invests may be incorrect,
causing
the Fund to be invested (or not invested) in one or more asset classes or underlying funds at an inopportune time, which could negatively
affect the Fund’s performance.
Investing
in Stocks Risk.
The value of an underlying fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant
short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have
unexpected negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets
may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Growth
Investing Risk.
If a growth company’s earnings or stock price fails to increase as anticipated, or if its business plans do not produce the expected
results, the value of its securities may decline sharply. Growth companies may be newer or smaller companies that may experience greater
stock price fluctuations and risks of loss than larger, more established companies. Newer growth companies tend to retain a large part
of their earnings for research, development or investments in capital assets. Therefore, they may not pay any dividends for some time.
Growth investing has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth
investing is out of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price
and the securities of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may
also be more volatile than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies.
2 Invesco
Select Risk: Growth Investor Fund
They
may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt and erratic price movements.
Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter or on a regional securities
exchange, where the frequency and volume of trading is substantially less than is typical for securities of larger companies traded on
national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price fluctuations and it might
be harder for an underlying fund to dispose of its holdings at an acceptable price when it wants to sell them. Since small- and mid-cap
companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time, particularly
if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap company,
if any gain is realized at all.
Foreign
Securities Risk.
An underlying fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation
policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk
of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which an underlying fund could lose its
entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign
companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing
and accounting controls, and may therefore be more susceptible to fraud or corruption. There may be less public information available
about foreign companies than U.S. companies, making it difficult to evaluate those foreign companies. Unless an underlying fund has hedged
its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may
cause the value of securities denominated in such foreign currency (or other instruments through which an underlying fund has exposure
to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging
strategies, if used, are not always successful.
European
Investment Risk. The
Economic and Monetary Union (the “EMU”) of the European Union (the “EU”) requires compliance with restrictions
on inflation rates, deficits, interest rates, debt levels and fiscal and monetary controls, each of which may significantly affect every
country in Europe. Decreasing imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of
the euro, the default or threat of default by an EU member country on its sovereign debt, and recessions in an EU member country may have
significant adverse effects on the economies of EU member countries. Responses to financial problems by EU countries may not produce the
desired results, may limit future growth and economic recovery, or may result in social unrest or have other unintended consequences.
Further defaults or restructurings by governments and other entities of their debt could have additional adverse effects on economies,
financial markets, and asset valuations around the world. A number of countries in Eastern Europe remain relatively undeveloped and can
be particularly sensitive to political and economic developments. Separately, the EU faces issues involving its membership, structure,
procedures and policies. The exit of one or more member states from the EU, such as the recent departure of the United Kingdom (known
as “Brexit”), would place its currency and banking system in jeopardy. The exit by the United Kingdom or other member states
will likely result in increased volatility, illiquidity and potentially lower economic growth in the affected markets, which will adversely
affect an underlying fund’s investments.
Japan
Investment Risk.
The Fund may invest a significant portion of its total assets in securities of issuers from Japan. The growth of Japan’s economy
has recently lagged that of its Asian neighbors and other major developed economies. The Japanese economy is heavily dependent on international
trade and has been adversely affected by trade tariffs, other protectionist measures, competition from emerging economies and the economic
conditions of its trading partners. The Japanese economy has
experienced
the effects of the global economic slowdown similar to the United States and Europe, and downturns in the economies of Japan’s key
trading partners, such as the United States, China and/or countries in Southeast Asia, could also have a negative impact on the Japanese
economy as a whole. The Japanese economy also faces several other concerns, including a financial system with large levels of nonperforming
loans, over-leveraged corporate balance sheets, extensive cross-ownership by major corporations, a changing corporate governance structure,
and large government deficits. These issues may cause a continued slowdown of the Japanese economy.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede an underlying fund’s
ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change
quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization
of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country,
protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Depositary
Receipts Risk.
Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers
of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with
respect to the deposited securities to the holders of such receipts. An underlying fund may therefore receive less timely information
or have less control than if it invested directly in the foreign issuer.
Geographic
Focus Risk.
An underlying fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single
country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant
negative impact on an underlying fund’s investment performance.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries.
Quantitative
Models Risk. Quantitative models are based upon many factors that
measure individual securities relative to each other. Quantitative models may be highly reliant on the gathering, cleaning, culling and
analysis of large amounts of data from third parties and other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use of the quantitative models. The factors used in models
may not identify
3 Invesco
Select Risk: Growth Investor Fund
securities
that perform well in the future, and the securities selected may perform differently from the market as a whole or from their expected
performance.
Momentum
Investing Risk.
In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style
of investing emphasizes investing in securities that have had better recent performance compared to other securities, on the theory that
these securities will continue to increase in value. Momentum investing is subject to the risk that the securities may be more volatile
than the market as a whole. High momentum may also be a sign that the securities’ prices have peaked, and therefore the returns
on securities that previously have exhibited price momentum may be less than returns on other styles of investing. Momentum can turn quickly,
and stocks that previously have exhibited high momentum may not experience continued positive momentum. An underlying fund may experience
significant losses if momentum stops, reverses or otherwise behaves differently than predicted. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment performance of an underlying fund may suffer.
Value
Investing Risk. Value investing entails the risk that if the market
does not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value approach
could also result in fewer investments that increase rapidly during times of market gains and could cause an underlying fund to underperform
funds that use a growth or non-value approach to investing. Value investing has gone in and out of favor during past market cycles and
when value investing is out of favor or when markets are unstable, the securities of value
companies may underperform the securities of growth companies
or the overall stock market.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many
other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. An underlying
fund’s adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune
time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially
increase an underlying fund’s portfolio turnover rate and transaction costs.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received
earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in an underlying fund reinvesting
these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage- and asset-backed securities also
are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing
the price of the mortgage- and asset-backed securities and an underlying fund’s share price to fall. An unexpectedly high rate of
defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities and will result in losses
to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of
securities and an underlying fund may be unable to sell these securities at the time or price it desires. During periods of market stress
or high redemptions, an underlying fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid
privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods of market stress. Privately
issued mortgage-related securities are not subject to the same underwriting requirements as those with government or government-sponsored
entity guarantees and, therefore, mortgage loans underlying privately issued mortgage-related securities may have less favorable collateral,
credit risk, liquidity risk or other underwriting characteristics, and wider variances in interest rate, term, size, purpose and borrower
characteristics. An underlying fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with
weakened credit histories or with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage
pools that include subprime mortgages.
High
Yield Debt Securities (Junk Bond) Risk.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject an underlying fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities.
Prices of high yield debt securities tend to be very volatile.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market
anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if an underlying fund
invests in CLOs that hold loans of uncreditworthy borrowers or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an
4 Invesco
Select Risk: Growth Investor Fund
unsecured
basis. Regulators and financial industry working groups in several jurisdictions have worked over the past several years to identify alternative
reference rates (“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve
Bank of New York has identified the Secured Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and
foreign regulators have proposed other interbank offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which underlying fund invests that utilize ARRs will be
similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
Additionally, although regulators have generally prohibited banking institutions from entering into new contracts that reference those
USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and
implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy”
USD LIBOR instruments held by an underlying fund could result in losses to an underlying fund.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of an underlying
fund’s securities become illiquid, an underlying fund may not be able to timely pay redemption proceeds and may need to sell securities
at significantly reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and an underlying fund may be unable to dispose of the securities at a desirable time or price.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities and such securities may be difficult to value and may have
significant volatility.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay
an
underlying fund or the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because
they do not require payment up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse
change in the value of the underlying asset could result in an underlying fund or the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the underlying fund’s
or the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional
investments and the underlying fund or the Fund may be unable to sell or close out its derivative positions at a desirable time or price.
This risk may be more acute under adverse market conditions, during which the underlying fund or the Fund may be most in need of liquidating
its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that
could impact the underlying fund’s or the Fund’s ability to use certain derivatives or their cost. Derivatives strategies
may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may
not provide the expected benefits, particularly during adverse market conditions.
REIT
Risk/Real Estate
Risk.
Investments in real estate related
instruments may be adversely affected by economic, legal,
cultural, environmental or technological factors that affect property
values, rents or occupancies. Shares of real estate related companies,
which tend to be small-
and mid-cap companies, may be more volatile and less liquid than
larger companies. If a real estate related company defaults on certain types of debt obligations,
held by an underlying fund, an underlying fund may acquire real
estate directly, which involves additional risks such as environmental liabilities;
difficulty in
valuing and
selling the real estate; and economic or regulatory changes.
Commodity
Risk.
An underlying fund may have investment exposure to the commodities markets and/or a particular sector of the commodities markets, which
may subject an underlying fund to greater volatility than investments in traditional securities, such as stocks and bonds. Volatility
in the commodities markets may be caused by changes in overall market movements, domestic and foreign political and economic events and
policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning interest rates,
domestic and foreign inflation rates, investment and trading activities of mutual funds, hedge funds and commodities funds, and factors
such as drought, floods, weather, livestock disease, embargoes, tariffs and other regulatory developments, or supply and demand disruptions.
Because an underlying fund’s performance may be linked to the performance of volatile commodities, investors should be willing to
assume the risks of potentially significant fluctuations in the value of underlying fund’s shares.
Financial
Markets
Regulatory Risk.
Policy changes by the U.S.
government
or its regulatory agencies and political events within the U.S.
and abroad may, among other things, affect investor and consumer
confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact
an underlying fund’s operations,
universe of potential investment options,
and return potential.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. Because the investment process of the Fund relies heavily on its
asset allocation process, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on the Fund’s net asset value. Similarly, because the
5 Invesco
Select Risk: Growth Investor Fund
investment
processes of certain underlying funds rely heavily on their security selection processes, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on certain underlying funds’ net asset values. Additionally,
legislative, regulatory, or tax developments may adversely affect management of the Fund and underlying funds and, therefore, their abilities
to achieve their investment objectives.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The bar chart shows changes in the performance
of the Fund from year to year as of December 31. The performance table compares the Fund's performance to that of a broad measure of market
performance and an additional index with characteristics relevant to the Fund.
The
Fund's past performance (before and after taxes) is not necessarily an indication of its future performance.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund's website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
15.95%
|
|
Worst
Quarter |
March
31, 2020 |
-20.58%
|
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
4/30/2004
|
-23.26%
|
1.53%
|
4.56%
|
|
Return
After Taxes on Distributions |
|
-24.37
|
-0.30
|
3.39
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
-13.15
|
1.01
|
3.47
|
|
| ||||
|
Class
C |
4/30/2004
|
-20.19
|
1.90
|
4.53
|
|
| ||||
|
Class
R |
4/30/2004
|
-19.04
|
2.41
|
4.89
|
|
| ||||
|
Class
S |
9/25/2009
|
-18.68
|
2.78
|
5.26
|
|
| ||||
|
Class
Y |
10/3/2008
|
-18.59
|
2.92
|
5.41
|
|
| ||||
|
Class
R5 |
4/30/2004
|
-18.57
|
2.98
|
5.51
|
|
| ||||
|
Class
R6 |
4/4/2017
|
-18.57
|
3.01
|
5.361
|
|
| ||||
|
Custom
Invesco Select Risk: Growth Investor Index
(80%
MSCI ACWI (Net) (reflects reinvested
dividends
net of withholding taxes, but reflects no
deduction
for fees, expenses or other taxes) and
20%
Bloomberg Global Aggregate USD Hedged
Index
(reflects
no deduction for fees, expenses or
taxes))
|
|
-16.81
|
4.46
|
6.85
|
|
| ||||
|
Bloomberg
Global Aggregate USD Hedged Index
(reflects
no deduction for fees, expenses or taxes) |
|
-11.22
|
0.36
|
1.70
|
|
| ||||
|
MSCI
All Country World Index (Net) (reflects
reinvested
dividends net of withholding taxes, but
reflects
no deduction for fees, expenses or other
taxes)
|
|
-18.36
|
5.23
|
7.98
|
|
| ||||
1
Performance shown prior to the inception
date is that of the Fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although invested in
the same portfolio of securities, Class R6 shares' returns of the Fund will be different from Class A shares' returns of the Fund as they
have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Jeffrey
Bennett, CFA |
Portfolio
Manager |
2020
|
|
| ||
|
Alessio
de Longis, CFA |
Portfolio
Manager |
2023
|
|
| ||
|
Scott
Hixon, CFA |
Portfolio
Manager |
2023
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
6 Invesco
Select Risk: Growth Investor Fund
There
are no minimum investments for Class S shares for fund accounts.
The minimum investments for Class A, C, R and Y shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is long-term growth of capital consistent with a higher level of risk relative to the broad stock market.
The Fund’s investment objective may be changed by the Board of Trustees (the Board) without shareholder approval.
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual
funds advised by Invesco and ETFs and other pooled investment vehicles advised by Invesco Capital or mutual funds, ETFs and other pooled
investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco and Invesco Capital are affiliates of each other
as they are both indirect wholly-owned subsidiaries of Invesco Ltd. The Fund’s target allocation is to invest approximately 70%-85%
of its total assets in underlying funds that invest primarily in equity securities (equity funds), approximately 5%-30% of its total assets
in underlying funds that invest primarily in fixed-income securities (fixed-income funds) and approximately 5%-20% of its total assets
in alternative asset classes including underlying funds that invest primarily in commodities and other derivatives.
The
Fund does not limit its investment in underlying funds that invest primarily
in foreign securities.
The
Fund may also allocate up to 100% of its assets to affiliated or unaffiliated
ETFs. An ETF may be actively managed or it may seek to track the performance of an index, a commodity or a basket of assets, but its shares
trade like stock on an exchange. Shares of ETFs experience price changes throughout the day as they are bought and sold.
The
Fund may use derivatives to hedge its cash position and manage the
duration of the Fund’s portfolio, including but not limited to futures, total return swaps and forward contracts. The Fund may also
use other types of derivatives that are consistent with its investment objective and investment strategies. With respect to derivatives,
references to the “underlying funds” also include the Fund and references to the “Fund” also include the underlying
funds. The underlying funds can invest in a number of different type of “derivative” instruments. A derivative is an instrument
whose value depends on (or is derived from) the value of an underlying security, asset, interest rate, index or currency. Derivatives
may allow an underlying fund to increase or decrease its exposure to certain markets or risks.
Some
underlying funds may use derivatives to seek income or capital gain
or to hedge against the risks of other investments. Options, futures, forward contracts and swaps are some of the types of derivatives
the underlying funds can use. The underlying funds may also use other types of derivatives that are consistent with their investment strategies
or for hedging purposes. The underlying funds are not required to use derivatives in seeking their investment objectives or for hedging
and might not do so.
There
is no target range for indirect investment in derivatives at the Fund
level.
The
Adviser uses a three-step process to create the Fund’s portfolio including:
(1) a strategic asset allocation by the Adviser among broad asset classes; (2) the actual selection by the Adviser of underlying funds
to represent the broad asset classes and the determination by the Adviser of target weightings in these underlying funds; in the case
where there are multiple funds in a broad asset class, the Adviser attempts to balance the amount of active risk contributed by each underlying
fund in order to determine the allocation; and (3) the ongoing monitoring of the Fund’s asset class allocations, underlying funds
and target weightings in the underlying funds.
Based
on the portfolio managers’ research, the strategic allocations of the
portfolios are broadly diversified to gain exposure to areas of the market that the portfolio managers believe may perform well over a
full market cycle, including periods of adverse economic environments such as recessions and inflationary growth. The portfolio managers
gain exposure to the desired asset class by selecting the most representative funds. The Adviser rebalances the Fund’s investments
in the underlying funds on an annual basis to keep them at their target weightings. Although the Adviser has the ability to rebalance
on a more frequent basis if it believes it is appropriate to do so, the Fund’s asset class weightings may not match the above percentage
weightings during a quarter due to market fluctuations, cash flows and other factors. The Adviser may change the Fund’s asset class
allocations, the underlying funds or the target weightings in the underlying funds without notice to, or approval by, shareholders.
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Select Risk: Growth Investor Fund
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment
generally. The value of an underlying fund’s investments may also go up or down due to factors that affect an individual issuer
or a particular industry or sector, such as changes in production costs and competitive conditions within an industry. In addition, natural
or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism, economic crisis
or other events may have a significant impact on the value of an underlying fund’s investments, as well as the financial markets
and global economy generally. Such circumstances may also impact the ability of the Adviser to effectively implement an underlying fund’s
investment strategy. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform
well, there can be no assurance that specific investments held by an underlying fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO) member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine
(and the potential for further sanctions in response to Russia’s continued military activity) may escalate. These and other corresponding
events, have had, and could continue to have, severe negative effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall uncertainty. The negative impacts may be particularly acute in certain sectors including,
but not limited to, energy and financials. Russia may take additional countermeasures or retaliatory actions (including cyberattacks),
which could exacerbate negative consequences on global financial markets. The duration of the conflict and corresponding sanctions and
related events cannot be predicted. The foregoing may result in a negative impact on Fund performance and the value of an investment in
an underlying fund, even beyond any direct investment exposure an underlying fund may have to Russian issuers or the adjoining geographic
regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other
significant
economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing
political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing
effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may
result in significant and prolonged effects on an underlying fund’s performance.
Fund
of Funds Risk.
The Fund’s performance depends on that of the underlying funds in which it invests. Accordingly, the risks associated with an investment
in the Fund include the risks associated with investments in the underlying funds. The Fund will indirectly pay a proportional share of
the fees and expenses of the underlying funds in which it invests. There is a risk that the Fund will vary from its target weightings
(if any) in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will
achieve their investment objectives, and their performance may be lower than their represented asset classes. Underlying Funds that are
not affiliated with the Fund may change their portfolio managers, investment objectives, investment strategies, policies or practices
without the approval of the Fund, which may cause the Fund to withdraw its investments therein at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) the market price of an exchange-traded fund’s shares may trade above or below
its net asset value; (2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading
an exchange-traded fund’s shares may be halted if the listing exchange’s officials deem such action appropriate; (4) a passively-managed
exchange-traded fund may not accurately track the performance of the reference asset; and (5) a passively-managed exchange-traded fund
would not necessarily sell a security because the issuer of the security was in financial trouble unless the security is removed from
the index that the exchange-traded fund seeks to track. Investment in exchange-traded funds may involve duplication of management fees
and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded
funds in which it invests. Further, certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged. Investing
in leveraged exchange-traded funds may result in economic leverage, which does not result in the possibility of the Fund or an underlying
fund incurring obligations beyond its investments, but nonetheless permits the Fund or an underlying fund to gain exposure that is greater
than would be the case in an unlevered instrument, which can result in greater volatility.
Allocation
Risk. The Fund’s investment performance depends, in part,
on how its assets are allocated among the underlying funds or asset classes. The Adviser’s evaluations and assumptions regarding
the asset classes or the underlying funds in which the Fund invests may be incorrect, causing the Fund to be invested (or not invested)
in one or more asset classes or underlying funds at an inopportune time. The Adviser’s allocation of the Fund’s assets among
asset classes and underlying funds may therefore not produce the desired results and could cause the Fund to perform poorly or underperform
the Fund’s benchmark and other available funds.
◾
Affiliated
Portfolio Risk. In managing the Fund, the Adviser will have authority
to select and substitute underlying funds. The Adviser may be subject to potential conflicts of interest in selecting underlying funds
because the fees paid to the Adviser or its affiliates by some underlying funds for advisory services are higher than the fees paid by
other underlying funds. In addition, the Fund's portfolio managers may also serve as portfolio managers of the underlying funds.
However, the Adviser monitors the investment process to seek to
8 Invesco
Select Risk: Growth Investor Fund
identify,
address and resolve any potential issues and has adopted certain compliance procedures which are designed to address these types of conflicts.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of an underlying fund’s portfolio may be affected by changes in
the stock markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets
may experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-sized companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Growth
Investing Risk. Growth companies are companies whose earnings
and stock prices are expected to grow at a faster rate than the overall market. If a growth company’s earnings or stock price fails
to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline sharply.
Growth companies can be new or established companies that may be entering a growth cycle in their business and therefore may experience
greater stock price fluctuations and risks of loss than larger, more established companies. Their anticipated growth may come from developing
new products or services or from expanding into new or growing markets. Growth companies may be applying new technologies, new or improved
distribution methods or new business models that could enable them to capture an important or dominant market position. They may have
a special area of expertise or the ability to take advantage of changes in demographic or other factors in a more profitable way. Newer
growth companies generally tend to invest a large part of their earnings in research, development or capital assets. Although newer growth
companies may not pay any dividends for some
time,
their stocks may be valued because of their potential for price increases. Growth investing has gone in and out of favor during past market
cycles and is likely to continue to do so. During periods when growth investing is out of favor or when markets are unstable, it may be
more difficult to sell growth company securities at an acceptable price and the securities of growth companies may underperform the securities
of value companies or the overall stock market. Growth stocks may also be more volatile than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable price when it wants to sell them.
In addition, investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities
(this is sometimes referred to as “price arbitrage”), which could interfere with the efficient management of an underlying
fund. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends
for some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in
a small- or mid-cap company, if any gain is realized at all. The relative sizes of companies may change over time as the securities market
changes, and an underlying fund is not required to sell the securities of companies whose market capitalizations have grown or decreased
due to market fluctuations.
Foreign
Securities Risk.
The value of an underlying fund's foreign investments may be adversely affected by political and social instability in the home countries
of the issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which an underlying fund could lose its entire investments in a certain market) and the possible adoption of foreign
governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S.
companies, including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud
or corruption. Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies
making it more difficult for an underlying fund’s adviser to evaluate those companies. The laws of certain countries may put limits
on an underlying fund’s ability to recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security,
or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due
to the size of the market or other factors. Changes in political and economic factors in one country or region could adversely affect
conditions in another country or region. Investments in foreign securities may also expose an underlying fund to time-zone arbitrage risk.
At times, an underlying fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse
events that occur in that country or region. Unless an underlying fund has hedged its foreign currency exposure, foreign securities
9 Invesco
Select Risk: Growth Investor Fund
risk
also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign
currency (or other instruments through which an underlying fund has exposure to foreign currencies) to decline in value. Currency exchange
rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. For instance,
currency forward contracts, if used, could reduce performance if there are unanticipated changes in currency exchange rates.
European
Investment Risk. Europe
includes both developed and emerging markets. Most countries in Western Europe, and a number of countries in Eastern Europe, are members
of the EU and the EMU. The EMU, which is authorized to direct monetary policies, including policies related to money supply and interest
rates for the euro, requires compliance by member states with restrictions on inflation rates, deficits, interest rates, debt levels and
other tight fiscal and monetary controls, each of which may significantly affect every country in Europe. Decreasing imports or exports,
changes in governmental or EU regulations on trade, changes in the exchange rate of the euro (the common currency of certain EU countries),
the default or threat of default by an EU member country on its sovereign debt, and/or an economic recession in an EU member country may
have significant adverse effects on the economies of EU member countries and the EU as a whole. In recent years, the European financial
markets have experienced volatility and adverse trends due to concerns about rising government debt levels of several European countries,
including Greece, Spain, Ireland, Italy and Portugal. These events have adversely affected the exchange rate of the euro and may continue
to significantly affect every country in Europe, including EU member countries that do not use the euro and non-EU member countries. Responses
to the financial problems by European governments, central banks, and others, including austerity measures and reforms, may not produce
the desired results, may limit future growth and economic recovery, or may result in social unrest or have other unintended consequences.
Further defaults or restructurings by governments and other entities of their debt could have additional adverse effects on economies,
financial markets, and asset valuations around the world. The markets in Eastern Europe remain relatively undeveloped and can be particularly
sensitive to political and economic developments.
The
EU faces issues involving its membership, structure, procedures and
policies. On January 31, 2020, the United Kingdom withdrew from the EU. The country’s departure, referred to as “Brexit”,
sparked depreciation in the value of the British pound, short term declines in the stock markets and heightened risk of continued economic
volatility worldwide. Although the long-term effects of Brexit are difficult to gauge and cannot be fully known, they could have wide
ranging implications for the United Kingdom’s economy, including: possible inflation or recession, continued depreciation of the
pound, or disruption to Britain’s trading arrangements with the rest of Europe. The United Kingdom is one of Europe’s largest
economies; its departure from the EU also may negatively impact the EU and Europe as a whole, such as by causing volatility within the
union, triggering prolonged economic downturns in certain European countries or sparking additional member states to contemplate departing
the EU (thereby perpetuating political instability in the region). An exit by other member states will likely result in increased volatility,
illiquidity and potentially lower economic growth in the affected markets, which will adversely affect an underlying fund’s investments.
Japan
Investment Risk.
Japan may be subject to political, economic, nuclear, labor, natural disaster, and regional and global conflict risks, among others. Any
of these risks, individually or in the aggregate, can impact an investment made in Japan. The growth of Japan’s economy has recently
lagged that of its Asian neighbors and other major developed economies. The Japanese economy is heavily dependent on international trade
and has been adversely affected by trade tariffs, other protectionist measures, competition from emerging economies and the economic conditions
of its trading partners. The Japanese economy has experienced the effects of the global economic slowdown similar to the United States
and Europe, and
downturns
in the economies of Japan’s key trading partners, such as the United States, China and/or countries in Southeast Asia, could also
have a negative impact on the Japanese economy as a whole. Japan has a limited supply of natural resources, and is heavily dependent on
oil imports, and higher commodity prices could therefore have a negative impact on the Japanese economy.
The
Japanese economy faces additional concerns, including a financial system
with large levels of nonperforming loans, over-leveraged corporate balance sheets, extensive cross-ownership by major corporations, a
changing corporate governance structure, and large government deficits. These issues may cause a continued slowdown of the Japanese economy.
The nuclear power plant catastrophe in Japan in March 2011 may have long-term effects on the Japanese economy and its nuclear energy industry.
Moreover,
Japan has an aging workforce and has experienced a significant
population decline in recent years. Japan’s labor market appears to be undergoing fundamental structural changes as a result, which
may adversely affect its economic competitiveness in the world marketplace.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede an underlying fund’s ability to evaluate such companies. In addition, certain emerging market countries
may impose material limitations on Public Company Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities,
which can hinder the PCAOB’s ability to engage in independent oversight or inspection of accounting firms located in or operating
in certain emerging markets. There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce
10 Invesco
Select Risk: Growth Investor Fund
actions
in emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims
may be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market
countries may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries have been engaged in programs to sell all or part of their interests
in government-owned or controlled enterprises. However, in certain emerging market countries, the ability of foreign entities to participate
in privatization programs may be limited by local law. There can be no assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Depositary
Receipts Risk. Depositary
receipts involve many of the same risks as those associated with direct investment in foreign securities. In addition, the underlying
issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute
shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited
securities. An underlying fund may therefore receive less timely information or have less control than if it invested directly in the
foreign issuer.
Geographic
Focus Risk. An underlying fund may from time to time have a substantial
amount of its assets invested in securities of issuers located in a single country or a limited number of countries. If an underlying
fund focuses its investments in this manner, adverse economic, political or social conditions in those countries may have a significant
negative impact on an underlying fund’s investment performance. This risk is heightened if an underlying fund focuses its investments
in emerging market countries or developed countries prone to periods of instability.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries. Information about the Fund’s investment in a market sector or group of industries is available in its annual
and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the SEC.
Quantitative
Models Risk. Quantitative models are based upon many factors that
measure individual securities relative to each other. Quantitative models may be highly reliant on the gathering, cleaning, culling and
analysis of large amounts of data from third parties and other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use of the quantitative models. The factors used in models
may not identify securities that perform well in the future, and the securities selected may perform differently from the market as a
whole or from their expected performance.
Momentum
Investing Risk.
In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style
of investing emphasizes investing in securities that have had better recent performance compared to other securities, on the theory that
these securities will continue to increase in value. Momentum investing is subject to the risk that the securities may be more volatile
than the market as a whole. High momentum may also be a sign that the securities’ prices have peaked, and therefore the returns
on securities that previously have exhibited price momentum may be less than returns on other styles of investing. Momentum can turn quickly,
and stocks that previously have exhibited high momentum may not experience continued positive momentum. An underlying fund may experience
significant losses if
momentum
stops, reverses or otherwise behaves differently than predicted. In addition, there may be periods when the momentum style of investing
is out of favor and therefore, the investment performance of an underlying fund may suffer.
Value
Investing Risk. Value investing entails the risk that if the market
does not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value investing
approach could also lead to acquiring fewer securities that might experience rapid price increases during times of market advances. This
could cause the investments to underperform strategies that seek capital appreciation by employing only a growth or other non-value approach.
Value investing has also gone in and out of favor during past market cycles and is likely to continue to do so. During periods when value
investing is out of favor or when markets are unstable, the securities of value companies may underperform the securities of growth companies
or the overall stock market.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the issuer in
a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital
structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred
securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s
financial condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. If an issuer seeks to restructure the terms of its borrowings
or an underlying fund is required to seek recovery upon a default in the payment of interest or the repayment of principal, an underlying
fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s perception of such strength or
in the credit rating of the issuer or the security may affect the value of debt securities. An underlying fund’s adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened
11 Invesco
Select Risk: Growth Investor Fund
volatility
and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the
impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially
lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s
investments and share price may decline. Changes in
central bank policies
could also result in higher than normal redemptions by shareholders,
which could potentially increase an underlying fund’s portfolio turnover rate and transaction costs and potentially lower an underlying
fund’s performance returns.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, differ from
conventional debt securities because principal is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed
securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received earlier or later than
expected due to changes in prepayment rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a
result, an underlying fund may reinvest these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage-
and asset-backed securities also are subject to extension risk. An unexpected rise in interest rates could reduce the rate of prepayments
and extend the life of the mortgage- and asset-backed securities, causing the price of the mortgage- and asset-backed securities and an
underlying fund’s share price to fall and would make the mortgage- and asset-backed securities more sensitive to interest rate changes.
An unexpectedly high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities
and will result in losses to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid
than other types of securities and an underlying fund may be unable to sell these securities at the time or price it desires. During periods
of market stress or high redemptions, an underlying fund may be forced to sell these securities at significantly reduced prices, resulting
in losses. Liquid privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods of market
stress. Privately issued mortgage-related securities are not subject to the same underwriting requirements for the underlying mortgages
that are applicable to those mortgage-related securities that have government or government-sponsored entity guarantees. As a result,
the mortgage loans underlying privately issued mortgage-related securities may, and frequently do, have less favorable collateral, credit
risk, liquidity risk or other underwriting characteristics than government or government-sponsored mortgage-related securities and have
wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics. An underlying fund may
invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories or with lower
capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include subprime mortgages.
High
Yield Debt Securities (Junk Bond) Risk.
An underlying fund’s investments in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated
securities will subject an underlying fund to substantial risk of loss. These securities are considered to be speculative with respect
to the issuer’s ability to pay interest and principal when due and are more susceptible to default or decline in market value due
to adverse economic, regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield
debt securities tend to be very volatile. These securities are less liquid than investment grade debt securities and may be difficult
to sell at a desirable time or price, particularly in times of negative sentiment toward high yield securities.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs
may
also lose value due to collateral defaults and disappearance of subordinate tranches, market anticipation of defaults, and investor aversion
to CLO securities as a class. The risks of CLOs will be greater if an underlying fund invests in CLOs that hold loans of uncreditworthy
borrowers or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. In the years following the 2008 financial crisis,
the integrity of LIBOR was increasingly questioned because several banks contributing to its calculation were accused of rate manipulation
and because of a general contraction in the unsecured interbank lending market. As a result, regulators and financial industry working
groups in several jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to
replace LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the
Secured Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other
interbank offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which an underlying fund invests that utilize ARRs will
be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
Additionally, although regulators have generally prohibited banking institutions from entering into new contracts that reference those
USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and
implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy”
USD LIBOR instruments held by an underlying fund could result in losses to an underlying fund.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is
privately placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during
periods of market stress. If a significant amount of an underlying fund’s securities become illiquid, an underlying fund may not
be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. An underlying
fund may invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an
12 Invesco
Select Risk: Growth Investor Fund
exemption
from registration under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically
may be resold only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers,
or in limited quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration.
Although such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company
Act of 1940, as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities
at a particular time, an underlying fund may have difficulty selling such securities at a desirable time or price. As a result, an underlying
fund’s investment in such securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities
may require their qualified institutional buyers (such as an underlying fund) to keep certain offering information confidential, which
could adversely affect the ability of an underlying fund to sell such securities.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities. Also, restricted securities may be difficult to value
because market quotations may not be readily available, and the securities may have significant volatility. In addition, an underlying
fund may get only limited information about the issuer of a restricted security and therefore may be less able to predict a loss.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between an underlying fund and a counterparty. When an underlying fund is owed money on an OTC derivative, an underlying fund
is dependent on the counterparty to pay or, in some cases, deliver the underlying asset, unless an underlying fund can otherwise sell
its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers
and their creditworthiness (and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally.
In addition, in the event that a counterparty becomes bankrupt or insolvent, an underlying fund’s ability to recover the collateral
that an underlying fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange,
an underlying fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a guarantor for each
contractual obligation under such derivatives) for payment on derivative instruments for which an underlying fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in an underlying fund sustaining
a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have
the potential for unlimited loss, regardless
of the size of an underlying fund’s initial investment. Leverage may therefore make
an underlying fund’s returns more volatile
and increase the risk of loss. In certain market conditions, losses
on derivative instruments can grow larger while the
value
of an underlying fund’s other assets fall, resulting in an underlying fund’s derivative positions becoming a larger percentage
of an underlying fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional investments and an underlying
fund may be unable to sell or exit its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which an underlying fund may be most in need of liquidating its derivative positions. To the extent that an underlying
fund is unable to exit a derivative position because of market illiquidity, an underlying fund may not be able to prevent further losses
of value in its derivatives holdings and the liquidity of an underlying fund and its ability to meet redemption requests may be impaired
to the extent that a substantial portion of an underlying fund’s otherwise liquid assets must be used as margin. Another consequence
of illiquidity is that an underlying fund may be required to hold a derivative instrument to maturity and take or make delivery of the
underlying asset that an underlying fund’s adviser would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency
contracts are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency
movements will not be accurately predicted or do not correspond accurately to changes in the value of an underlying fund's holdings, which
could result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated
changes in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of
the currency increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Forward
Contracts Risk. The projection of short-term currency market movements
is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. The precise matching of the
amounts under forward contracts and the value of the securities involved generally will not be possible because the future value of securities
denominated in foreign currencies will change as a consequence of market movements between the date the forward contract is entered into
and the date it is sold. Investments in forward contracts involve the risk that anticipated currency movements will not be accurately
predicted, causing an underlying fund to sustain losses on these contracts and to pay additional transaction costs.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. An underlying fund may be disadvantaged if it is prohibited from executing a trade outside the daily
permissible price movement.
◾
Options
Risk. If an underlying fund sells a put option, there is a risk
that an underlying fund may be required to buy the underlying investment at a disadvantageous price. If an underlying fund sells a call
option, there is a risk that an underlying fund may be required to sell the underlying investment at a disadvantageous price. If an
13 Invesco
Select Risk: Growth Investor Fund
underlying
fund sells a call option on an investment that an underlying fund owns (a “covered call”) and the investment has increased
in value when the option is exercised, an underlying fund will be required to sell the investment at the call price and will not be able
to realize any of the investment’s value above the call price. Options may involve economic leverage, which could result in greater
price volatility than other investments.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for an underlying fund. Swap agreements are privately negotiated in the over-the-counter
market and may be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following
execution of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and an underlying
fund faces the central clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing
house.
◾
Total
Return Swaps Risk. In a total return swap transaction, one party
agrees to pay the other party an amount equal to the total return on a defined underlying asset or a non-asset reference during a specified
period of time. The underlying asset might be a security or asset or basket of securities or assets or a non-asset reference such as a
securities or other type of index. In return, the other party would make periodic payments based on a fixed or variable interest rate
or on the total return from a different underlying asset or non-asset reference. Total return swaps could result in losses if the
underlying asset or reference does not perform as anticipated. Total return swaps can have the potential for unlimited losses. They are
also subject to counterparty risk. If the counterparty fails to meet its obligations, an underlying fund may lose money.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of an underlying fund’s taxable income or gains, and may limit or prevent an underlying fund from using
certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to
implement or require an underlying fund to change its investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that an underlying fund uses derivatives for hedging or to gain or limit exposure to a particular market or
market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being
hedged or the relevant market or market segment, in which case an underlying fund may not realize the intended benefits. There is also
the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all.
An underlying fund’s use of derivatives may be limited by the requirements for taxation of an underlying fund as a regulated investment
company.
REIT
Risk/Real Estate
Risk.
Investments in real estate related
instruments may be adversely affected by economic, legal, cultural,
environmental or technological factors that affect property values,
rents or occupanciesof real estate related to an underlying funds
holdings. Real estate companies, including REITs or similar structures,
tend to be
small-
and mid-cap companies and their shares may be more volatile and
less liquid than larger companies. The value
of investments in real estate related companies
may be affected by the
quality of management, the ability to repay loans, the utilization
of leverage and financial covenants related thereto,
whether the company carries adequate insurance and environmental
factors. If a real estate related company defaults on certain
types
of debt obligations held by the underlying fund, the underlying fund may acquire real estate directly, which
involves additional
risks such as environmental liabilities;
difficulty in valuing and selling the real
estate;
and economic or regulatory changes.
Commodity
Risk.
An underlying fund may have investment exposure to the commodities markets and/or a particular sector of the commodities markets, which
may subject an underlying fund to greater volatility than investments in traditional securities, such as stocks and bonds. The commodities
markets may fluctuate widely based on a variety of factors, including changes in overall market movements, domestic and foreign political
and economic events and policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning
interest rates, domestic and foreign inflation rates and investment and trading activities of mutual funds, hedge funds and commodities
funds. Prices of various commodities may also be affected by factors such as drought, floods, weather, livestock disease, embargoes, tariffs
and other regulatory developments. The prices of commodities can also fluctuate widely due to supply and demand disruptions in major producing
or consuming regions and changes in transportation, handling and storage costs. Certain commodities may be produced in a limited number
of countries and may be controlled by a small number of producers or groups of producers. As a result, political, economic and supply
related events in such countries could have a disproportionate impact on the prices of such commodities. Because an underlying fund’s
performance may be linked to the performance of volatile commodities, investors should be willing to assume the risks of potentially significant
fluctuations in the value of an underlying fund’s shares.
Financial
Markets Regulatory Risk.
Policy changes by
the U.S. government or its regulatory agencies and political events within the U.S.
and abroad, changes to the monetary policy by the Federal Reserve
or other regulatory
actions, the
U.S. government’s
inability at times to agree on a long-term budget and deficit reduction plan or other legislation aimed at addressing financial or economic
conditions, the threat of a federal government shutdown,
and threats not to increase or suspend the federal government’s
debt limit, may affect investor and consumer confidence,
increase volatility in the financial markets,
perhaps suddenly and to
a significant degree, result in higher interest rates, and even
raise concerns about the U.S. government’s credit rating and ability to service its debt.
Such changes and events may adversely impact an underlying fund’s
operations, universe
of potential investment options, and return potential.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. There can be no guarantee that the Fund’s Adviser’s
and certain underlying funds’ advisers' investment techniques or investment decisions will produce the desired results. Because
the investment process of the Fund relies heavily on its asset allocation process, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on the Fund’s net asset value. Similarly, because the investment
processes of certain underlying funds rely heavily on their security selection processes, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on certain underlying funds’ net asset values. Additionally,
legislative, regulatory, or tax developments may adversely affect management of the Fund and underlying funds and, therefore, their abilities
to achieve their investment objectives.
14 Invesco
Select Risk: Growth Investor Fund
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other investment portfolios
that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance of the Fund’s day-to-day
management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as successor in interest
to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Regulation
under the Commodity Exchange Act
The
Adviser is registered as a “commodity pool operator” (CPO) under the Commodity Exchange Act and the rules of the CFTC and
is subject to CFTC regulation with respect to the Fund. The CFTC has adopted rules regarding the disclosure, reporting and recordkeeping
requirements that apply with respect to the Fund as a result of the Adviser’s registration as a CPO. Generally, these rules allow
for substituted compliance with CFTC disclosure and shareholder reporting requirements, based on the Adviser’s compliance with comparable
SEC requirements. This means that for most of the CFTC’s disclosure and shareholder reporting requirements applicable to the Adviser
as the Fund’s CPO, the Adviser’s compliance with SEC disclosure and shareholder reporting requirements will be deemed to fulfill
the Adviser’s CFTC compliance obligations. However, as a result of CFTC regulation with respect to the Fund, the Fund may incur
additional compliance and other expenses. The Adviser is also registered as a “commodity trading advisor” (CTA) but, with
respect to the Fund, relies on an exemption from CTA regulation available for a CTA that also serves as the Fund’s CPO.
Adviser
Compensation
The
Adviser does not receive a management fee from the Fund.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for determining the asset class allocation, underlying fund selections and
target weightings for the Fund:
◾
Jeffrey
Bennett, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2019. From 2016 to 2019, he was associated with OppenheimerFunds, a global asset management firm.
◾
Alessio
de Longis, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 2019. Prior to joining Invesco, Mr.
de Longis was associated with OppenheimerFunds, a global asset
management firm, since 2004.
◾
Scott
Hixon, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 1994.
The
portfolio managers are assisted by investment professionals from the
Invesco Investment Solutions Team. Members of the team may change from time to time.
The
underlying funds are managed by portfolio managers.
More
information on the Fund’s portfolio managers and the portfolio managers
managing the affiliated underlying funds may be found at www.invesco.com/us. The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category VI Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
15 Invesco
Select Risk: Growth Investor Fund
The
financial highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of
the Fund or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)(b)
|
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
(c)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed(d)
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets(b)
|
Portfolio
turnover
(e)
|
|
Class
A | ||||||||||||||
|
Year
ended 12/31/22 |
$16.85
|
$0.17
|
$(3.33)
|
$(3.16)
|
$(0.19)
|
$(0.57)
|
$(0.76)
|
$12.93
|
(18.79)%
|
$787,335
|
0.43%
|
0.43%
|
1.22%
|
29%
|
|
Year
ended 12/31/21 |
15.80
|
0.14
|
1.98
|
2.12
|
(0.25)
|
(0.82)
|
(1.07)
|
16.85
|
13.55
|
1,017,511
|
0.45
|
0.45
|
0.83
|
19
|
|
Year
ended 12/31/20 |
15.79
|
0.14
|
1.71
|
1.85
|
(0.27)
|
(1.57)
|
(1.84)
|
15.80
|
11.87
|
948,121
|
0.47
|
0.47
|
0.92
|
90
|
|
Year
ended 12/31/19 |
14.37
|
0.28
|
2.68
|
2.96
|
(0.22)
|
(1.32)
|
(1.54)
|
15.79
|
20.59
|
889,968
|
0.49
|
0.49
|
1.76
|
32
|
|
Year
ended 12/31/18 |
16.05
|
0.20
|
(1.53)
|
(1.33)
|
(0.20)
|
(0.15)
|
(0.35)
|
14.37
|
(8.27)
|
739,240
|
0.50
|
0.50
|
1.26
|
16
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
16.62
|
0.06
|
(3.28)
|
(3.22)
|
(0.11)
|
(0.57)
|
(0.68)
|
12.72
|
(19.42)
|
40,058
|
1.18
|
1.18
|
0.47
|
29
|
|
Year
ended 12/31/21 |
15.60
|
0.01
|
1.95
|
1.96
|
(0.12)
|
(0.82)
|
(0.94)
|
16.62
|
12.64
|
54,151
|
1.20
|
1.20
|
0.08
|
19
|
|
Year
ended 12/31/20 |
15.64
|
0.02
|
1.70
|
1.72
|
(0.19)
|
(1.57)
|
(1.76)
|
15.60
|
11.09
|
58,187
|
1.22
|
1.22
|
0.17
|
90
|
|
Year
ended 12/31/19 |
14.26
|
0.16
|
2.64
|
2.80
|
(0.10)
|
(1.32)
|
(1.42)
|
15.64
|
19.64
|
73,066
|
1.24
|
1.24
|
1.01
|
32
|
|
Year
ended 12/31/18 |
15.91
|
0.08
|
(1.51)
|
(1.43)
|
(0.07)
|
(0.15)
|
(0.22)
|
14.26
|
(8.95)
|
118,925
|
1.25
|
1.25
|
0.51
|
16
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 12/31/22 |
16.80
|
0.14
|
(3.33)
|
(3.19)
|
(0.16)
|
(0.57)
|
(0.73)
|
12.88
|
(19.04)
|
25,192
|
0.68
|
0.68
|
0.97
|
29
|
|
Year
ended 12/31/21 |
15.76
|
0.10
|
1.97
|
2.07
|
(0.21)
|
(0.82)
|
(1.03)
|
16.80
|
13.24
|
26,032
|
0.70
|
0.70
|
0.58
|
19
|
|
Year
ended 12/31/20 |
15.75
|
0.10
|
1.71
|
1.81
|
(0.23)
|
(1.57)
|
(1.80)
|
15.76
|
11.64
|
21,447
|
0.72
|
0.72
|
0.67
|
90
|
|
Year
ended 12/31/19 |
14.34
|
0.24
|
2.66
|
2.90
|
(0.17)
|
(1.32)
|
(1.49)
|
15.75
|
20.26
|
20,690
|
0.74
|
0.74
|
1.51
|
32
|
|
Year
ended 12/31/18 |
16.01
|
0.16
|
(1.52)
|
(1.36)
|
(0.16)
|
(0.15)
|
(0.31)
|
14.34
|
(8.49)
|
18,275
|
0.75
|
0.75
|
1.01
|
16
|
|
| ||||||||||||||
|
Class
S | ||||||||||||||
|
Year
ended 12/31/22 |
16.82
|
0.19
|
(3.33)
|
(3.14)
|
(0.20)
|
(0.57)
|
(0.77)
|
12.91
|
(18.68)
|
17,951
|
0.33
|
0.33
|
1.32
|
29
|
|
Year
ended 12/31/21 |
15.78
|
0.16
|
1.97
|
2.13
|
(0.27)
|
(0.82)
|
(1.09)
|
16.82
|
13.62
|
24,254
|
0.35
|
0.35
|
0.93
|
19
|
|
Year
ended 12/31/20 |
15.77
|
0.15
|
1.72
|
1.87
|
(0.29)
|
(1.57)
|
(1.86)
|
15.78
|
11.98
|
23,627
|
0.37
|
0.37
|
1.02
|
90
|
|
Year
ended 12/31/19 |
14.35
|
0.30
|
2.67
|
2.97
|
(0.23)
|
(1.32)
|
(1.55)
|
15.77
|
20.73
|
22,788
|
0.39
|
0.39
|
1.86
|
32
|
|
Year
ended 12/31/18 |
16.03
|
0.22
|
(1.53)
|
(1.31)
|
(0.22)
|
(0.15)
|
(0.37)
|
14.35
|
(8.17)
|
20,700
|
0.40
|
0.40
|
1.36
|
16
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
16.79
|
0.21
|
(3.32)
|
(3.11)
|
(0.23)
|
(0.57)
|
(0.80)
|
12.88
|
(18.59)
|
11,673
|
0.18
|
0.18
|
1.47
|
29
|
|
Year
ended 12/31/21 |
15.75
|
0.19
|
1.97
|
2.16
|
(0.30)
|
(0.82)
|
(1.12)
|
16.79
|
13.82
|
14,854
|
0.20
|
0.20
|
1.08
|
19
|
|
Year
ended 12/31/20 |
15.74
|
0.17
|
1.72
|
1.89
|
(0.31)
|
(1.57)
|
(1.88)
|
15.75
|
12.16
|
10,589
|
0.22
|
0.22
|
1.17
|
90
|
|
Year
ended 12/31/19 |
14.33
|
0.32
|
2.67
|
2.99
|
(0.26)
|
(1.32)
|
(1.58)
|
15.74
|
20.86
|
10,233
|
0.24
|
0.24
|
2.01
|
32
|
|
Year
ended 12/31/18 |
16.02
|
0.24
|
(1.54)
|
(1.30)
|
(0.24)
|
(0.15)
|
(0.39)
|
14.33
|
(8.08)
|
8,271
|
0.25
|
0.25
|
1.51
|
16
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
16.93
|
0.22
|
(3.36)
|
(3.14)
|
(0.23)
|
(0.57)
|
(0.80)
|
12.99
|
(18.57)
|
45
|
0.13
|
0.13
|
1.52
|
29
|
|
Year
ended 12/31/21 |
15.88
|
0.19
|
1.99
|
2.18
|
(0.31)
|
(0.82)
|
(1.13)
|
16.93
|
13.84
|
49
|
0.14
|
0.14
|
1.14
|
19
|
|
Year
ended 12/31/20 |
15.86
|
0.19
|
1.72
|
1.91
|
(0.32)
|
(1.57)
|
(1.89)
|
15.88
|
12.20
|
453
|
0.14
|
0.14
|
1.25
|
90
|
|
Year
ended 12/31/19 |
14.42
|
0.34
|
2.69
|
3.03
|
(0.27)
|
(1.32)
|
(1.59)
|
15.86
|
21.05
|
33
|
0.15
|
0.15
|
2.10
|
32
|
|
Year
ended 12/31/18 |
16.12
|
0.26
|
(1.56)
|
(1.30)
|
(0.25)
|
(0.15)
|
(0.40)
|
14.42
|
(8.02)
|
25
|
0.16
|
0.16
|
1.60
|
16
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
16.93
|
0.22
|
(3.36)
|
(3.14)
|
(0.23)
|
(0.57)
|
(0.80)
|
12.99
|
(18.57)
|
118
|
0.13
|
0.13
|
1.52
|
29
|
|
Year
ended 12/31/21 |
15.88
|
0.22
|
1.97
|
2.19
|
(0.32)
|
(0.82)
|
(1.14)
|
16.93
|
13.95
|
594
|
0.05
|
0.05
|
1.23
|
19
|
|
Year
ended 12/31/20 |
15.85
|
0.19
|
1.73
|
1.92
|
(0.32)
|
(1.57)
|
(1.89)
|
15.88
|
12.27
|
584
|
0.14
|
0.14
|
1.25
|
90
|
|
Year
ended 12/31/19 |
14.42
|
0.34
|
2.68
|
3.02
|
(0.27)
|
(1.32)
|
(1.59)
|
15.85
|
20.98
|
11
|
0.15
|
0.15
|
2.10
|
32
|
|
Year
ended 12/31/18 |
16.11
|
0.26
|
(1.55)
|
(1.29)
|
(0.25)
|
(0.15)
|
(0.40)
|
14.42
|
(7.96)
|
10
|
0.16
|
0.16
|
1.60
|
16
|
|
| ||||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Net
investment income (loss) is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.
Ratio of net investment income (loss) does not include net
investment
income of the underlying funds in which the Fund invests. |
|
(c)
|
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. |
16 Invesco
Select Risk: Growth Investor Fund
|
(d)
|
In
addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of
the underlying funds in which the Fund invests. Because
the
underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees
and expenses incurred indirectly by the Fund will vary.
Estimated
underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the
underlying funds and are deducted from the value
of
the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the
Fund’s total return. Estimated acquired fund fees from
underlying
funds 0.50%, 0.54%, 0.58%, 0.58% and 0.55% for the years ended December 31, 2022, 2021, 2020, 2019, and 2018, respectively.
|
|
(e)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
17 Invesco
Select Risk: Growth Investor Fund
Hypothetical Investment and Expense Information
In connection with the
final settlement reached between Invesco and certain of its affiliates with certain regulators, including the New York Attorney General’s
Office, the SEC and the Colorado Attorney General’s Office (the settlement) arising out of certain market timing and unfair pricing
allegations made against Invesco and certain of its affiliates, Invesco and certain of its affiliates agreed, among other things, to disclose
certain hypothetical information regarding investment and expense information to Fund shareholders. The chart below is intended to reflect
the annual and cumulative impact of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s
returns over a 10-year period. The example reflects the following:
◾
You
invest $10,000 in the Fund and hold it for the entire 10-year period;
◾
Your
investment has a 5% return before expenses each year;
◾
The
Fund’s current annual expense ratio includes, if applicable, any contractual fee waiver or expense reimbursement that would apply
for the period for which it was committed;
◾
Hypotheticals
both with and without any applicable initial sales charge applied; and
◾
There
is no sales charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio
for the Fund’s classes for any of the years shown. This is only a hypothetical presentation made to illustrate what expenses and
returns would be under the above scenarios; your actual returns and expenses are likely to differ (higher or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
(1.65%)
|
2.35%
|
6.51%
|
10.85%
|
15.36%
|
20.06%
|
24.94%
|
30.03%
|
35.32%
|
40.83%
|
|
End
of Year Balance |
$9,834.62
|
$10,234.88
|
$10,651.44
|
$11,084.96
|
$11,536.12
|
$12,005.64
|
$12,494.26
|
$13,002.78
|
$13,531.99
|
$14,082.75
|
|
Estimated
Annual Expenses |
$639.67
|
$93.32
|
$97.12
|
$101.07
|
$105.19
|
$109.47
|
$113.92
|
$118.56
|
$123.39
|
$128.41
|
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
0.93%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.07%
|
8.31%
|
12.71%
|
17.30%
|
22.08%
|
27.04%
|
32.21%
|
37.60%
|
43.20%
|
49.02%
|
|
End
of Year Balance |
$10,407.00
|
$10,830.56
|
$11,271.37
|
$11,730.11
|
$12,207.53
|
$12,704.38
|
$13,221.44
|
$13,759.56
|
$14,319.57
|
$14,902.38
|
|
Estimated
Annual Expenses |
$94.89
|
$98.75
|
$102.77
|
$106.96
|
$111.31
|
$115.84
|
$120.56
|
$125.46
|
$130.57
|
$135.88
|
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.68%
|
1.68%
|
1.68%
|
1.68%
|
1.68%
|
1.68%
|
1.68%
|
1.68%
|
0.93%
|
0.93%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.32%
|
6.75%
|
10.29%
|
13.96%
|
17.74%
|
21.65%
|
25.69%
|
29.86%
|
35.15%
|
40.65%
|
|
End
of Year Balance |
$10,332.00
|
$10,675.02
|
$11,029.43
|
$11,395.61
|
$11,773.94
|
$12,164.84
|
$12,568.71
|
$12,985.99
|
$13,514.52
|
$14,064.56
|
|
Estimated
Annual Expenses |
$170.79
|
$176.46
|
$182.32
|
$188.37
|
$194.62
|
$201.09
|
$207.76
|
$214.66
|
$123.23
|
$128.24
|
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.18%
|
1.18%
|
1.18%
|
1.18%
|
1.18%
|
1.18%
|
1.18%
|
1.18%
|
1.18%
|
1.18%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.82%
|
7.79%
|
11.90%
|
16.18%
|
20.62%
|
25.22%
|
30.01%
|
34.97%
|
40.13%
|
45.48%
|
|
End
of Year Balance |
$10,382.00
|
$10,778.59
|
$11,190.33
|
$11,617.81
|
$12,061.61
|
$12,522.36
|
$13,000.71
|
$13,497.34
|
$14,012.94
|
$14,548.23
|
|
Estimated
Annual Expenses |
$120.25
|
$124.85
|
$129.62
|
$134.57
|
$139.71
|
$145.05
|
$150.59
|
$156.34
|
$162.31
|
$168.51
|
|
| ||||||||||
|
Class
S |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.17%
|
8.51%
|
13.04%
|
17.75%
|
22.66%
|
27.78%
|
33.11%
|
38.66%
|
44.44%
|
50.46%
|
|
End
of Year Balance |
$10,417.00
|
$10,851.39
|
$11,303.89
|
$11,775.26
|
$12,266.29
|
$12,777.80
|
$13,310.63
|
$13,865.68
|
$14,443.88
|
$15,046.19
|
|
Estimated
Annual Expenses |
$84.73
|
$88.26
|
$91.94
|
$95.78
|
$99.77
|
$103.93
|
$108.27
|
$112.78
|
$117.48
|
$122.38
|
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.32%
|
8.83%
|
13.53%
|
18.43%
|
23.55%
|
28.89%
|
34.45%
|
40.26%
|
46.32%
|
52.64%
|
|
End
of Year Balance |
$10,432.00
|
$10,882.66
|
$11,352.79
|
$11,843.23
|
$12,354.86
|
$12,888.59
|
$13,445.38
|
$14,026.22
|
$14,632.15
|
$15,264.26
|
|
Estimated
Annual Expenses |
$69.47
|
$72.47
|
$75.60
|
$78.87
|
$82.27
|
$85.83
|
$89.54
|
$93.40
|
$97.44
|
$101.65
|
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.37%
|
8.93%
|
13.69%
|
18.66%
|
23.84%
|
29.26%
|
34.91%
|
40.80%
|
46.95%
|
53.38%
|
|
End
of Year Balance |
$10,437.00
|
$10,893.10
|
$11,369.13
|
$11,865.96
|
$12,384.50
|
$12,925.70
|
$13,490.55
|
$14,080.09
|
$14,695.39
|
$15,337.58
|
|
Estimated
Annual Expenses |
$64.38
|
$67.19
|
$70.13
|
$73.19
|
$76.39
|
$79.73
|
$83.21
|
$86.85
|
$90.64
|
$94.60
|
|
| ||||||||||
18 Invesco
Select Risk: Growth Investor Fund
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
0.63%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.37%
|
8.93%
|
13.69%
|
18.66%
|
23.84%
|
29.26%
|
34.91%
|
40.80%
|
46.95%
|
53.38%
|
|
End
of Year Balance |
$10,437.00
|
$10,893.10
|
$11,369.13
|
$11,865.96
|
$12,384.50
|
$12,925.70
|
$13,490.55
|
$14,080.09
|
$14,695.39
|
$15,337.58
|
|
Estimated
Annual Expenses |
$64.38
|
$67.19
|
$70.13
|
$73.19
|
$76.39
|
$79.73
|
$83.21
|
$86.85
|
$90.64
|
$94.60
|
|
| ||||||||||
1
Your
actual expenses may be higher or lower than those shown.
2
The
hypothetical assumes you hold your investment for a full 10 years. Therefore, any applicable deferred sales charge that might apply in
year one for Class C has not been deducted.
19 Invesco
Select Risk: Growth Investor Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Select Risk: Growth Investor Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
GAL-PRO-1
|
Prospectus
April
28,
2023
Class:
A (OAAIX), C (OCAIX),
R (ONAIX), Y (OYAIX),
R5 (PXQIX), R6 (PXGGX)
Invesco
Select Risk: High Growth Investor Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission
(CFTC) have not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary
is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
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Back
Cover |
Invesco
Select Risk: High Growth Investor Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is to seek total return.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 27%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual funds advised by Invesco Advisers, Inc. (Invesco
or the Adviser) and exchange-traded funds (ETFs) and other pooled investment vehicles advised by Invesco Capital Management
LLC (Invesco Capital) or mutual funds, ETFs and other pooled investment vehicles advised by unaffiliated advisers (the underlying
funds). Invesco and Invesco Capital are affiliates of each other as they are both indirect wholly-owned subsidiaries of Invesco Ltd.
The
Fund generally categorizes each underlying fund as an equity, fixed-income,
or alternative fund based on its investment profile. The Fund typically allocates its assets among underlying funds, and within a pre-determined
percentage range for its assets in equity funds, as determined by the investment adviser in accordance with its outlook for the economy,
the financial markets and the relative market valuations of the underlying funds. Under normal market conditions, the Adviser selects
underlying funds based on its determination that they could provide total return for the Fund.
The
Fund generally invests between 85% and 100% of its assets in equity
funds. Such funds invest in equity securities of domestic and foreign companies, including small, medium and large market capitalization
companies, and growth and value stocks. Equity securities include common stock, preferred stock, rights and warrants, and securities convertible
into common stock. Foreign equities are securities of issuers outside of the United States, including issuers in emerging or developing
markets, i.e., those that are generally in the early stages of their industrial cycles. Underlying funds investing primarily in real estate
securities, listed infrastructure securities, and master limited partnerships (MLPs) will be deemed to be “equity funds” for
purposes of the Fund’s allocation strategy.
The
Fund generally invests the remainder of its assets in a flexible combination
of fixed-income and alternative funds. Fixed-income funds generally invest in fixed income instruments such as investment-grade debt securities,
below-investment-grade high yield securities (or “junk” bonds), government and government-sponsored securities, corporate
bonds, securitized products, and inflation-protected debt securities. Alternative funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment strategies, including primarily through the use of derivatives,
that aim to offer diversification beyond traditional equity and fixed-income securities and may seek to take long and short positions
to manage exposure to certain asset classes. The Fund is not required to invest its assets in any specified percentages of fixed-income
or alternative funds. The Fund does not limit its investment in underlying funds that invest primarily in foreign securities.
The
Fund’s investment in underlying funds is subject to any limitations imposed
by the Investment Company Act of 1940 or any rules thereunder.
1 Invesco
Select Risk: High Growth Investor Fund
The
Fund may temporarily exceed its percentage range for its assets in equity
funds for short periods and may alter the percentage range when it deems appropriate. The Adviser will monitor the markets and allocate
assets among the underlying funds based on changing market or economic conditions and investment opportunities. The Adviser monitors the
underlying fund selections and periodically rebalances the Fund’s investments to bring them back within their asset allocation target
ranges. In response to changing market or economic conditions, the Adviser may change any or all of the underlying funds managed by Invesco
and/or its affiliates, including using funds that may be created in the future, or change the Fund’s asset allocation target ranges
at any time, in each case without prior approval from or notice to shareholders.
The
Fund may invest directly in derivatives to hedge its cash position and
manage the duration of the Fund’s portfolio, including but not limited to futures, total return swaps, and forward contracts. The
Fund may also use other types of derivatives that are consistent with its investment objective and investment strategies. In addition,
the Fund will gain exposure to derivatives through its investments in underlying funds.
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money market mutual funds in the Invesco family of funds. This may also include
shares of funds that provide exposure to inflation protected debt securities and short-term investment-grade debt securities. This will
also generally occur at times when there is an inability to immediately invest funds received from purchases of Fund shares or from redemptions
of other investments or to maintain liquidity.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. Because the Fund is a fund of funds, the Fund is subject to the risks associated with the underlying funds in which
it invests. The principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism, economic crisis or adverse investor sentiment
generally. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well,
there can be no assurance that specific investments held by an underlying fund will rise in value.
Fund
of Funds Risk. The Fund’s performance depends on that of
the underlying funds in which it invests. Accordingly, the risks associated with an investment in the Fund include the risks associated
with investments in the underlying funds. The Fund will indirectly pay a proportional share of the fees and expenses of the underlying
funds in which it invests. There are risks that the Fund will vary from its target weightings (if any) in the underlying funds, that the
underlying funds will not achieve their investment objectives, that the underlying funds’ performance may be lower than their represented
asset classes, and that the Fund may withdraw its investments in an underlying fund at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) an
exchange-traded
fund’s shares may trade above or below its net asset value; (2) an active trading market for the exchange-traded fund’s shares
may not develop or be maintained; (3) trading an exchange-traded fund’s shares may be halted by the listing exchange; (4) a passively-managed
exchange-traded fund may not track the performance of the reference asset; and (5) a passively-managed exchange-traded fund may hold troubled
securities. Investment in exchange-traded funds may involve duplication of management fees and certain other expenses, as the Fund or
an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded funds in which it invests. Further,
certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged, which may result in economic leverage,
permitting the Fund or an underlying fund to gain exposure that is greater than would be the case in an unlevered instrument, and potentially
resulting in greater volatility.
Allocation
Risk.
The Fund’s investment performance depends, in part, on how its assets are allocated among the underlying funds or asset classes.
The Adviser’s evaluations and assumptions regarding the asset classes or the underlying funds in which the Fund invests may be incorrect,
causing the Fund to be invested (or not invested) in one or more asset classes or underlying funds at an inopportune time, which could
negatively affect the Fund’s performance.
Investing
in Stocks Risk.
The value of an underlying fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant
short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have
unexpected negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets
may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less
2 Invesco
Select Risk: High Growth Investor Fund
liquid
than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Rights
and Warrants Risk.
Warrants may be significantly less valuable or worthless on their expiration date and may also be postponed or terminated early, resulting
in a partial or total loss. Rights are similar to warrants, but normally have a short duration and are distributed directly by the issuer
to its shareholders. Rights and warrants have no voting rights, receive no dividends and have no rights with respect to the assets of
the issuer. Warrants and rights are highly volatile and, therefore, more susceptible to sharp declines in value than the underlying security
might be. The market for rights or warrants may be very limited and it may be difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk. The
market values of convertible securities are affected by market interest rates, the risk of actual issuer default on interest or principal
payments and the value of the underlying common stock into which the convertible security may be converted. Additionally, a convertible
security is subject to the same types of market and issuer risks that apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events,
and, as a result, are subject to an increased risk of loss. Convertible securities may be rated below investment grade and therefore considered
to have more speculative characteristics and greater susceptibility to default or decline in market value than investment grade securities.
Growth
Investing Risk.
If a growth company’s earnings or stock price fails to increase as anticipated, or if its business plans do not produce the expected
results, the value of its securities may decline sharply. Growth companies may be newer or smaller companies that may experience greater
stock price fluctuations and risks of loss than larger, more established companies. Newer growth companies tend to retain a large part
of their earnings for research, development or investments in capital assets. Therefore, they may not pay any dividends for some time.
Growth investing has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth
investing is out of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price
and the securities of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may
also be more volatile than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations
and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many
instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially
less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller
companies may be subject to wider price fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable
price when it wants to sell them. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize
a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
Foreign
Securities Risk.
An underlying fund's foreign investments may be adversely affected by political and social instability, changes in
economic
or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve
the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which an underlying fund could
lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls.
Foreign companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements
and auditing and accounting controls, and may therefore be more susceptible to fraud or corruption. There may be less public information
available about foreign companies than U.S. companies, making it difficult to evaluate those foreign companies. Unless an underlying fund
has hedged its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations,
which may cause the value of securities denominated in such foreign currency (or other instruments through which an underlying fund has
exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency
hedging strategies, if used, are not always successful.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede an underlying fund’s
ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change
quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization
of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country,
protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Depositary
Receipts Risk.
Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers
of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with
respect to the deposited securities to the holders of such receipts. An underlying fund may therefore receive less timely information
or have less control than if it invested directly in the foreign issuer.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of an underlying
fund’s securities become illiquid, an underlying fund may not be able to timely pay redemption proceeds and may need to sell securities
at significantly reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become
3 Invesco
Select Risk: High Growth Investor Fund
impaired
and an underlying fund may be unable to dispose of the securities at a desirable time or price.
Geographic
Focus Risk.
An underlying fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single
country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant
negative impact on an underlying fund’s investment performance.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries.
REIT
Risk/Real Estate Risk.
Investments in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological
factors that affect property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap
companies, may be more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt
obligations, held by an underlying fund, an underlying fund may acquire real estate directly, which involves additional risks such as
environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Momentum
Investing Risk.
In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style
of investing emphasizes investing in securities that have had better recent performance compared to other securities, on the theory that
these securities will continue to increase in value. Momentum investing is subject to the risk that the securities may be more volatile
than the market as a whole. High momentum may also be a sign that the securities’ prices have peaked, and therefore the returns
on securities that previously have exhibited price momentum may be less than returns on other styles of investing. Momentum can turn quickly,
and stocks that previously have exhibited high momentum may not experience continued positive momentum. An underlying fund may experience
significant losses if momentum stops, reverses or otherwise behaves differently than predicted. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment performance of an underlying fund may suffer.
Value
Investing Risk. Value investing entails the risk that if the market
does not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value approach
could also result in fewer investments that increase rapidly during times of market gains and could cause an underlying fund to underperform
funds that use a growth or non-value approach to investing. Value investing has gone in and out of favor during past market cycles and
when value investing is out of favor or when markets are unstable, the securities of value
companies may underperform the securities of growth companies
or the overall stock market.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the
creditworthiness
of the issuer and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall
and often has a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause
an underlying fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest
rates may also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held
by an underlying fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails
to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial
strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of
debt securities. An underlying fund’s adviser’s credit analysis may fail to anticipate such changes, which could result in
buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central
bank policies could
also result in higher than normal redemptions by shareholders, which could potentially increase an underlying fund’s portfolio turnover
rate and transaction costs and potentially lower an underlying fund’s performance returns.
High
Yield Debt Securities (Junk Bond) Risk.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject an underlying fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities.
Prices of high yield debt securities tend to be very volatile.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay an underlying fund or the Fund
the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment
up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of
the underlying asset could result in an underlying fund or the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset, which may make the underlying fund’s or the Fund’s returns
more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the
underlying fund or the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be
more acute under adverse market conditions, during which the underlying fund or the Fund may be most in need of liquidating its derivative
positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact
the underlying
4 Invesco
Select Risk: High Growth Investor Fund
fund’s
or the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example,
derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly
during adverse market conditions.
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment strategies will yield uncorrelated performance under all market conditions. In addition, the particular mix of
alternative investments in an underlying fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to
the risk that its alternative investments may undergo a correlation shift, resulting in returns that are correlated with the broader market
and/or with an underlying fund’s other alternative investments.
Quantitative
Models Risk. Quantitative models are based upon many factors that
measure individual securities relative to each other. Quantitative models may be highly reliant on the gathering, cleaning, culling and
analysis of large amounts of data from third parties and other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use of the quantitative models. The factors used in models
may not identify securities that perform well in the future, and the securities selected may perform differently from the market as a
whole or from their expected performance.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact an underlying
fund’s operations, universe of potential investment options, and return potential.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. Because the investment process of the Fund relies heavily on its
asset allocation process, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on the Fund’s net asset value. Similarly, because the investment processes of certain underlying funds rely heavily on their
security selection processes, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on certain underlying funds’ net asset values. Additionally, legislative, regulatory, or tax developments may adversely affect
management of the Fund and underlying funds and, therefore, their abilities to achieve their investment objectives.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The Fund has adopted the performance of the
Oppenheimer Portfolio Series: Growth Investor Fund (the predecessor fund) as the result of a reorganization consummated after the close
of business on May 24, 2019 (the “Reorganization”). Prior to the Reorganization, the
Fund
had not yet commenced operations. The
bar chart shows changes in the performance of the predecessor fund and the Fund from year to year as of December 31. The performance table
compares the predecessor fund’s and the Fund’s performance to that of a broad measure of market performance and additional
index with characteristics relevant to the Fund.
The
Fund’s (and the predecessor fund’s) past performance (before and after
taxes) is not necessarily an indication of how the Fund will perform in the future. The returns shown for periods ending
on or prior to May 24, 2019, are those of the Class A, Class C, Class R and Class Y shares of the predecessor fund. Class A, Class C,
Class R and Class Y shares of the predecessor fund were reorganized into Class A, Class C, Class R and Class Y shares, respectively, of
the Fund after the close of business on May 24, 2019. The returns for Class R5 and Class R6 shares shown prior to May 24, 2019, are those
of the Class A shares of the predecessor fund. Class A, Class C, Class R and Class Y shares’ returns of the Fund will be different
from the returns of the predecessor fund as they have different expenses. Performance for Class A shares has been restated to reflect
the Fund’s applicable sales charge.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
20.30%
|
|
Worst
Quarter |
March
31, 2020 |
-24.12%
|
5 Invesco
Select Risk: High Growth Investor Fund
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
4/5/2005
|
-24.02%
|
1.82%
|
6.29%
|
|
Return
After Taxes on Distributions |
|
-25.17
|
-0.83
|
4.73
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
-13.41
|
1.30
|
4.98
|
|
| ||||
|
Class
C |
4/5/2005
|
-20.94
|
2.19
|
6.25
|
|
| ||||
|
Class
R |
4/5/2005
|
-19.83
|
2.70
|
6.62
|
|
| ||||
|
Class
Y |
4/5/2005
|
-19.42
|
3.23
|
7.17
|
|
| ||||
|
Class
R5 |
5/24/2019
|
-19.38
|
3.201
|
7.011
|
|
| ||||
|
Class
R6 |
5/24/2019
|
-19.38
|
3.221
|
7.021
|
|
| ||||
|
Custom
Invesco Select Risk: High Growth Investor
Index
(90% MSCI ACWI (Net) (reflects reinvested
dividends
net of withholding taxes, but reflects no
deduction
for fees, expenses or other taxes) and
10%
Bloomberg Global Aggregate USD Hedged
Index
(reflects
no deduction for fees, expenses or
taxes))
|
|
-17.58
|
4.86
|
7.42
|
|
| ||||
|
Bloomberg
Global Aggregate USD Hedged Index
(reflects
no deduction for fees, expenses or taxes) |
|
-11.22
|
0.36
|
1.70
|
|
| ||||
|
MSCI
All Country World Index (Net) (reflects
reinvested
dividends net of withholding taxes, but
reflects
no deduction for fees, expenses or other
taxes)
|
|
-18.36
|
5.23
|
7.98
|
|
| ||||
1
Performance shown prior to the inception
date is that of the predecessor fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although
invested in the same portfolio of securities, Class R5 and Class R6 shares' returns of the Fund will be different from Class A shares'
returns of the predecessor fund as they have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Jeffrey
Bennett, CFA |
Portfolio
Manager |
2019
(predecessor fund 2018) |
|
| ||
|
Alessio
de Longis, CFA |
Portfolio
Manager |
2023
|
|
| ||
|
Scott
Hixon, CFA |
Portfolio
Manager |
2023
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek total return. The Fund’s investment objective may be changed by the Board of Trustees
(the Board) without shareholder approval.
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual
funds advised by Invesco and ETFs and other pooled investment vehicles advised by Invesco Capital or mutual funds, ETFs
and other pooled
6 Invesco
Select Risk: High Growth Investor Fund
investment
vehicles advised by unaffiliated advisers (the underlying funds). Invesco and Invesco Capital are affiliates of each other as they
are both indirect wholly-owned subsidiaries of Invesco Ltd.
The
Fund generally categorizes each underlying fund as an equity, fixed-income,
or alternative fund based on its investment profile. The Fund typically allocates its assets among underlying funds, and within a pre-determined
percentage range for its assets in equity funds, as determined by the investment adviser in accordance with its outlook for the economy,
the financial markets and the relative market valuations of the underlying funds. Under normal market conditions, the Adviser selects
underlying funds based on its determination that they could provide total return for the Fund.
The
Fund generally invests between 85% and 100% of its assets in equity
funds. Such funds invest in equity securities of domestic and foreign companies, including small, medium and large market capitalization
companies, and growth and value stocks. Equity securities include common stock, preferred stock, rights and warrants, and securities convertible
into common stock. Foreign equities are securities of issuers outside of the United States, including issuers in emerging or developing
markets, i.e., those that are generally in the early stages of their industrial cycles. Underlying funds investing primarily in real estate
securities, listed infrastructure securities, and master limited partnerships (MLPs) will be deemed to be “equity funds” for
purposes of the Fund’s allocation strategy.
The
Fund generally invests the remainder of its assets in a flexible combination
of fixed-income and alternative funds. Fixed-income funds generally invest in fixed income instruments such as investment-grade debt securities,
below-investment-grade high yield securities (or “junk” bonds), government and government-sponsored securities, corporate
bonds, securitized products, and inflation-protected debt securities. Alternative funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment strategies, including primarily through the use of derivatives,
that aim to offer diversification beyond traditional equity and fixed-income securities and may seek to take long and short positions
to manage exposure to certain asset classes. The Fund is not required to invest its assets in any specified percentages of fixed-income
or alternative funds. The Fund does not limit its investment in underlying funds that invest primarily in foreign securities.
The
Fund’s investment in underlying funds is subject to any limitations imposed
by the Investment Company Act of 1940 or any rules thereunder.
The
Fund may temporarily exceed its percentage range for its assets in equity
funds for short periods and may alter the percentage range when it deems appropriate. The Adviser will monitor the markets and allocate
assets among the underlying funds based on changing market or economic conditions and investment opportunities. The Adviser monitors the
underlying fund selections and periodically rebalances the Fund’s investments to bring them back within their asset allocation target
ranges. In response to changing market or economic conditions, the Adviser may change any or all of the underlying funds managed by Invesco
and/or its affiliates, including using funds that may be created in the future, or change the Fund’s asset allocation target ranges
at any time, in each case without prior approval from or notice to shareholders.
The
Fund may use derivatives to hedge its cash position and manage the
duration of the Fund’s portfolio, including but not limited to futures, total return swaps, and forward contracts. The Fund may
also use other types of derivatives that are consistent with its investment objective and investment strategies. In addition, the Fund
will gain exposure to derivatives through its investments in underlying funds.
With
respect to derivatives, references to the “underlying funds” also include
the Fund and references to the “Fund” also include the underlying funds. The underlying funds can invest in a number of different
types of “derivatives” instruments. A derivative is an instrument whose value depends on (or is derived from) the value of
an underlying security, asset, interest rate, index or currency. Derivatives may allow an underlying fund to increase or decrease its
exposure to certain markets or risks. Some
underlying
funds may use derivatives to seek income or capital gain or to hedge against the risks of other investments. Options, futures, forward
contracts and swaps are some of the types of derivatives the underlying funds can use. The underlying funds may also use other types of
derivatives that are consistent with their investment strategies or for hedging purposes. The underlying funds are not required to use
derivatives in seeking their investment objectives or for hedging and might not do so. There is no target range for indirect investment
in derivatives at the Fund level.
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money market mutual funds in the Invesco family of funds. This may also include
shares of funds that provide exposure to inflation protected debt securities and short-term investment-grade debt securities. This will
also generally occur at times when there is an inability to immediately invest funds received from purchases of Fund shares or from redemptions
of other investments or to maintain liquidity.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
the Fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector,
such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters, widespread
disease or other public health issues, war, military conflict, acts of terrorism, economic crisis or other events may have a significant
impact on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances
may also impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in
the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific
investments held by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO) member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine
(and the potential for further sanctions in response to Russia’s continued military activity) may escalate. These and other corresponding
events, have had, and could continue to have, severe negative effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall uncertainty. The negative impacts may be particularly acute in certain sectors including,
but not limited to, energy and financials. Russia
7 Invesco
Select Risk: High Growth Investor Fund
may
take additional countermeasures or retaliatory actions (including cyberattacks), which could exacerbate negative consequences on global
financial markets. The duration of the conflict and corresponding sanctions and related events cannot be predicted. The foregoing may
result in a negative impact on Fund performance and the value of an investment in the Fund, even beyond any direct investment exposure
the Fund may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Fund
of Funds Risk.
The Fund’s performance depends on that of the underlying funds in which it invests. Accordingly, the risks associated with an investment
in the Fund include the risks associated with investments in the underlying funds. The Fund will indirectly pay a proportional share of
the fees and expenses of the underlying funds in which it invests. There is a risk that the Fund will vary from its target weightings
(if any) in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will
achieve their investment objectives, and their performance may be lower than their represented asset classes. Underlying Funds that are
not affiliated with the Fund may change their portfolio managers, investment objectives, investment strategies, policies or practices
without the approval of the Fund, which may cause the Fund to withdraw its investments therein at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) the market price of an exchange-traded fund’s shares may trade above or below
its net asset value; (2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading
an exchange-traded fund’s shares may be halted if the listing exchange’s officials deem such action appropriate; (4) a passively-managed
exchange-traded fund may not accurately track the performance of the reference asset; and (5) a passively-managed exchange-traded fund
would not necessarily sell a security because the issuer of the security was in financial trouble unless the security is removed from
the index that the exchange-traded fund seeks to track. Investment in exchange-traded funds may involve duplication of management fees
and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded
funds in which it invests. Further, certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged. Investing
in leveraged exchange-traded funds may result in economic leverage, which does not result in the possibility of the Fund or an underlying
fund incurring obligations beyond its investments, but nonetheless permits the Fund or an underlying fund to gain exposure that is greater
than would be the case in an unlevered instrument, which can result in greater volatility.
Allocation
Risk. The Fund’s investment performance depends, in part,
on how its assets are allocated among the underlying funds or asset classes. The Adviser’s evaluations and assumptions regarding
the asset classes or the underlying funds in which the Fund invests may be incorrect, causing the Fund to be invested (or not invested)
in one or more asset
classes
or underlying funds at an inopportune time. The Adviser’s allocation of the Fund’s assets among asset classes and underlying
funds may therefore not produce the desired results and could cause the Fund to perform poorly or underperform the Fund’s benchmark
and other available funds.
◾
Affiliated
Portfolio Risk. In managing the Fund, the Adviser will have authority
to select and substitute underlying funds. The Adviser may be subject to potential conflicts of interest in selecting underlying funds
because the fees paid to the Adviser or its affiliates by some underlying funds for advisory services are higher than the fees paid by
other underlying funds. In addition, the Fund's portfolio managers may also serve as portfolio managers of the underlying funds.
However, the Adviser monitors the investment process to seek to
identify, address and resolve any potential issues and has adopted certain compliance procedures which are designed to address these types
of conflicts.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of an underlying fund’s portfolio may be affected by changes in
the stock markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets
may experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-sized companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the
8 Invesco
Select Risk: High Growth Investor Fund
issuer
in a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s
capital structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred
securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s
financial condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Rights
and Warrants Risk.
Rights and warrants may be purchased directly or acquired as part of other securities. Warrants are options to purchase equity securities
at a specific price during a specific period of time. The price of a warrant does not necessarily move parallel to, and is generally more
volatile than, the price of the underlying security. Warrants may be significantly less valuable or worthless on their expiration date
and may also be postponed or terminated early, resulting in a partial or total loss. Rights are similar to warrants, but normally have
a short duration and are distributed directly by the issuer to its shareholders. Rights and warrants have no voting rights, receive no
dividends and have no rights with respect to the assets of the issuer. Warrants and rights are highly volatile and, therefore, more susceptible
to sharp declines in value than the underlying security might be. The market for rights or warrants may be very limited and it may be
difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk.
The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the
value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be
able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or
the market’s perception of the issuer’s creditworthiness. Convertible securities can be converted into or exchanged for a
set amount of common stock of an issuer within a particular period of time at a specified price or according to a price formula. Convertible
debt securities pay interest and convertible preferred stocks pay dividends until they mature or are converted, exchanged or redeemed.
Some convertible debt securities may be considered “equity equivalents” because of the feature that makes them convertible
into common stock. Since a convertible security derives a portion of its value from the common stock into which it may be converted, a
convertible security is also subject to the same types of market and issuer risks that
apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events.
These convertible securities are subject to an increased risk of loss and are generally subordinate in rank to other debt obligations
of the issuer. Convertible securities may be rated below investment grade and therefore considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
Growth
Investing Risk. Growth companies are companies whose earnings
and stock prices are expected to grow at a faster rate than the overall market. If a growth company’s earnings or stock price fails
to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline sharply.
Growth companies can be new or established companies that may be entering a growth cycle in their business and therefore may experience
greater stock price fluctuations and risks of loss than larger, more established companies. Their anticipated growth may come from developing
new products or services or from expanding into new or growing markets. Growth companies may be applying new technologies, new or improved
distribution methods or new business models that could enable them to capture an important or dominant market position. They may have
a special area of expertise or the ability to take advantage of changes in demographic or other factors in a more profitable way. Newer
growth companies generally tend to invest a large part of their earnings in research, development or capital assets.
Although
newer growth companies may not pay any dividends for some time, their stocks may be valued because of their potential for price increases.
Growth investing has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth
investing is out of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price
and the securities of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may
also be more volatile than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable price when it wants to sell them.
In addition, investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities
(this is sometimes referred to as “price arbitrage”), which could interfere with the efficient management of an underlying
fund. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends
for some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in
a small- or mid-cap company, if any gain is realized at all. The relative sizes of companies may change over time as the securities market
changes, and an underlying fund is not required to sell the securities of companies whose market capitalizations have grown or decreased
due to market fluctuations.
Foreign
Securities Risk.
The value of an underlying fund's foreign investments may be adversely affected by political and social instability in the home countries
of the issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which an underlying fund could lose its entire investments in a certain market) and the possible adoption of foreign
governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S.
companies, including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud
or corruption. Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies
making it more difficult for an underlying fund’s adviser to evaluate those companies. The laws of certain countries may put limits
on an underlying fund’s ability to recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security,
or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due
to the size of the market or other factors. Changes in political and economic factors in one country or region could adversely affect
conditions in another country or region. Investments in foreign securities may also expose an underlying fund to time-zone arbitrage risk.
At times, an underlying fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse
events that occur in that country or region. Unless an
9 Invesco
Select Risk: High Growth Investor Fund
underlying
fund has hedged its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations,
which may cause the value of securities denominated in such foreign currency (or other instruments through which an underlying fund has
exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency
hedging strategies, if used, are not always successful. For instance, currency forward contracts, if used, could reduce performance if
there are unanticipated changes in currency exchange rates.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede an underlying fund’s ability to evaluate such companies. In addition, certain emerging market countries
may impose material limitations on Public Company Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities,
which can hinder the PCAOB’s ability to engage in independent oversight or inspection of accounting firms located in or operating
in certain emerging markets. There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market countries
may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or
resources. The governments in some emerging market countries have been engaged in programs to sell all or part of their interests in government-owned
or controlled enterprises. However, in certain emerging market countries, the ability of foreign entities to participate in privatization
programs may be limited by local law. There can be no assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Depositary
Receipts Risk. Depositary
receipts involve many of the same risks as those associated with direct investment in foreign securities. In addition, the underlying
issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute
shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited
securities. An underlying fund may therefore receive less timely information or have less control than if it invested directly in the
foreign issuer.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is
privately placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during
periods of market stress. If a significant amount of an underlying fund’s securities become illiquid, an underlying fund may not
be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. An underlying
fund may invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption
from registration under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically
may be resold only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers,
or in limited quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration.
Although such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company
Act of 1940, as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities
at a particular time, an underlying fund may have difficulty selling such securities at a desirable time or price. As a result, an underlying
fund’s investment in such securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities
may require their qualified institutional buyers (such as an underlying fund) to keep certain offering information confidential, which
could adversely affect the ability of an underlying fund to sell such securities.
Geographic
Focus Risk. An underlying fund may from time to time have a substantial
amount of its assets invested in securities of issuers located in a single country or a limited number of countries. If an underlying
fund focuses its investments in this manner, adverse economic, political or social conditions in those countries may have a significant
negative impact on an underlying fund’s investment performance. This risk is heightened if an underlying fund focuses its investments
in emerging market countries or developed countries prone to periods of instability.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries. Information about the Fund’s investment in a market sector or group of industries is available in its annual
and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the SEC.
10 Invesco
Select Risk: High Growth Investor Fund
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Real estate companies, including REITs or similar structures, tend to be small- and mid-cap
companies and their shares may be more volatile and less liquid than larger companies. The value of investments in real estate related
companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial covenants
related thereto, whether the company carries adequate insurance and environmental factors. If a real estate related company defaults on
certain types of debt obligations, held by an underlying fund, an underlying fund may acquire real estate directly, which involves additional
risks such as environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Momentum
Investing Risk.
In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style
of investing emphasizes investing in securities that have had better recent performance compared to other securities, on the theory that
these securities will continue to increase in value. Momentum investing is subject to the risk that the securities may be more volatile
than the market as a whole. High momentum may also be a sign that the securities’ prices have peaked, and therefore the returns
on securities that previously have exhibited price momentum may be less than returns on other styles of investing. Momentum can turn quickly,
and stocks that previously have exhibited high momentum may not experience continued positive momentum. An underlying fund may experience
significant losses if momentum stops, reverses or otherwise behaves differently than predicted. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment performance of an underlying fund may suffer.
Value
Investing Risk. Value investing entails the risk that if the market
does not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value investing
approach could also lead to acquiring fewer securities that might experience rapid price increases during times of market advances. This
could cause the investments to underperform strategies that seek capital appreciation by employing only a growth or other non-value approach.
Value investing has also gone in and out of favor during past market cycles and is likely to continue to do so. During periods when value
investing is out of favor or when markets are unstable, the securities of value companies may underperform the securities of growth companies
or the overall stock market.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower
fails
to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial
strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of
debt securities. An underlying fund’s adviser’s credit analysis may fail to anticipate such changes, which could result in
buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central
bank policies could
also result in higher than normal redemptions by shareholders, which could potentially increase an underlying fund’s portfolio turnover
rate and transaction costs and potentially lower an underlying fund’s performance returns.
High
Yield Debt Securities (Junk Bond) Risk.
An underlying fund’s investments in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated
securities will subject an underlying fund to substantial risk of loss. These securities are considered to be speculative with respect
to the issuer’s ability to pay interest and principal when due and are more susceptible to default or decline in market value due
to adverse economic, regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield
debt securities tend to be very volatile. These securities are less liquid than investment grade debt securities and may be difficult
to sell at a desirable time or price, particularly in times of negative sentiment toward high yield securities.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between an underlying fund and a counterparty. When an underlying fund is owed money on an OTC derivative, an underlying fund
is dependent on the counterparty to pay or, in some cases, deliver the underlying asset, unless an underlying fund can otherwise sell
its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers
and their creditworthiness (and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally.
In addition, in the event that a counterparty becomes bankrupt or insolvent, an underlying fund’s ability to recover the collateral
that an underlying fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange,
an underlying fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a guarantor for each
contractual obligation under such derivatives) for payment on derivative instruments for which an underlying fund is owed money.
11 Invesco
Select Risk: High Growth Investor Fund
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in an underlying fund sustaining
a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have
the potential for unlimited loss, regardless
of the size of an underlying fund’s initial investment. Leverage may therefore make
an underlying fund’s returns more volatile
and increase the risk of loss. In certain market conditions, losses
on derivative instruments can grow larger while the value of an underlying fund’s other assets fall, resulting in an underlying
fund’s derivative positions becoming a larger percentage of an underlying fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional investments and an underlying
fund may be unable to sell or exit its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which an underlying fund may be most in need of liquidating its derivative positions. To the extent that an underlying
fund is unable to exit a derivative position because of market illiquidity, an underlying fund may not be able to prevent further losses
of value in its derivatives holdings and the liquidity of an underlying fund and its ability to meet redemption requests may be impaired
to the extent that a substantial portion of an underlying fund’s otherwise liquid assets must be used as margin. Another consequence
of illiquidity is that an underlying fund may be required to hold a derivative instrument to maturity and take or make delivery of the
underlying asset that an underlying fund’s adviser would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency
contracts are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency
movements will not be accurately predicted or do not correspond accurately to changes in the value of an underlying fund's holdings, which
could result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated
changes in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of
the currency increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Forward
Contracts Risk. The projection of short-term currency market movements
is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. The precise matching of the
amounts under forward contracts and the value of the securities involved generally will not be possible because the future value of securities
denominated in foreign currencies will change as a consequence of market movements between the date the forward contract is entered into
and the date it is sold. Investments in forward contracts involve the risk that anticipated currency movements will not be accurately
predicted, causing an underlying fund to sustain losses on these contracts and to pay additional transaction costs.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To
the
extent participants decide to make or take delivery, liquidity in the futures market could be reduced. In addition, futures exchanges
often impose a maximum permissible price movement on each futures contract for each trading session. An underlying fund may be disadvantaged
if it is prohibited from executing a trade outside the daily permissible price movement.
◾
Options
Risk. If an underlying fund sells a put option, there is a risk
that an underlying fund may be required to buy the underlying investment at a disadvantageous price. If an underlying fund sells a call
option, there is a risk that an underlying fund may be required to sell the underlying investment at a disadvantageous price. If an underlying
fund sells a call option on an investment that an underlying fund owns (a “covered call”) and the investment has increased
in value when the option is exercised, an underlying fund will be required to sell the investment at the call price and will not be able
to realize any of the investment’s value above the call price. Options may involve economic leverage, which could result in greater
price volatility than other investments.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for an underlying fund. Swap agreements are privately negotiated in the over-the-counter
market and may be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following
execution of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and an underlying
fund faces the central clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing
house.
◾
Total
Return Swaps Risk. In a total return swap transaction, one party
agrees to pay the other party an amount equal to the total return on a defined underlying asset or a non-asset reference during a specified
period of time. The underlying asset might be a security or asset or basket of securities or assets or a non-asset reference such as a
securities or other type of index. In return, the other party would make periodic payments based on a fixed or variable interest rate
or on the total return from a different underlying asset or non-asset reference. Total return swaps could result in losses if the
underlying asset or reference does not perform as anticipated. Total return swaps can have the potential for unlimited losses. They are
also subject to counterparty risk. If the counterparty fails to meet its obligations, an underlying fund may lose money.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of an underlying fund’s taxable income or gains, and may limit or prevent an underlying fund from using
certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to
implement or require an underlying fund to change its investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that an underlying fund uses derivatives for hedging or to gain or limit exposure to a particular market or
market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being
hedged or the relevant market or market segment, in which case an underlying fund may not realize the intended benefits. There is also
the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all.
An underlying fund’s use of derivatives may be limited by the requirements for taxation of an underlying fund as a regulated investment
company.
12 Invesco
Select Risk: High Growth Investor Fund
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment strategies will yield uncorrelated performance under all market conditions. In addition, the particular mix of
alternative investments in an underlying fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to
the risk that its alternative investments may undergo a correlation shift, resulting in returns that are correlated with the broader market
and/or with an underlying fund’s other alternative investments.
Quantitative
Models Risk. Quantitative models are based upon many factors that
measure individual securities relative to each other. Quantitative models may be highly reliant on the gathering, cleaning, culling and
analysis of large amounts of data from third parties and other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use of the quantitative models. The factors used in models
may not identify securities that perform well in the future, and the securities selected may perform differently from the market as a
whole or from their expected performance.
Financial
Markets Regulatory Risk.
Policy changes by
the U.S. government or its regulatory agencies and political events within the U.S.
and abroad, changes to the monetary policy by the Federal Reserve
or other regulatory
actions, the
U.S. government’s
inability at times to agree on a long-term budget and deficit reduction plan or other legislation aimed at addressing financial or economic
conditions, the threat of a federal government shutdown,
and threats not to increase or suspend the federal government’s
debt limit, may affect investor and consumer confidence,
increase volatility in the financial markets,
perhaps suddenly and to
a significant degree, result in higher interest rates, and even
raise concerns about the U.S. government’s credit rating and ability to service its debt.
Such changes and events may adversely impact an underlying fund’s
operations, universe
of potential investment options, and return potential.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. There can be no guarantee that the Fund’s Adviser’s
and certain underlying funds’ advisers' investment techniques or investment decisions will produce the desired results. Because
the investment process of the Fund relies heavily on its asset allocation process, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on the Fund’s net asset value. Similarly, because the investment
processes of certain underlying funds rely heavily on their security selection processes, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on certain underlying funds’ net asset values. Additionally,
legislative, regulatory, or tax developments may adversely affect management of the Fund and underlying funds and, therefore, their abilities
to achieve their investment objectives.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The
Adviser, as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with
certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to
provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Regulation
under the Commodity Exchange Act
The
Adviser is registered as a “commodity pool operator” (CPO) under the Commodity Exchange Act and the rules of the CFTC and
is subject to CFTC regulation with respect to the Fund. The CFTC has adopted rules regarding the disclosure, reporting and recordkeeping
requirements that apply with respect to the Fund as a result of the Adviser’s registration as a CPO. Generally, these rules allow
for substituted compliance with CFTC disclosure and shareholder reporting requirements, based on the Adviser’s compliance with comparable
SEC requirements. This means that for most of the CFTC’s disclosure and shareholder reporting requirements applicable to the Adviser
as the Fund’s CPO, the Adviser’s compliance with SEC disclosure and shareholder reporting requirements will be deemed to fulfill
the Adviser’s CFTC compliance obligations. However, as a result of CFTC regulation with respect to the Fund, the Fund may incur
additional compliance and other expenses. The Adviser is also registered as a “commodity trading advisor” (CTA) but, with
respect to the Fund, relies on an exemption from CTA regulation available for a CTA that also serves as the Fund’s CPO.
Adviser
Compensation
The
Adviser does not receive a management fee from the Fund.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
13 Invesco
Select Risk: High Growth Investor Fund
Portfolio
Managers
The
following individuals are jointly and primarily responsible for determining the asset class allocation, underlying fund selections and
target weightings for the Fund:
◾
Jeffrey
Bennett, CFA, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Mr. Bennett managed the predecessor fund since 2018 and was associated
with OppenheimerFunds, a global asset management firm, since 2016.
◾
Alessio
de Longis, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 2019. Prior to joining Invesco, Mr. de Longis was associated with OppenheimerFunds, a global asset management firm, since 2004.
◾
Scott
Hixon, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 1994.
The
portfolio managers are assisted by investment professionals from the
Invesco Investment Solutions Team. Members of the team may change from time to time.
The
underlying funds are managed by portfolio managers.
More
information on the Fund’s portfolio managers and the portfolio managers
managing the affiliated underlying funds may be found at www.invesco.com/us. The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category VI Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
14 Invesco
Select Risk: High Growth Investor Fund
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the class
of shares, and the eleven-month period ended December 31, 2019. The financial highlights table is intended to help you understand the
Fund’s and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund
share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund
(assuming
reinvestment of all dividends and distributions). The information for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers
LLP, an independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in
the Fund’s annual report, which is available upon request. The information for fiscal years ended prior to May 24, 2019 has been
audited by the predecessor fund’s auditor. Effective September 30, 2019, the Fund changed its fiscal year end from January 31 to
December 31.
|
|
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(c)
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed(d)
|
Ratio
of net
investment
income
(loss)
to
average
net
assets |
Portfolio
turnover
(e)
|
|
Class
A | ||||||||||||||
|
Year
ended 12/31/22 |
$16.11
|
$0.14
|
$(3.29)
|
$(3.15)
|
$(0.15)
|
$(0.67)
|
$(0.82)
|
$12.14
|
(19.59)%(f)
|
$570,009
|
0.38%(f)
|
0.38%(f)
|
1.02%(f)
|
27%
|
|
Year
ended 12/31/21 |
15.01
|
0.10
|
2.14
|
2.24
|
(0.28)
|
(0.86)
|
(1.14)
|
16.11
|
15.06(f)
|
736,134
|
0.39(f)
|
0.39(f)
|
0.62(f)
|
17
|
|
Year
ended 12/31/20 |
15.84
|
0.09
|
2.01
|
2.10
|
(0.10)
|
(2.83)
|
(2.93)
|
15.01
|
13.52(f)
|
702,842
|
0.42(f)
|
0.42(f)
|
0.62(f)
|
70
|
|
Eleven
months ended 12/31/19 |
16.13
|
0.19
|
2.53
|
2.72
|
(0.18)
|
(2.83)
|
(3.01)
|
15.84
|
16.94
|
657,555
|
0.46(g)
|
0.46(g)
|
1.21(g)
|
31
|
|
Year
ended 01/31/19 |
19.46
|
0.11
|
(2.31)
|
(2.20)
|
(0.18)
|
(0.95)
|
(1.13)
|
16.13
|
(10.71)
|
574,046
|
0.45
|
0.45
|
0.62
|
38
|
|
Year
ended 01/31/18 |
15.59
|
0.07
|
4.24
|
4.31
|
(0.27)
|
(0.17)
|
(0.44)
|
19.46
|
27.83
|
674,845
|
0.46
|
0.47
|
0.42
|
8
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
15.45
|
0.03
|
(3.15)
|
(3.12)
|
(0.04)
|
(0.67)
|
(0.71)
|
11.62
|
(20.19)
|
73,397
|
1.14
|
1.14
|
0.26
|
27
|
|
Year
ended 12/31/21 |
14.43
|
(0.02)
|
2.05
|
2.03
|
(0.15)
|
(0.86)
|
(1.01)
|
15.45
|
14.22
|
104,723
|
1.15
|
1.15
|
(0.14)
|
17
|
|
Year
ended 12/31/20 |
15.37
|
(0.02)
|
1.93
|
1.91
|
(0.02)
|
(2.83)
|
(2.85)
|
14.43
|
12.66
|
104,858
|
1.18
|
1.18
|
(0.14)
|
70
|
|
Eleven
months ended 12/31/19 |
15.71
|
0.07
|
2.46
|
2.53
|
(0.04)
|
(2.83)
|
(2.87)
|
15.37
|
16.16
|
127,666
|
1.22(g)
|
1.22(g)
|
0.45(g)
|
31
|
|
Year
ended 01/31/19 |
18.96
|
(0.02)
|
(2.24)
|
(2.26)
|
(0.04)
|
(0.95)
|
(0.99)
|
15.71
|
(11.39)
|
169,142
|
1.20
|
1.20
|
(0.13)
|
38
|
|
Year
ended 01/31/18 |
15.21
|
(0.06)
|
4.12
|
4.06
|
(0.14)
|
(0.17)
|
(0.31)
|
18.96
|
26.83
|
212,996
|
1.21
|
1.22
|
(0.36)
|
8
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 12/31/22 |
16.09
|
0.10
|
(3.29)
|
(3.19)
|
(0.11)
|
(0.67)
|
(0.78)
|
12.12
|
(19.83)
|
72,465
|
0.64
|
0.64
|
0.76
|
27
|
|
Year
ended 12/31/21 |
14.99
|
0.06
|
2.13
|
2.19
|
(0.23)
|
(0.86)
|
(1.09)
|
16.09
|
14.79
|
87,346
|
0.65
|
0.65
|
0.36
|
17
|
|
Year
ended 12/31/20 |
15.83
|
0.05
|
2.00
|
2.05
|
(0.06)
|
(2.83)
|
(2.89)
|
14.99
|
13.22
|
78,109
|
0.68
|
0.68
|
0.36
|
70
|
|
Eleven
months ended 12/31/19 |
16.11
|
0.15
|
2.53
|
2.68
|
(0.13)
|
(2.83)
|
(2.96)
|
15.83
|
16.72
|
66,628
|
0.72(g)
|
0.72(g)
|
0.96(g)
|
31
|
|
Year
ended 01/31/19 |
19.44
|
0.07
|
(2.31)
|
(2.24)
|
(0.14)
|
(0.95)
|
(1.09)
|
16.11
|
(10.97)
|
56,312
|
0.70
|
0.70
|
0.37
|
38
|
|
Year
ended 01/31/18 |
15.59
|
0.04
|
4.21
|
4.25
|
(0.23)
|
(0.17)
|
(0.40)
|
19.44
|
27.44
|
59,559
|
0.71
|
0.72
|
0.22
|
8
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
16.24
|
0.17
|
(3.32)
|
(3.15)
|
(0.18)
|
(0.67)
|
(0.85)
|
12.24
|
(19.42)
|
12,716
|
0.14
|
0.14
|
1.26
|
27
|
|
Year
ended 12/31/21 |
15.12
|
0.14
|
2.16
|
2.30
|
(0.32)
|
(0.86)
|
(1.18)
|
16.24
|
15.37
|
12,553
|
0.15
|
0.15
|
0.86
|
17
|
|
Year
ended 12/31/20 |
15.93
|
0.13
|
2.03
|
2.16
|
(0.14)
|
(2.83)
|
(2.97)
|
15.12
|
13.82
|
12,904
|
0.18
|
0.18
|
0.86
|
70
|
|
Eleven
months ended 12/31/19 |
16.20
|
0.23
|
2.55
|
2.78
|
(0.22)
|
(2.83)
|
(3.05)
|
15.93
|
17.24
|
21,733
|
0.22(g)
|
0.22(g)
|
1.46(g)
|
31
|
|
Year
ended 01/31/19 |
19.55
|
0.16
|
(2.33)
|
(2.17)
|
(0.23)
|
(0.95)
|
(1.18)
|
16.20
|
(10.50)
|
21,582
|
0.21
|
0.21
|
0.87
|
38
|
|
Year
ended 01/31/18 |
15.67
|
0.13
|
4.23
|
4.36
|
(0.31)
|
(0.17)
|
(0.48)
|
19.55
|
28.04
|
25,773
|
0.22
|
0.23
|
0.72
|
8
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
16.09
|
0.17
|
(3.28)
|
(3.11)
|
(0.19)
|
(0.67)
|
(0.86)
|
12.12
|
(19.38)
|
7
|
0.11
|
0.11
|
1.29
|
27
|
|
Year
ended 12/31/21 |
14.99
|
0.16
|
2.13
|
2.29
|
(0.33)
|
(0.86)
|
(1.19)
|
16.09
|
15.48
|
10
|
0.06
|
0.06
|
0.95
|
17
|
|
Year
ended 12/31/20 |
15.82
|
0.14
|
2.01
|
2.15
|
(0.15)
|
(2.83)
|
(2.98)
|
14.99
|
13.83
|
9
|
0.14
|
0.14
|
0.90
|
70
|
|
Period
ended 12/31/19(h)
|
16.60
|
0.16
|
2.12
|
2.28
|
(0.23)
|
(2.83)
|
(3.06)
|
15.82
|
13.83
|
10
|
0.14(g)
|
0.14(g)
|
1.53(g)
|
31
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
16.09
|
0.19
|
(3.30)
|
(3.11)
|
(0.19)
|
(0.67)
|
(0.86)
|
12.12
|
(19.38)
|
15
|
0.10
|
0.11
|
1.30
|
27
|
|
Year
ended 12/31/21 |
14.99
|
0.16
|
2.13
|
2.29
|
(0.33)
|
(0.86)
|
(1.19)
|
16.09
|
15.48
|
359
|
0.06
|
0.06
|
0.95
|
17
|
|
Year
ended 12/31/20 |
15.82
|
0.14
|
2.01
|
2.15
|
(0.15)
|
(2.83)
|
(2.98)
|
14.99
|
13.87
|
9
|
0.10
|
0.14
|
0.94
|
70
|
|
Period
ended 12/31/19(h)
|
16.60
|
0.17
|
2.12
|
2.29
|
(0.24)
|
(2.83)
|
(3.07)
|
15.82
|
13.90
|
10
|
0.10(g)
|
0.10(g)
|
1.58(g)
|
31
|
|
| ||||||||||||||
|
(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)
|
In
addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of
the underlying funds in which the Fund invests. Because
the
underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees
and expenses incurred indirectly by the Fund will vary.
Estimated
underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the
underlying funds and are deducted from the value
of
the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the
Fund’s total return. Estimated acquired fund fees from
underlying
funds was 0.51%, 0.55% and 0.64% for the years ended December 31, 2022, 2021 and 2020, respectively. |
15 Invesco
Select Risk: High Growth Investor Fund
|
(d)
|
Does
not include indirect expenses from affiliated fund fees and expenses of 0.67%, 0.71% and 0.70% or the eleven months ended December 31,
2019, and for the years ended January 31,
2019
and 2018, respectively. |
|
(e)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(f)
|
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 years ended December 31,
2022,
2021 and 2020, respectively. |
|
(g)
|
Annualized.
|
|
(h)
|
Commencement
date after the close of business on May 24, 2019. |
16 Invesco
Select Risk: High Growth Investor Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
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Invesco
Select Risk: High Growth Investor Fund
SEC 1940 Act file
number: 811-02699 |
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invesco.com/us
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O-OPSGI-PRO-1
|
Prospectus
April
28,
2023
Class:
A (OAMIX), C (OCMIX),
R (ONMIX), S (PXMSX),
Y (OYMIX), R5 (PXMQX),
R6 (PXMMX)
Invesco
Select Risk: Moderate Investor Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission
(CFTC) have not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary
is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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Back
Cover |
Invesco Select
Risk: Moderate Investor Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is to seek total return.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
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Class:
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A
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C
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R
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S
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Y
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R5
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R6
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Maximum
Sales Charge (Load) Imposed
on
Purchases (as a percentage of
offering
price) |
5.50%
|
None
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None
|
None
|
None
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None
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None
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| |||||||
|
Maximum
Deferred Sales Charge (Load)
(as
a percentage of original purchase
price
or redemption proceeds,
whichever
is less) |
None1
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1.00%
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None
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None
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None
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None
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None
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Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 22%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual funds advised by Invesco Advisers, Inc. (Invesco
or the Adviser) and exchange-traded funds (ETFs) and other pooled investment vehicles advised by Invesco Capital Management LLC (Invesco
Capital) or mutual funds, ETFs and other pooled investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco
and Invesco Capital are affiliates of each other as they are both indirect wholly-owned subsidiaries of Invesco Ltd.
The
Fund generally categorizes each underlying fund as an equity, fixed-income,
or alternative fund based on its investment profile. The Fund typically allocates its assets among underlying funds, and within a pre-determined
percentage range for its assets in equity funds, as determined by the Adviser in accordance with its outlook for the economy, the financial
markets and the relative market valuations of the underlying funds. Under normal market conditions, the Adviser selects underlying funds
based on its determination that they could provide total return for the Fund.
The
Fund generally invests between 50% and 70% of its assets in equity
funds. Such funds invest in equity securities of domestic and foreign companies, including small, medium and large market capitalization
companies, and growth and value stocks. Equity securities include common stock, preferred stock, rights and warrants, and securities convertible
into common stock. Foreign equities are securities of issuers outside of the United States, including issuers in emerging or developing
markets i.e., those that are in the early stages of their industrial cycles. Underlying funds investing primarily in real estate securities,
listed infrastructure securities, and master limited partnerships (MLPs) will be deemed to be “equity funds” for purposes
of the Fund’s allocation strategy.
The
Fund generally invests the remainder of its assets in a flexible combination
of fixed-income and alternative funds. Fixed-income funds generally invest in fixed income instruments such as investment-grade debt securities,
below-investment-grade high yield securities (or “junk” bonds), government and government-sponsored securities, corporate
bonds securitized products, and inflation-protected debt securities. Alternative funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment strategies, including primarily through the use of derivatives,
that aim to offer diversification beyond traditional equity and fixed-income securities and may seek to take long and short positions
to manage exposure to certain asset classes. The Fund is not required to invest its assets in any specified percentages of fixed-income
or alternative funds. The Fund does not limit its investment in underlying funds that invest primarily in foreign securities.
The
Fund’s investment in underlying funds is subject to any limitations imposed
by the Investment Company Act of 1940 or any rules thereunder.
1 Invesco Select
Risk: Moderate Investor Fund
The
Fund may temporarily exceed its percentage range for its assets in equity
funds for short periods and may alter the percentage range when it deems appropriate. The Adviser will monitor the markets and allocate
assets among the underlying funds based on changing market or economic conditions and investment opportunities. The Adviser monitors the
underlying fund selections and periodically rebalances the Fund’s investments to bring them back within their asset allocation target
ranges. In response to changing market or economic conditions, the Adviser may change any or all of the underlying funds managed by Invesco
and/or its affiliates, including using funds that may be created in the future, or change the Fund’s asset allocation target ranges
at any time, in each case without prior approval from or notice to shareholders.
The
Fund may invest directly in derivatives to hedge its cash position and
manage the duration of the Fund’s portfolio, including but not limited to futures, total return swaps, and forward contracts. The
Fund may also use other types of derivatives that are consistent with its investment objective and investment strategies. In addition,
the Fund will gain exposure to derivatives through its investments in underlying funds.
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money market mutual funds in the Invesco family of funds. This may also include
shares of funds that provide exposure to inflation protected debt securities and short-term investment grade debt securities. This will
also generally occur at times when there is an inability to immediately invest funds received from purchases of Fund shares or from redemptions
of other investments or to maintain liquidity.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. Because the Fund is a fund of funds, the Fund is subject to the risks associated with the underlying funds in which
it invests. The principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism, economic crisis or adverse investor sentiment
generally. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well,
there can be no assurance that specific investments held by an underlying fund will rise in value.
Fund
of Funds Risk. The Fund’s performance depends on that of
the underlying funds in which it invests. Accordingly, the risks associated with an investment in the Fund include the risks associated
with investments in the underlying funds. The Fund will indirectly pay a proportional share of the fees and expenses of the underlying
funds in which it invests. There are risks that the Fund will vary from its target weightings (if any) in the underlying funds, that the
underlying funds will not achieve their investment objectives, that the underlying funds’ performance may be lower than their represented
asset classes, and that the Fund may withdraw its investments in an underlying fund at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) an
exchange-traded
fund’s shares may trade above or below its net asset value; (2) an active trading market for the exchange-traded fund’s shares
may not develop or be maintained; (3) trading an exchange-traded fund’s shares may be halted by the listing exchange; (4) a passively-managed
exchange-traded fund may not track the performance of the reference asset; and (5) a passively-managed exchange-traded fund may hold troubled
securities. Investment in exchange-traded funds may involve duplication of management fees and certain other expenses, as the Fund or
an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded funds in which it invests. Further,
certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged, which may result in economic leverage,
permitting the Fund or an underlying fund to gain exposure that is greater than would be the case in an unlevered instrument, and potentially
resulting in greater volatility.
Allocation
Risk.
The Fund’s investment performance depends, in part, on how its assets are allocated among the underlying funds or asset classes.
The Adviser’s evaluations and assumptions regarding the asset classes or the underlying funds in which the Fund invests may be incorrect,
causing the Fund to be invested (or not invested) in one or more asset classes or underlying funds at an inopportune time, which could
negatively affect the Fund’s performance.
Investing
in Stocks Risk.
The value of an underlying fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant
short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have
unexpected negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets
may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less
2 Invesco Select
Risk: Moderate Investor Fund
liquid
than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Foreign
Securities Risk.
An underlying fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation
policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk
of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which an underlying fund could lose its
entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign
companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing
and accounting controls, and may therefore be more susceptible to fraud or corruption. There may be less public information available
about foreign companies than U.S. companies, making it difficult to evaluate those foreign companies. Unless an underlying fund has hedged
its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may
cause the value of securities denominated in such foreign currency (or other instruments through which an underlying fund has exposure
to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging
strategies, if used, are not always successful.
Foreign
Government Debt Risk. Investments
in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those
relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment
of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and an underlying
fund may have limited recourse in the event of a default against the defaulting government. Without the approval of debt holders, some
governmental debtors have in the past been able to reschedule or restructure their debt payments or declare moratoria on payments.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede an underlying fund’s
ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change
quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization
of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country,
protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Geographic
Focus Risk.
An underlying fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single
country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore
have
a significant negative impact on an underlying fund’s investment performance.
Momentum
Investing Risk.
In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style
of investing emphasizes investing in securities that have had better recent performance compared to other securities, on the theory that
these securities will continue to increase in value. Momentum investing is subject to the risk that the securities may be more volatile
than the market as a whole. High momentum may also be a sign that the securities’ prices have peaked, and therefore the returns
on securities that previously have exhibited price momentum may be less than returns on other styles of investing. Momentum can turn quickly,
and stocks that previously have exhibited high momentum may not experience continued positive momentum. An underlying fund may experience
significant losses if momentum stops, reverses or otherwise behaves differently than predicted. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment performance of an underlying fund may suffer.
Value
Investing Risk. Value investing entails the risk that if the market
does not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value approach
could also result in fewer investments that increase rapidly during times of market gains and could cause an underlying fund to underperform
funds that use a growth or non-value approach to investing. Value investing has gone in and out of favor during past market cycles and
when value investing is out of favor or when markets are unstable, the securities of value
companies may underperform the securities of growth companies
or the overall stock market.
Growth
Investing Risk.
If a growth company’s earnings or stock price fails to increase as anticipated, or if its business plans do not produce the expected
results, the value of its securities may decline sharply. Growth companies may be newer or smaller companies that may experience greater
stock price fluctuations and risks of loss than larger, more established companies. Newer growth companies tend to retain a large part
of their earnings for research, development or investments in capital assets. Therefore, they may not pay any dividends for some time.
Growth investing has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth
investing is out of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price
and the securities of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may
also be more volatile than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations
and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many
instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially
less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller
companies may be subject to wider price fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable
price when it wants to sell them. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of
3 Invesco Select
Risk: Moderate Investor Fund
time
to realize a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. An underlying
fund’s adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune
time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially
increase an underlying fund’s portfolio turnover rate and transaction costs.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and an underlying fund may be unable to dispose of the securities at a desirable time or price.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities and such securities may be difficult to value and may have
significant volatility.
Municipal
Securities Risk. The
risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the security.
Failure of a municipal security issuer to comply with applicable tax
requirements
may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there could be changes in applicable
tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely
affect the current federal or state tax status of municipal securities.
High
Yield Debt Securities (Junk Bond) Risk.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject an underlying fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities.
Prices of high yield debt securities tend to be very volatile.
REIT
Risk/Real Estate Risk.
Investments in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological
factors that affect property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap
companies, may be more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt
obligations, held by an underlying fund, an underlying fund may acquire real estate directly, which involves additional risks such as
environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Commodity
Risk.
An underlying fund may have investment exposure to the commodities markets and/or a particular sector of the commodities markets, which
may subject an underlying fund to greater volatility than investments in traditional securities, such as stocks and bonds. Volatility
in the commodities markets may be caused by changes in overall market movements, domestic and foreign political and economic events and
policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning interest rates,
domestic and foreign inflation rates, investment and trading activities of mutual funds, hedge funds and commodities funds, and factors
such as drought, floods, weather, livestock disease, embargoes, tariffs and other regulatory developments, or supply and demand disruptions.
Because an underlying fund’s performance may be linked to the performance of volatile commodities, investors should be willing to
assume the risks of potentially significant fluctuations in the value of underlying fund’s shares.
Inflation-Indexed
Securities Risk.
The values of inflation-indexed securities generally fluctuate in response to changes in real interest rates. Because of the inflation-adjustment
feature, these securities typically have lower yields than traditional fixed-rate securities with similar maturities. Normally inflation-indexed
securities will decline in price when real interest rates rise which could cause losses for the Fund or an underlying fund. As a result,
an underlying fund's income from its investments in these securities is likely to fluctuate considerably more than the income distributions
of its investments in more traditional fixed income securities.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received
earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in an underlying fund reinvesting
these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage- and asset-backed securities also
are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing
the price of the mortgage- and asset-backed securities and an underlying fund’s share price to fall. An unexpectedly high rate of
defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities and will result in losses
to an
4 Invesco Select
Risk: Moderate Investor Fund
underlying
fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of securities and an
underlying fund may be unable to sell these securities at the time or price it desires. During periods of market stress or high redemptions,
an underlying fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid privately-issued
mortgage-backed securities and asset-backed securities can become illiquid during periods of market stress. Privately issued mortgage-related
securities are not subject to the same underwriting requirements as those with government or government-sponsored entity guarantees and,
therefore, mortgage loans underlying privately issued mortgage-related securities may have less favorable collateral, credit risk, liquidity
risk or other underwriting characteristics, and wider variances in interest rate, term, size, purpose and borrower characteristics. An
underlying fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories
or with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include subprime
mortgages.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market
anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if an underlying fund
invests in CLOs that hold loans of uncreditworthy borrowers or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
Variable
or Floating Rate Instruments.
Variable or floating rate instruments are securities that provide for a periodic adjustment in the interest rate paid on the obligation.
The interest rates for securities with variable interest rates are readjusted on set dates (such as the last day of the month or calendar
quarter) and the interest rates for securities with floating rates are reset whenever a specified interest rate change occurs. Variable
or floating interest rates generally reduce changes in the market price of securities from their original purchase price because, upon
readjustment, such rates approximate market rates. Accordingly, as market interest rates decrease or increase, the potential for capital
appreciation or depreciation is less for variable or floating rate securities than for fixed rate obligations.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. Regulators and financial industry working groups
in several jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to replace
LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the Secured
Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other interbank
offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which underlying fund invests that utilize ARRs will be
similar to or produce the
same
value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators
have generally prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue
to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered
into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments
when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held
by an underlying fund could result in losses to an underlying fund.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of an underlying
fund’s securities become illiquid, an underlying fund may not be able to timely pay redemption proceeds and may need to sell securities
at significantly reduced prices.
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment strategies will yield uncorrelated performance under all market conditions. In addition, the particular mix of
alternative investments in an underlying fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to
the risk that its alternative investments may undergo a correlation shift, resulting in returns that are correlated with the broader market
and/or with an underlying fund’s other alternative investments.
Rights
and Warrants Risk.
Warrants may be significantly less valuable or worthless on their expiration date and may also be postponed or terminated early, resulting
in a partial or total loss. Rights are similar to warrants, but normally have a short duration and are distributed directly by the issuer
to its shareholders. Rights and warrants have no voting rights, receive no dividends and have no rights with respect to the assets of
the issuer. Warrants and rights are highly volatile and, therefore, more susceptible to sharp declines in value than the underlying security
might be. The market for rights or warrants may be very limited and it may be difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk. The
market values of convertible securities are affected by market interest rates, the risk of actual issuer default on interest or principal
payments and the value of the underlying common stock into which the convertible security may be converted. Additionally, a convertible
security is subject to the same types of market and issuer risks that apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events,
and, as a result, are subject to an increased risk of loss. Convertible securities may be rated below investment grade and therefore considered
to have more speculative characteristics and greater susceptibility to default or decline in market value than investment grade securities.
5 Invesco Select
Risk: Moderate Investor Fund
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay an underlying fund or the Fund
the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment
up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of
the underlying asset could result in an underlying fund or the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset, which may make the underlying fund’s or the Fund’s returns
more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the
underlying fund or the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be
more acute under adverse market conditions, during which the underlying fund or the Fund may be most in need of liquidating its derivative
positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact
the underlying fund’s or the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always
be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the
expected benefits, particularly during adverse market conditions.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact an underlying
fund’s operations, universe of potential investment options, and return potential.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. Because the investment process of the Fund relies heavily on its
asset allocation process, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on the Fund’s net asset value. Similarly, because the investment processes of certain underlying funds rely heavily on their
security selection processes, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on certain underlying funds’ net asset values. Additionally, legislative, regulatory, or tax developments may adversely affect
management of the Fund and underlying funds and, therefore, their abilities to achieve their investment objectives.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The Fund has adopted the performance of the
Oppenheimer Portfolio Series: Moderate Investor Fund (the predecessor fund) as the result of a reorganization consummated after the close
of business on May 24, 2019 (the “Reorganization”). Prior to the Reorganization, the Fund had not yet commenced operations.
The
bar chart shows changes in the performance of the predecessor fund and the Fund from year to year as of December 31. The performance table
compares the
predecessor
fund’s and the Fund’s performance to that of a broad measure of market performance and an additional index with characteristics
relevant to the Fund.
The
Fund’s (and the predecessor fund’s) past performance (before and after
taxes) is not necessarily an indication of how the Fund will perform in the future. The returns shown for periods ending
on or prior to May 24, 2019, are those of the Class A, Class C, Class R and Class Y shares of the predecessor fund. Class A, Class C,
Class R and Class Y shares of the predecessor fund were reorganized into Class A, Class C, Class R and Class Y shares, respectively, of
the Fund after the close of business on May 24, 2019. Class A, Class C, Class R and Class Y shares’ returns of the Fund will be
different from the returns of the predecessor fund as they have different expenses. Performance for Class A shares has been restated to
reflect the Fund’s applicable sales charge.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
15.43%
|
|
Worst
Quarter |
March
31, 2020 |
-17.89%
|
6 Invesco Select
Risk: Moderate Investor Fund
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
4/5/2005
|
-22.28%
|
1.31%
|
4.42%
|
|
Return
After Taxes on Distributions |
|
-23.18
|
-0.75
|
3.08
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
-12.76
|
0.69
|
3.23
|
|
| ||||
|
Class
C |
4/5/2005
|
-19.17
|
1.67
|
4.37
|
|
| ||||
|
Class
R |
4/5/2005
|
-17.94
|
2.20
|
4.75
|
|
| ||||
|
Class
S |
5/15/2020
|
-17.64
|
2.541
|
5.051
|
|
| ||||
|
Class
Y |
4/5/2005
|
-17.54
|
2.70
|
5.28
|
|
| ||||
|
Class
R5 |
5/24/2019
|
-17.45
|
2.722
|
5.142
|
|
| ||||
|
Class
R6 |
5/24/2019
|
-17.45
|
2.732
|
5.152
|
|
| ||||
|
Custom
Invesco Select Risk: Moderate Investor
Index
(60% MSCI ACWI (Net) (reflects reinvested
dividends
net of withholding taxes, but reflects no
deduction
for fees, expenses or other taxes) and
40%
Bloomberg Global Aggregate USD Hedged
Index
(reflects
no deduction for fees, expenses or
taxes))
|
|
-15.22
|
3.64
|
5.70
|
|
| ||||
|
Bloomberg
Global Aggregate USD Hedged Index
(reflects
no deduction for fees, expenses or taxes) |
|
-11.22
|
0.36
|
1.70
|
|
| ||||
|
MSCI
All Country World Index (Net) (reflects
reinvested
dividends net of withholding taxes, but
reflects
no deduction for fees, expenses or other
taxes)
|
|
-18.36
|
5.23
|
7.98
|
|
| ||||
1
Performance shown prior to the inception
date is that of the Fund's and predecessor fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class.
Class A shares' performance reflects any applicable fee waivers and/or expense reimbursements. Although invested in the same portfolio
of securities, Class S shares' returns of the Fund will be different from Class A shares' returns of the Fund and the predecessor fund
as they have different expenses.
2
Performance shown prior to the inception
date is that of the predecessor fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although
invested in the same portfolio of securities, Class R5 and Class R6 shares' returns of the Fund will be different from Class A shares'
returns of the predecessor fund as they have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Jeffrey
Bennett, CFA |
Portfolio
Manager |
2019
(predecessor fund 2018) |
|
| ||
|
Alessio
de Longis, CFA |
Portfolio
Manager |
2023
|
|
| ||
|
Scott
Hixon, CFA |
Portfolio
Manager |
2023
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
There
are no minimum investments for Class S shares for fund accounts.
The minimum investments for Class A, C, R and Y shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek total return. The Fund’s investment objective may be changed by the Board of Trustees
(the Board) without shareholder approval.
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual
funds advised by Invesco and ETFs and other pooled investment
7 Invesco Select
Risk: Moderate Investor Fund
vehicles
advised by Invesco Capital or mutual funds, ETFs and other pooled investment vehicles advised by unaffiliated advisers (the underlying
funds). Invesco and Invesco Capital are affiliates of each other as they are both indirect wholly-owned subsidiaries of Invesco
Ltd.
The
Fund generally categorizes each underlying fund as an equity, fixed-income,
or alternative fund based on its investment profile. The Fund typically allocates its assets among underlying funds, and within a pre-determined
percentage range for its assets in equity funds, as determined by the Adviser in accordance with its outlook for the economy, the financial
markets and the relative market valuations of the underlying funds. Under normal market conditions, the Adviser selects underlying
funds based on its determination that they could provide total return for the Fund.
The
Fund generally invests between 50% and 70% of its assets in equity
funds. Such funds invest in equity securities of domestic and foreign companies, including small, medium and large market capitalization
companies, and growth and value stocks. Equity securities include common stock, preferred stock, rights and warrants, and securities convertible
into common stock. Foreign equities are securities of issuers outside of the United States, including issuers in emerging or developing
markets i.e., those that are in the early stages of their industrial cycles. Underlying funds investing primarily in real estate securities,
listed infrastructure securities, and master limited partnerships (MLPs) will be deemed to be “equity funds” for purposes
of the Fund’s allocation strategy.
The
Fund generally invests the remainder of its assets in a flexible combination
of fixed-income and alternative funds. Fixed-income funds generally invest in fixed income instruments such as investment-grade debt securities,
below-investment-grade high yield securities (or “junk” bonds), government and government-sponsored securities, corporate
bonds securitized products, and inflation-protected debt securities. Alternative funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment strategies, including primarily through the use of derivatives,
that aim to offer diversification beyond traditional equity and fixed-income securities and may seek to take long and short positions
to manage exposure to certain asset classes. The Fund is not required to invest its assets in any specified percentages of fixed-income
or alternative funds. The Fund does not limit its investment in underlying funds that invest primarily in foreign securities.
The
Fund’s investment in underlying funds is subject to any limitations imposed
by the Investment Company Act of 1940 or any rules thereunder.
The
Fund may temporarily exceed its percentage range for its assets in equity
funds for short periods and may alter the percentage range when it deems appropriate. The Adviser will monitor the markets and allocate
assets among the underlying funds based on changing market or economic conditions and investment opportunities. The Adviser monitors the
underlying fund selections and periodically rebalances the Fund’s investments to bring them back within their asset allocation target
ranges. In response to changing market or economic conditions, the Adviser may change any or all of the underlying funds managed by Invesco
and/or its affiliates, including using funds that may be created in the future, or change the Fund’s asset allocation target
ranges at any time, in each case without prior approval from or notice to shareholders.
The
Fund may use derivatives to hedge its cash position and manage the
duration of the Fund’s portfolio, including but not limited to futures, total return swaps, and forward contracts. The Fund may
also use other types of derivatives that are consistent with its investment objective and investment strategies. In addition, the Fund
will gain exposure to derivatives through its investments in underlying funds.
With
respect to derivatives, references to the “underlying funds” also include
the Fund and references to the “Fund” also include the underlying funds. The underlying funds can invest in a number of different
types of “derivatives” instruments. A derivative is an instrument whose value depends on (or is derived from) the value of
an underlying security, asset, interest rate, index or currency. Derivatives may allow an underlying fund to increase or decrease its
exposure to certain markets or risks. Some
underlying
funds may use derivatives to seek income or capital gain or to hedge against the risks of other investments. Options, futures, forward
contracts and swaps are some of the types of derivatives the underlying funds can use. The underlying funds may also use other types of
derivatives that are consistent with their investment strategies or for hedging purposes. The underlying funds are not required to use
derivatives in seeking their investment objectives or for hedging and might not do so. There is no target range for indirect investment
in derivatives at the Fund level.
The
Fund may hold a portion of its assets in cash, money market securities
or other similar, liquid investments, including in shares of money market mutual funds in the Invesco family of funds. This may also include
shares of funds that provide exposure to inflation protected debt securities and short-term investment grade debt securities. This will
also generally occur at times when there is an inability to immediately invest funds received from purchases of Fund shares or from redemptions
of other investments or to maintain liquidity.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
the Fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector,
such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters, widespread
disease or other public health issues, war, military conflict, acts of terrorism, economic crisis or other events may have a significant
impact on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances
may also impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in
the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific
investments held by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO) member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine
(and the potential for further sanctions in response to Russia’s continued military activity) may escalate. These and other corresponding
events, have had, and could continue to have, severe negative effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall uncertainty. The negative impacts may be particularly acute in certain sectors including,
but not limited to, energy and financials. Russia
8 Invesco Select
Risk: Moderate Investor Fund
may
take additional countermeasures or retaliatory actions (including cyberattacks), which could exacerbate negative consequences on global
financial markets. The duration of the conflict and corresponding sanctions and related events cannot be predicted. The foregoing may
result in a negative impact on Fund performance and the value of an investment in the Fund, even beyond any direct investment exposure
the Fund may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Fund
of Funds Risk.
The Fund’s performance depends on that of the underlying funds in which it invests. Accordingly, the risks associated with an investment
in the Fund include the risks associated with investments in the underlying funds. The Fund will indirectly pay a proportional share of
the fees and expenses of the underlying funds in which it invests. There is a risk that the Fund will vary from its target weightings
(if any) in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will
achieve their investment objectives, and their performance may be lower than their represented asset classes. Underlying Funds that are
not affiliated with the Fund may change their portfolio managers, investment objectives, investment strategies, policies or practices
without the approval of the Fund, which may cause the Fund to withdraw its investments therein at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) the market price of an exchange-traded fund’s shares may trade above or below
its net asset value; (2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading
an exchange-traded fund’s shares may be halted if the listing exchange’s officials deem such action appropriate; (4) a passively-managed
exchange-traded fund may not accurately track the performance of the reference asset; and (5) a passively-managed exchange-traded fund
would not necessarily sell a security because the issuer of the security was in financial trouble unless the security is removed from
the index that the exchange-traded fund seeks to track. Investment in exchange-traded funds may involve duplication of management fees
and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded
funds in which it invests. Further, certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged. Investing
in leveraged exchange-traded funds may result in economic leverage, which does not result in the possibility of the Fund or an underlying
fund incurring obligations beyond its investments, but nonetheless permits the Fund or an underlying fund to gain exposure that is greater
than would be the case in an unlevered instrument, which can result in greater volatility.
Allocation
Risk. The Fund’s investment performance depends, in part,
on how its assets are allocated among the underlying funds or asset classes. The Adviser’s evaluations and assumptions regarding
the asset classes or the underlying funds in which the Fund invests may be incorrect, causing the Fund to be invested (or not invested)
in one or more asset
classes
or underlying funds at an inopportune time. The Adviser’s allocation of the Fund’s assets among asset classes and underlying
funds may therefore not produce the desired results and could cause the Fund to perform poorly or underperform the Fund’s benchmark
and other available funds.
◾
Affiliated
Portfolio Risk. In managing the Fund, the Adviser will have authority
to select and substitute underlying funds. The Adviser may be subject to potential conflicts of interest in selecting underlying funds
because the fees paid to the Adviser or its affiliates by some underlying funds for advisory services are higher than the fees paid by
other underlying funds. In addition, the Fund's portfolio managers may also serve as portfolio managers of the underlying funds.
However, the Adviser monitors the investment process to seek to
identify, address and resolve any potential issues and has adopted certain compliance procedures which are designed to address these types
of conflicts.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of an underlying fund’s portfolio may be affected by changes in
the stock markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets
may experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-sized companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the
9 Invesco Select
Risk: Moderate Investor Fund
issuer
in a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s
capital structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred
securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s
financial condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Foreign
Securities Risk.
The value of an underlying fund's foreign investments may be adversely affected by political and social instability in the home countries
of the issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which an underlying fund could lose its entire investments in a certain market) and the possible adoption of foreign
governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S.
companies, including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud
or corruption. Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies
making it more difficult for an underlying fund’s adviser to evaluate those companies. The laws of certain countries may put limits
on an underlying fund’s ability to recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security,
or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due
to the size of the market or other factors. Changes in political and economic factors in one country or region could adversely affect
conditions in another country or region. Investments in foreign securities may also expose an underlying fund to time-zone arbitrage risk.
At times, an underlying fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse
events that occur in that country or region. Unless an underlying fund has hedged its foreign currency exposure, foreign securities risk
also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign
currency (or other instruments through which an underlying fund has exposure to foreign currencies) to decline in value. Currency exchange
rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. For instance,
currency forward contracts, if used, could reduce performance if there are unanticipated changes in currency exchange rates.
Foreign
Government Debt Risk. Investments
in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those
relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment
of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and an underlying
fund may have limited recourse in the event of a default against the defaulting government. A foreign government debtor’s willingness
or ability to repay principal and pay interest in a timely manner may be affected by, among other factors, its cash flow situation, the
extent of its foreign currency reserves, the availability of sufficient foreign exchange, the relative size of the debt burden, the foreign
government debtor’s policy toward its principal international lenders and local political constraints. Certain issuers of foreign
government debt may be dependent on disbursements from foreign governments, multinational agencies and other entities to reduce principal
and interest arrearages on their debt. Without the approval of debt holders, some governmental debtors have in the past been able to reschedule
or restructure their debt payments or declare moratoria on payments.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting
in greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede an underlying fund’s ability to evaluate such companies. In addition, certain emerging market countries
may impose material limitations on Public Company Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities,
which can hinder the PCAOB’s ability to engage in independent oversight or inspection of accounting firms located in or operating
in certain emerging markets. There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market countries
may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries have been engaged in programs to sell all or part of their interests
in government-owned or controlled enterprises. However, in certain emerging market countries, the ability of foreign entities to participate
in privatization programs may be limited by local law. There can be no assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Geographic
Focus Risk. An underlying fund may from time to time have a substantial
amount of its assets invested in securities of issuers
10 Invesco Select
Risk: Moderate Investor Fund
located
in a single country or a limited number of countries. If an underlying fund focuses its investments in this manner, adverse economic,
political or social conditions in those countries may have a significant negative impact on an underlying fund’s investment performance.
This risk is heightened if an underlying fund focuses its investments in emerging market countries or developed countries prone to periods
of instability.
Momentum
Investing Risk.
In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style
of investing emphasizes investing in securities that have had better recent performance compared to other securities, on the theory that
these securities will continue to increase in value. Momentum investing is subject to the risk that the securities may be more volatile
than the market as a whole. High momentum may also be a sign that the securities’ prices have peaked, and therefore the returns
on securities that previously have exhibited price momentum may be less than returns on other styles of investing. Momentum can turn quickly,
and stocks that previously have exhibited high momentum may not experience continued positive momentum. An underlying fund may experience
significant losses if momentum stops, reverses or otherwise behaves differently than predicted. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment performance of an underlying fund may suffer.
Value
Investing Risk. Value investing entails the risk that if the market
does not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value investing
approach could also lead to acquiring fewer securities that might experience rapid price increases during times of market advances. This
could cause the investments to underperform strategies that seek capital appreciation by employing only a growth or other non-value approach.
Value investing has also gone in and out of favor during past market cycles and is likely to continue to do so. During periods when value
investing is out of favor or when markets are unstable, the securities of value companies may underperform the securities of growth companies
or the overall stock market.
Growth
Investing Risk. Growth companies are companies whose earnings
and stock prices are expected to grow at a faster rate than the overall market. If a growth company’s earnings or stock price fails
to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline sharply.
Growth companies can be new or established companies that may be entering a growth cycle in their business and therefore may experience
greater stock price fluctuations and risks of loss than larger, more established companies. Their anticipated growth may come from developing
new products or services or from expanding into new or growing markets. Growth companies may be applying new technologies, new or improved
distribution methods or new business models that could enable them to capture an important or dominant market position. They may have
a special area of expertise or the ability to take advantage of changes in demographic or other factors in a more profitable way. Newer
growth companies generally tend to invest a large part of their earnings in research, development or capital assets. Although newer growth
companies may not pay any dividends for some time, their stocks may be valued because of their potential for price increases. Growth investing
has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth investing is out
of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price and the securities
of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may also be more volatile
than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no
operating
history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial
resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established
companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt and erratic
price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter or
on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of larger
companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price fluctuations
and it might be harder for an underlying fund to dispose of its holdings at an acceptable price when it wants to sell them. In addition,
investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities (this is
sometimes referred to as “price arbitrage”), which could interfere with the efficient management of an underlying fund. Since
small- and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for
some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a
small- or mid-cap company, if any gain is realized at all. The relative sizes of companies may change over time as the securities market
changes, and an underlying fund is not required to sell the securities of companies whose market capitalizations have grown or decreased
due to market fluctuations.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. If an issuer seeks to restructure the terms of its borrowings
or an underlying fund is required to seek recovery upon a default in the payment of interest or the repayment of principal, an underlying
fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s perception of such strength or
in the credit rating of the issuer or the security may affect the value of debt securities. An underlying fund’s adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to
11 Invesco Select
Risk: Moderate Investor Fund
heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central
bank policies could
also result in higher than normal redemptions by shareholders, which could potentially increase an underlying fund’s portfolio turnover
rate and transaction costs and potentially lower an underlying fund’s performance returns.
Rule
144A Securities and Other Exempt Securities Risk. An underlying
fund may invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption
from registration under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically
may be resold only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers,
or in limited quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration.
Although such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company
Act of 1940, as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities
at a particular time, an underlying fund may have difficulty selling such securities at a desirable time or price. As a result, an underlying
fund’s investment in such securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities
may require their qualified institutional buyers (such as an underlying fund) to keep certain offering information confidential, which
could adversely affect the ability of an underlying fund to sell such securities.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities. Also, restricted securities may be difficult to value
because market quotations may not be readily available, and the securities may have significant volatility. In addition, an underlying
fund may get only limited information about the issuer of a restricted security and therefore may be less able to predict a loss.
Municipal
Securities Risk.
The risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the security.
Municipal obligations may be more susceptible to downgrades or defaults during recessions or similar periods of economic stress. Municipal
securities structured as revenue bonds are generally not backed by the taxing power of the issuing municipality but rather the revenue
from the particular project or entity for which the bonds were issued. If the Internal Revenue Service determines that an issuer of a
municipal security has not complied with applicable tax requirements, interest from the security could be treated as taxable, which could
result in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce
or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state
tax status of municipal securities.
High
Yield Debt Securities (Junk Bond) Risk.
An underlying fund’s investments in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated
securities will subject an underlying fund to substantial risk of loss. These securities are considered to be speculative with respect
to the issuer’s ability to pay interest and principal when due and are more susceptible to default or decline in market value due
to adverse economic, regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield
debt securities tend to be very volatile. These securities are less liquid than
investment
grade debt securities and may be difficult to sell at a desirable time or price, particularly in times of negative sentiment toward high
yield securities.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Real estate companies, including REITs or similar structures, tend to be small- and mid-cap
companies and their shares may be more volatile and less liquid than larger companies. The value of investments in real estate related
companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial covenants
related thereto, whether the company carries adequate insurance and environmental factors. If a real estate related company defaults on
certain types of debt obligations, held by an underlying fund, an underlying fund may acquire real estate directly, which involves additional
risks such as environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Commodity
Risk.
An underlying fund may have investment exposure to the commodities markets and/or a particular sector of the commodities markets, which
may subject an underlying fund to greater volatility than investments in traditional securities, such as stocks and bonds. The commodities
markets may fluctuate widely based on a variety of factors, including changes in overall market movements, domestic and foreign political
and economic events and policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning
interest rates, domestic and foreign inflation rates and investment and trading activities of mutual funds, hedge funds and commodities
funds. Prices of various commodities may also be affected by factors such as drought, floods, weather, livestock disease, embargoes, tariffs
and other regulatory developments. The prices of commodities can also fluctuate widely due to supply and demand disruptions in major producing
or consuming regions and changes in transportation, handling and storage costs. Certain commodities may be produced in a limited number
of countries and may be controlled by a small number of producers or groups of producers. As a result, political, economic and supply
related events in such countries could have a disproportionate impact on the prices of such commodities. Because an underlying fund’s
performance may be linked to the performance of volatile commodities, investors should be willing to assume the risks of potentially significant
fluctuations in the value of an underlying fund’s shares.
Inflation-Indexed
Securities Risk.
Inflation-indexed securities typically provide principal and interest payments that are adjusted over time to reflect a rise (inflation)
or a drop (deflation) in the general price level for goods and services. Because of the inflation-adjustment feature, these securities
typically have lower yields than traditional fixed-rate securities with similar maturities. The values of inflation-indexed securities
generally fluctuate in response to changes in real interest rates. Real interest rates are tied to the relationship between nominal interest
rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading
to a decrease in value of inflation-indexed securities, which could cause losses for the Fund or an underlying fund. Conversely, if inflation
rises at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of inflation-indexed
securities. An underlying fund's income from its investments in inflation-indexed securities is likely to fluctuate considerably more
than the income distributions of its investments in more traditional fixed income securities.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
12 Invesco Select
Risk: Moderate Investor Fund
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, differ from
conventional debt securities because principal is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed
securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received earlier or later than
expected due to changes in prepayment rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a
result, an underlying fund may reinvest these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage-
and asset-backed securities also are subject to extension risk. An unexpected rise in interest rates could reduce the rate of prepayments
and extend the life of the mortgage- and asset-backed securities, causing the price of the mortgage- and asset-backed securities and an
underlying fund’s share price to fall and would make the mortgage- and asset-backed securities more sensitive to interest rate changes.
An unexpectedly high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities
and will result in losses to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid
than other types of securities and an underlying fund may be unable to sell these securities at the time or price it desires. During periods
of market stress or high redemptions, an underlying fund may be forced to sell these securities at significantly reduced prices, resulting
in losses. Liquid privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods of market
stress. An underlying fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened
credit histories or with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools
that include subprime mortgages. Privately issued mortgage-related securities are not subject to the same underwriting requirements
for the underlying mortgages that are applicable to those mortgage-related securities that have government or government-sponsored entity
guarantees. As a result, the mortgage loans underlying privately issued mortgage-related securities may, and frequently do, have less
favorable collateral, credit risk, liquidity risk or other underwriting characteristics than government or government-sponsored mortgage-related
securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market
anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if an underlying fund
invests in CLOs that hold loans of uncreditworthy borrowers or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
Variable
or Floating Rate Instruments.
Variable or floating rate instruments are securities that provide for a periodic adjustment in the interest rate paid on the obligation.
The interest rates for securities with variable interest rates are readjusted on set dates (such as the last day of the month or calendar
quarter) and the interest rates for securities with floating rates are reset whenever a specified interest rate change occurs. Variable
or floating interest rates generally reduce changes in the market price of securities from their original purchase price because, upon
readjustment, such rates approximate market rates. Accordingly, as market interest rates decrease or increase, the potential for capital
appreciation or depreciation is less for variable or floating rate securities than for fixed rate obligations.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate
calculations.
LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured
basis. In the years following the 2008 financial crisis, the integrity of LIBOR was increasingly questioned because several banks contributing
to its calculation were accused of rate manipulation and because of a general contraction in the unsecured interbank lending market. As
a result, regulators and financial industry working groups in several jurisdictions have worked over the past several years to identify
alternative reference rates (“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. For example, the
Federal Reserve Bank of New York has identified the Secured Overnight Financing Rate (“SOFR”) as the intended replacement
to USD LIBOR and foreign regulators have proposed other interbank offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which an underlying fund invests that utilize ARRs will
be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
Additionally, although regulators have generally prohibited banking institutions from entering into new contracts that reference those
USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and
implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy”
USD LIBOR instruments held by an underlying fund could result in losses to an underlying fund.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries. Information about the Fund’s investment in a market sector or group of industries is available in its annual
and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the SEC.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is
privately placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during
periods of market stress. If a significant amount of an underlying fund’s securities become illiquid, an underlying fund may not
be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Alternative
Investment Strategies Risk.
An underlying fund utilizes alternative investment strategies, which are strategies that the portfolio manager expects to result in investment
performance that does not correlate with the performance of traditional asset classes, such as equity and fixed-income investments. An
underlying fund also seeks to utilize a diverse mix of alternative investment strategies, in the hope that individual strategies yield
low performance correlation to other alternative investment strategies used by an underlying fund. However, alternative investments may
be more volatile or illiquid, particularly during periods of market instability, and an underlying fund cannot guarantee that diverse
alternative investment
13 Invesco Select
Risk: Moderate Investor Fund
strategies
will yield uncorrelated performance under all market conditions. In addition, the particular mix of alternative investments in an underlying
fund’s portfolio may not be sufficiently diversified. An underlying fund is subject to the risk that its alternative investments
may undergo a correlation shift, resulting in returns that are correlated with the broader market and/or with an underlying fund’s
other alternative investments.
Rights
and Warrants Risk.
Rights and warrants may be purchased directly or acquired as part of other securities. Warrants are options to purchase equity securities
at a specific price during a specific period of time. The price of a warrant does not necessarily move parallel to, and is generally more
volatile than, the price of the underlying security. Warrants may be significantly less valuable or worthless on their expiration date
and may also be postponed or terminated early, resulting in a partial or total loss. Rights are similar to warrants, but normally have
a short duration and are distributed directly by the issuer to its shareholders. Rights and warrants have no voting rights, receive no
dividends and have no rights with respect to the assets of the issuer. Warrants and rights are highly volatile and, therefore, more susceptible
to sharp declines in value than the underlying security might be. The market for rights or warrants may be very limited and it may be
difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk.
The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the
value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be
able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or
the market’s perception of the issuer’s creditworthiness. Convertible securities can be converted into or exchanged for a
set amount of common stock of an issuer within a particular period of time at a specified price or according to a price formula. Convertible
debt securities pay interest and convertible preferred stocks pay dividends until they mature or are converted, exchanged or redeemed.
Some convertible debt securities may be considered “equity equivalents” because of the feature that makes them convertible
into common stock. Since a convertible security derives a portion of its value from the common stock into which it may be converted, a
convertible security is also subject to the same types of market and issuer risks that
apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events.
These convertible securities are subject to an increased risk of loss and are generally subordinate in rank to other debt obligations
of the issuer. Convertible securities may be rated below investment grade and therefore considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between an underlying fund and a counterparty. When an underlying fund is owed money on an OTC derivative, an underlying fund
is dependent on the counterparty to pay or, in some cases, deliver the underlying asset, unless an underlying fund can otherwise sell
its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers
and their creditworthiness (and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally.
In addition, in the event that a counterparty becomes bankrupt or insolvent, an underlying fund’s ability to recover the collateral
that an
underlying
fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange, an underlying
fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a guarantor for each contractual
obligation under such derivatives) for payment on derivative instruments for which an underlying fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in an underlying fund sustaining
a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have
the potential for unlimited loss, regardless
of the size of an underlying fund’s initial investment. Leverage may therefore make
an underlying fund’s returns more volatile
and increase the risk of loss. In certain market conditions, losses
on derivative instruments can grow larger while the value of an underlying fund’s other assets fall, resulting in an underlying
fund’s derivative positions becoming a larger percentage of an underlying fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional investments and an underlying
fund may be unable to sell or exit its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which an underlying fund may be most in need of liquidating its derivative positions. To the extent that an underlying
fund is unable to exit a derivative position because of market illiquidity, an underlying fund may not be able to prevent further losses
of value in its derivatives holdings and the liquidity of an underlying fund and its ability to meet redemption requests may be impaired
to the extent that a substantial portion of an underlying fund’s otherwise liquid assets must be used as margin. Another consequence
of illiquidity is that an underlying fund may be required to hold a derivative instrument to maturity and take or make delivery of the
underlying asset that an underlying fund’s adviser would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency
contracts are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency
movements will not be accurately predicted or do not correspond accurately to changes in the value of an underlying fund's holdings, which
could result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated
changes in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of
the currency increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Forward
Contracts Risk. The projection of short-term currency market movements
is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. The precise matching of the
amounts under forward contracts and the value of the securities involved generally will not be possible because the future value of securities
denominated in foreign currencies will change as a consequence of market movements between the date the forward contract is entered into
and the date it is sold. Investments in forward contracts involve the risk that anticipated
14 Invesco Select
Risk: Moderate Investor Fund
currency
movements will not be accurately predicted, causing an underlying fund to sustain losses on these contracts and to pay additional transaction
costs.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. An underlying fund may be disadvantaged if it is prohibited from executing a trade outside the daily
permissible price movement.
◾
Options
Risk. If an underlying fund sells a put option, there is a risk
that an underlying fund may be required to buy the underlying investment at a disadvantageous price. If an underlying fund sells a call
option, there is a risk that an underlying fund may be required to sell the underlying investment at a disadvantageous price. If an underlying
fund sells a call option on an investment that an underlying fund owns (a “covered call”) and the investment has increased
in value when the option is exercised, an underlying fund will be required to sell the investment at the call price and will not be able
to realize any of the investment’s value above the call price. Options may involve economic leverage, which could result in greater
price volatility than other investments.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for an underlying fund. Swap agreements are privately negotiated in the over-the-counter
market and may be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following
execution of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and an underlying
fund faces the central clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing
house.
◾
Total
Return Swaps Risk. In a total return swap transaction, one party
agrees to pay the other party an amount equal to the total return on a defined underlying asset or a non-asset reference during a specified
period of time. The underlying asset might be a security or asset or basket of securities or assets or a non-asset reference such as a
securities or other type of index. In return, the other party would make periodic payments based on a fixed or variable interest rate
or on the total return from a different underlying asset or non-asset reference. Total return swaps could result in losses if the
underlying asset or reference does not perform as anticipated. Total return swaps can have the potential for unlimited losses. They are
also subject to counterparty risk. If the counterparty fails to meet its obligations, an underlying fund may lose money.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of an underlying fund’s taxable income or gains, and may limit or prevent an underlying fund from using
certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to
implement or require an underlying fund to change its investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that an underlying fund uses derivatives for hedging or to gain or limit exposure to a particular market or
market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the
instrument
being hedged or the relevant market or market segment, in which case an underlying fund may not realize the intended benefits. There is
also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. An underlying fund’s use of derivatives may be limited by the requirements for taxation of an underlying fund as a regulated
investment company.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan or other
legislation aimed at addressing financial or economic conditions, the threat of a federal government shutdown, and threats not to increase
or suspend the federal government’s debt limit, may affect investor and consumer confidence, increase volatility in the financial
markets, perhaps suddenly and to a significant degree, result in higher interest rates, and even raise concerns about the U.S. government’s
credit rating and ability to service its debt. Such changes and events may adversely impact an underlying fund’s operations, universe
of potential investment options, and return potential.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. There can be no guarantee that the Fund’s Adviser’s
and certain underlying funds’ advisers' investment techniques or investment decisions will produce the desired results. Because
the investment process of the Fund relies heavily on its asset allocation process, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on the Fund’s net asset value. Similarly, because the investment
processes of certain underlying funds rely heavily on their security selection processes, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on certain underlying funds’ net asset values. Additionally,
legislative, regulatory, or tax developments may adversely affect management of the Fund and underlying funds and, therefore, their abilities
to achieve their investment objectives.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The
Adviser, as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with
certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to
provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
15 Invesco Select
Risk: Moderate Investor Fund
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Regulation
under the Commodity Exchange Act
The
Adviser is registered as a “commodity pool operator” (CPO) under the Commodity Exchange Act and the rules of the CFTC and
is subject to CFTC regulation with respect to the Fund. The CFTC has adopted rules regarding the disclosure, reporting and recordkeeping
requirements that apply with respect to the Fund as a result of the Adviser’s registration as a CPO. Generally, these rules allow
for substituted compliance with CFTC disclosure and shareholder reporting requirements, based on the Adviser’s compliance with comparable
SEC requirements. This means that for most of the CFTC’s disclosure and shareholder reporting requirements applicable to the Adviser
as the Fund’s CPO, the Adviser’s compliance with SEC disclosure and shareholder reporting requirements will be deemed to fulfill
the Adviser’s CFTC compliance obligations. However, as a result of CFTC regulation with respect to the Fund, the Fund may incur
additional compliance and other expenses. The Adviser is also registered as a “commodity trading advisor” (CTA) but, with
respect to the Fund, relies on an exemption from CTA regulation available for a CTA that also serves as the Fund’s CPO.
Adviser
Compensation
The
Adviser does not receive a management fee from the Fund.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for determining the asset class allocation, underlying fund selections and
target weightings for the Fund:
◾
Jeffrey
Bennett, CFA, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Mr. Bennett managed the predecessor fund since 2018 and was associated
with OppenheimerFunds, a global asset management firm, since 2016.
◾
Alessio
de Longis, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 2019. Prior to joining Invesco, Mr. de Longis was associated with OppenheimerFunds, a global asset management firm, since 2004.
◾
Scott
Hixon, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 1994.
The
portfolio managers are assisted by investment professionals from the
Invesco Investment Solutions Team. Members of the team may change from time to time.
The
underlying funds are managed by portfolio managers.
More
information on the Fund’s portfolio managers and the portfolio managers
managing the affiliated underlying funds may be found at www.invesco.com/us. The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category VI Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
16 Invesco Select
Risk: Moderate Investor Fund
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the class
of shares, and the eleven-month period ended December 31, 2019. The financial highlights table is intended to help you understand the
Fund’s and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund
share. Class S shares had not commenced operations prior to the Fund’s most recent fiscal year end or eleven-month period ended
December 31, 2019.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund (assuming reinvestment of all dividends and distributions). The information
for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting
firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual report, which is available
upon request. The information for fiscal years ended prior to May 24, 2019 has been audited by the predecessor fund’s auditor. Effective
September 30, 2019, the Fund changed its fiscal year end from January 31 to December 31.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(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(c)
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed(d)
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(e)
|
|
Class
A | ||||||||||||||
|
Year
ended 12/31/22 |
$12.15
|
$0.17
|
$(2.32)
|
$(2.15)
|
$(0.16)
|
$(0.26)
|
$(0.42)
|
$9.58
|
(17.73)%(f)
|
$1,393,169
|
0.37%(f)
|
0.37%(f)
|
1.58%(f)
|
22%
|
|
Year
ended 12/31/21 |
11.95
|
0.13
|
1.06
|
1.19
|
(0.26)
|
(0.73)
|
(0.99)
|
12.15
|
10.11(f)
|
1,801,506
|
0.35(f)
|
0.38(f)
|
1.01(f)
|
32
|
|
Year
ended 12/31/20 |
11.96
|
0.16
|
1.14
|
1.30
|
(0.18)
|
(1.13)
|
(1.31)
|
11.95
|
11.67(f)
|
1,851,149
|
0.31(f)
|
0.38(f)
|
1.42(f)
|
88
|
|
Eleven
months ended 12/31/19 |
11.72
|
0.22
|
1.32
|
1.54
|
(0.36)
|
(0.94)
|
(1.30)
|
11.96
|
13.13
|
1,156,291
|
0.40(g)
|
0.47(g)
|
1.95(g)
|
16
|
|
Year
ended 01/31/19 |
12.66
|
0.20
|
(0.80)
|
(0.60)
|
(0.21)
|
(0.13)
|
(0.34)
|
11.72
|
(4.59)
|
1,037,833
|
0.41
|
0.48
|
1.61
|
40
|
|
Year
ended 01/31/18 |
11.06
|
0.14
|
1.69
|
1.83
|
(0.23)
|
—
|
(0.23)
|
12.66
|
16.59
|
1,169,055
|
0.41
|
0.49
|
1.20
|
6
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 12/31/22 |
11.84
|
0.08
|
(2.25)
|
(2.17)
|
(0.08)
|
(0.26)
|
(0.34)
|
9.33
|
(18.38)
|
162,701
|
1.13
|
1.13
|
0.82
|
22
|
|
Year
ended 12/31/21 |
11.66
|
0.03
|
1.04
|
1.07
|
(0.16)
|
(0.73)
|
(0.89)
|
11.84
|
9.33
|
233,536
|
1.11
|
1.14
|
0.25
|
32
|
|
Year
ended 12/31/20 |
11.72
|
0.07
|
1.09
|
1.16
|
(0.09)
|
(1.13)
|
(1.22)
|
11.66
|
10.70
|
250,605
|
1.08
|
1.15
|
0.65
|
88
|
|
Eleven
months ended 12/31/19 |
11.49
|
0.13
|
1.29
|
1.42
|
(0.25)
|
(0.94)
|
(1.19)
|
11.72
|
12.44
|
273,048
|
1.16(g)
|
1.23(g)
|
1.19(g)
|
16
|
|
Year
ended 01/31/19 |
12.41
|
0.10
|
(0.78)
|
(0.68)
|
(0.11)
|
(0.13)
|
(0.24)
|
11.49
|
(5.33)
|
358,746
|
1.17
|
1.24
|
0.86
|
40
|
|
Year
ended 01/31/18 |
10.85
|
0.05
|
1.65
|
1.70
|
(0.14)
|
—
|
(0.14)
|
12.41
|
15.69
|
409,418
|
1.16
|
1.25
|
0.43
|
6
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 12/31/22 |
12.05
|
0.14
|
(2.30)
|
(2.16)
|
(0.13)
|
(0.26)
|
(0.39)
|
9.50
|
(17.94)
|
135,035
|
0.63
|
0.63
|
1.32
|
22
|
|
Year
ended 12/31/21 |
11.85
|
0.09
|
1.07
|
1.16
|
(0.23)
|
(0.73)
|
(0.96)
|
12.05
|
9.92
|
161,076
|
0.61
|
0.64
|
0.75
|
32
|
|
Year
ended 12/31/20 |
11.88
|
0.13
|
1.12
|
1.25
|
(0.15)
|
(1.13)
|
(1.28)
|
11.85
|
11.32
|
153,448
|
0.58
|
0.65
|
1.15
|
88
|
|
Eleven
months ended 12/31/19 |
11.65
|
0.19
|
1.30
|
1.49
|
(0.32)
|
(0.94)
|
(1.26)
|
11.88
|
12.84
|
131,445
|
0.66(g)
|
0.73(g)
|
1.69(g)
|
16
|
|
Year
ended 01/31/19 |
12.59
|
0.16
|
(0.79)
|
(0.63)
|
(0.18)
|
(0.13)
|
(0.31)
|
11.65
|
(4.86)
|
116,637
|
0.66
|
0.73
|
1.36
|
40
|
|
Year
ended 01/31/18 |
11.00
|
0.11
|
1.68
|
1.79
|
(0.20)
|
—
|
(0.20)
|
12.59
|
16.33
|
123,884
|
0.66
|
0.74
|
0.96
|
6
|
|
| ||||||||||||||
|
Class
S | ||||||||||||||
|
Year
ended 12/31/22 |
12.16
|
0.18
|
(2.32)
|
(2.14)
|
(0.17)
|
(0.26)
|
(0.43)
|
9.59
|
(17.64)
|
19,994
|
0.28
|
0.28
|
1.67
|
22
|
|
Year
ended 12/31/21 |
11.96
|
0.14
|
1.07
|
1.21
|
(0.28)
|
(0.73)
|
(1.01)
|
12.16
|
10.22
|
26,025
|
0.26
|
0.29
|
1.10
|
32
|
|
Period
ended 12/31/20(h)
|
10.46
|
0.11
|
2.38
|
2.49
|
(0.19)
|
(0.80)
|
(0.99)
|
11.96
|
23.86
|
26,339
|
0.23(g)
|
0.30(g)
|
1.50(g)
|
88
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 12/31/22 |
12.25
|
0.19
|
(2.34)
|
(2.15)
|
(0.18)
|
(0.26)
|
(0.44)
|
9.66
|
(17.54)
|
25,613
|
0.13
|
0.13
|
1.82
|
22
|
|
Year
ended 12/31/21 |
12.04
|
0.16
|
1.08
|
1.24
|
(0.30)
|
(0.73)
|
(1.03)
|
12.25
|
10.40
|
33,378
|
0.11
|
0.14
|
1.25
|
32
|
|
Year
ended 12/31/20 |
12.03
|
0.19
|
1.15
|
1.34
|
(0.20)
|
(1.13)
|
(1.33)
|
12.04
|
11.97
|
29,097
|
0.08
|
0.15
|
1.65
|
88
|
|
Eleven
months ended 12/31/19 |
11.78
|
0.25
|
1.32
|
1.57
|
(0.38)
|
(0.94)
|
(1.32)
|
12.03
|
13.39
|
18,433
|
0.16(g)
|
0.23(g)
|
2.19(g)
|
16
|
|
Year
ended 01/31/19 |
12.73
|
0.23
|
(0.82)
|
(0.59)
|
(0.23)
|
(0.13)
|
(0.36)
|
11.78
|
(4.41)
|
15,732
|
0.17
|
0.24
|
1.85
|
40
|
|
Year
ended 01/31/18 |
11.12
|
0.20
|
1.67
|
1.87
|
(0.26)
|
—
|
(0.26)
|
12.73
|
16.91
|
17,618
|
0.17
|
0.25
|
1.63
|
6
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 12/31/22 |
12.15
|
0.20
|
(2.32)
|
(2.12)
|
(0.19)
|
(0.26)
|
(0.45)
|
9.58
|
(17.45)
|
9
|
0.05
|
0.05
|
1.90
|
22
|
|
Year
ended 12/31/21 |
11.95
|
0.17
|
1.07
|
1.24
|
(0.31)
|
(0.73)
|
(1.04)
|
12.15
|
10.53
|
11
|
0.00
|
0.03
|
1.36
|
32
|
|
Year
ended 12/31/20 |
11.95
|
0.20
|
1.14
|
1.34
|
(0.21)
|
(1.13)
|
(1.34)
|
11.95
|
12.04
|
11
|
0.00
|
0.07
|
1.73
|
88
|
|
Period
ended 12/31/19(i)
|
12.03
|
0.17
|
1.08
|
1.25
|
(0.39)
|
(0.94)
|
(1.33)
|
11.95
|
10.45
|
10
|
0.09(g)
|
0.16(g)
|
2.26(g)
|
16
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 12/31/22 |
12.15
|
0.20
|
(2.32)
|
(2.12)
|
(0.19)
|
(0.26)
|
(0.45)
|
9.58
|
(17.45)
|
2,061
|
0.05
|
0.05
|
1.90
|
22
|
|
Year
ended 12/31/21 |
11.95
|
0.17
|
1.07
|
1.24
|
(0.31)
|
(0.73)
|
(1.04)
|
12.15
|
10.53
|
2,767
|
0.00
|
0.03
|
1.36
|
32
|
|
Year
ended 12/31/20 |
11.95
|
0.20
|
1.14
|
1.34
|
(0.21)
|
(1.13)
|
(1.34)
|
11.95
|
12.04
|
2,147
|
(0.01)
|
0.06
|
1.74
|
88
|
|
Period
ended 12/31/19(i)
|
12.03
|
0.18
|
1.08
|
1.26
|
(0.40)
|
(0.94)
|
(1.34)
|
11.95
|
10.49
|
10
|
0.04(g)
|
0.11(g)
|
2.31(g)
|
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. |
17 Invesco Select
Risk: Moderate Investor Fund
|
(c)
|
In
addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of
the underlying funds in which the Fund invests. Because
the
underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees
and expenses incurred indirectly by the Fund will vary.
Estimated
underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the
underlying funds and are deducted from the value
of
the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the
Fund’s total return. Estimated acquired fund fees from
underlying
funds were 0.48%, 0.52% and 0.58% for the years ended December 31, 2022, 2021 and 2020, respectively. |
|
(d)
|
Does
not include indirect expenses from affiliated fund fees and expenses of 0.56%, 0.57% and 0.58% for the eleven months ended December 31,
2019, and for the years ended January 31,
2019
and 2018, respectively. |
|
(e)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended December
31, 2020, the portfolio turnover calculation
excludes
the value of securities purchased of $597,759,006 in connection with the acquisition of Invesco Moderate Allocation Fund into the Fund.
|
|
(f)
|
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%, 0.24% and 0.23% for the years ended
December
31, 2022, 2021 and 2020, respectively. |
|
(g)
|
Annualized.
|
|
(h)
|
Commencement
date of May 15, 2020. |
|
(i)
|
Commencement
date after the close of business on May 24, 2019. |
18 Invesco Select
Risk: Moderate Investor Fund
Hypothetical Investment and Expense Information
In connection with the
final settlement reached between Invesco and certain of its affiliates with certain regulators, including the New York Attorney General’s
Office, the SEC and the Colorado Attorney General’s Office (the settlement) arising out of certain market timing and unfair pricing
allegations made against Invesco and certain of its affiliates, Invesco and certain of its affiliates agreed, among other things, to disclose
certain hypothetical information regarding investment and expense information to Fund shareholders. The chart below is intended to reflect
the annual and cumulative impact of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s
returns over a 10-year period. The example reflects the following:
◾
You
invest $10,000 in the Fund and hold it for the entire 10-year period;
◾
Your
investment has a 5% return before expenses each year;
◾
The
Fund’s current annual expense ratio includes, if applicable, any contractual fee waiver or expense reimbursement that would apply
for the period for which it was committed;
◾
Hypotheticals
both with and without any applicable initial sales charge applied; and
◾
There
is no sales charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio
for the Fund’s classes for any of the years shown. This is only a hypothetical presentation made to illustrate what expenses and
returns would be under the above scenarios; your actual returns and expenses are likely to differ (higher or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
(1.58%)
|
2.51%
|
6.76%
|
11.19%
|
15.81%
|
20.61%
|
25.62%
|
30.83%
|
36.26%
|
41.91%
|
|
End
of Year Balance |
$9,842.18
|
$10,250.63
|
$10,676.03
|
$11,119.08
|
$11,580.52
|
$12,061.11
|
$12,561.65
|
$13,082.96
|
$13,625.90
|
$14,191.38
|
|
Estimated
Annual Expenses |
$631.99
|
$85.39
|
$88.94
|
$92.63
|
$96.47
|
$100.48
|
$104.65
|
$108.99
|
$113.51
|
$118.22
|
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.15%
|
8.47%
|
12.97%
|
17.66%
|
22.55%
|
27.63%
|
32.93%
|
38.44%
|
44.19%
|
50.17%
|
|
End
of Year Balance |
$10,415.00
|
$10,847.22
|
$11,297.38
|
$11,766.22
|
$12,254.52
|
$12,763.08
|
$13,292.75
|
$13,844.40
|
$14,418.94
|
$15,017.33
|
|
Estimated
Annual Expenses |
$86.76
|
$90.36
|
$94.11
|
$98.02
|
$102.09
|
$106.32
|
$110.74
|
$115.33
|
$120.12
|
$125.10
|
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.61%
|
1.61%
|
1.61%
|
1.61%
|
1.61%
|
1.61%
|
1.61%
|
1.61%
|
0.85%
|
0.85%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.39%
|
6.89%
|
10.52%
|
14.27%
|
18.14%
|
22.14%
|
26.28%
|
30.57%
|
35.98%
|
41.63%
|
|
End
of Year Balance |
$10,339.00
|
$10,689.49
|
$11,051.87
|
$11,426.52
|
$11,813.88
|
$12,214.37
|
$12,628.44
|
$13,056.55
|
$13,598.39
|
$14,162.73
|
|
Estimated
Annual Expenses |
$163.73
|
$169.28
|
$175.02
|
$180.95
|
$187.09
|
$193.43
|
$199.98
|
$206.76
|
$113.28
|
$117.98
|
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
1.11%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.89%
|
7.93%
|
12.13%
|
16.49%
|
21.02%
|
25.73%
|
30.62%
|
35.70%
|
40.98%
|
46.47%
|
|
End
of Year Balance |
$10,389.00
|
$10,793.13
|
$11,212.98
|
$11,649.17
|
$12,102.32
|
$12,573.10
|
$13,062.20
|
$13,570.32
|
$14,098.20
|
$14,646.62
|
|
Estimated
Annual Expenses |
$113.16
|
$117.56
|
$122.13
|
$126.88
|
$131.82
|
$136.95
|
$142.28
|
$147.81
|
$153.56
|
$159.53
|
|
| ||||||||||
|
Class
S |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.76%
|
0.76%
|
0.76%
|
0.76%
|
0.76%
|
0.76%
|
0.76%
|
0.76%
|
0.76%
|
0.76%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.24%
|
8.66%
|
13.27%
|
18.07%
|
23.08%
|
28.29%
|
33.73%
|
39.40%
|
45.31%
|
51.48%
|
|
End
of Year Balance |
$10,424.00
|
$10,865.98
|
$11,326.70
|
$11,806.95
|
$12,307.56
|
$12,829.40
|
$13,373.37
|
$13,940.40
|
$14,531.47
|
$15,147.61
|
|
Estimated
Annual Expenses |
$77.61
|
$80.90
|
$84.33
|
$87.91
|
$91.64
|
$95.52
|
$99.57
|
$103.79
|
$108.19
|
$112.78
|
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.61%
|
0.61%
|
0.61%
|
0.61%
|
0.61%
|
0.61%
|
0.61%
|
0.61%
|
0.61%
|
0.61%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.39%
|
8.97%
|
13.76%
|
18.75%
|
23.96%
|
29.41%
|
35.09%
|
41.02%
|
47.21%
|
53.67%
|
|
End
of Year Balance |
$10,439.00
|
$10,897.27
|
$11,375.66
|
$11,875.05
|
$12,396.37
|
$12,940.57
|
$13,508.66
|
$14,101.69
|
$14,720.75
|
$15,367.00
|
|
Estimated
Annual Expenses |
$62.34
|
$65.08
|
$67.93
|
$70.91
|
$74.03
|
$77.28
|
$80.67
|
$84.21
|
$87.91
|
$91.77
|
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.47%
|
9.14%
|
14.02%
|
19.11%
|
24.44%
|
30.00%
|
35.81%
|
41.88%
|
48.23%
|
54.85%
|
|
End
of Year Balance |
$10,447.00
|
$10,913.98
|
$11,401.84
|
$11,911.50
|
$12,443.94
|
$13,000.19
|
$13,581.29
|
$14,188.38
|
$14,822.60
|
$15,485.17
|
|
Estimated
Annual Expenses |
$54.18
|
$56.61
|
$59.14
|
$61.78
|
$64.54
|
$67.43
|
$70.44
|
$73.59
|
$76.88
|
$80.32
|
|
| ||||||||||
19 Invesco Select
Risk: Moderate Investor Fund
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.47%
|
9.14%
|
14.02%
|
19.11%
|
24.44%
|
30.00%
|
35.81%
|
41.88%
|
48.23%
|
54.85%
|
|
End
of Year Balance |
$10,447.00
|
$10,913.98
|
$11,401.84
|
$11,911.50
|
$12,443.94
|
$13,000.19
|
$13,581.29
|
$14,188.38
|
$14,822.60
|
$15,485.17
|
|
Estimated
Annual Expenses |
$54.18
|
$56.61
|
$59.14
|
$61.78
|
$64.54
|
$67.43
|
$70.44
|
$73.59
|
$76.88
|
$80.32
|
|
| ||||||||||
1
Your
actual expenses may be higher or lower than those shown.
2
The
hypothetical assumes you hold your investment for a full 10 years. Therefore, any applicable deferred sales charge that might apply in
year one for Class C has not been deducted.
20 Invesco Select
Risk: Moderate Investor Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Select Risk: Moderate Investor Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
O-OPSMI-PRO-1
|
Prospectus
April
28,
2023
Class:
A (CAAMX), C (CACMX),
R (CMARX), S (CMASX),
Y (CAAYX), R5 (CMAIX),
R6 (CNSSX)
Invesco
Select Risk: Moderately Conservative Investor Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission
(CFTC) have not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary
is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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Back
Cover |
Invesco
Select Risk: Moderately Conservative Investor Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is total return consistent with a lower level of risk relative to the broad stock market.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
|
Class:
|
A
|
C
|
R
|
S
|
Y
|
R5
|
R6
|
|
Maximum
Sales Charge (Load) Imposed
on
Purchases (as a percentage of
offering
price) |
5.50%
|
None
|
None
|
None
|
None
|
None
|
None
|
|
| |||||||
|
Maximum
Deferred Sales Charge (Load)
(as
a percentage of original purchase
price
or redemption proceeds,
whichever
is less) |
None1
|
1.00%
|
None
|
None
|
None
|
None
|
None
|
|
| |||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 29%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual funds advised by Invesco Advisers, Inc. (Invesco
or the Adviser) and exchange-traded funds (ETFs) and other pooled investment vehicles advised by Invesco Capital Management LLC (Invesco
Capital) or mutual funds, ETFs and other pooled investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco and
Invesco Capital are affiliates of each other as they are both indirect wholly-owned subsidiaries of Invesco Ltd. The Fund’s target
allocation is to invest approximately 30%-50% of its total assets in underlying funds that invest primarily in equity securities (equity
funds), approximately 50%-70% of its total assets in underlying funds that invest primarily in fixed-income securities (fixed-income funds)
and approximately 5%-20% of its total assets in alternative asset classes including underlying funds that invest primarily in commodities
and other derivatives.
The
Fund does not limit its investment in underlying funds that invest primarily
in foreign securities.
The
Fund may also allocate up to 100% of its assets to affiliated or unaffiliated
ETFs.
The
Fund may invest directly in derivatives to hedge its cash position and
manage the duration of the Fund’s portfolio, including but not limited to futures, total return swaps, and forward contracts. The
Fund may also use other types of derivatives that are consistent with its investment objective and investment strategies. In addition,
the Fund will gain exposure to derivatives through its investment in underlying funds.
The
Adviser uses a three-step process to create the Fund’s portfolio including:
(1) a strategic asset allocation by the Adviser among broad asset classes; (2) the actual selection by the Adviser of underlying funds
to represent the broad asset classes and the determination by the Adviser of target weightings in these underlying funds; in the case
where there are multiple funds in a broad asset class, the Adviser attempts to balance the amount of active risk contributed by each underlying
fund in order to determine the allocation; and (3) the ongoing monitoring of the Fund’s asset class allocations, underlying funds
and target weightings in the underlying funds.
Based
on the portfolio managers’ research, the strategic allocations of the
portfolios are broadly diversified to gain exposure to areas of the market that the portfolio managers believe may perform well over a
full market cycle, including periods of adverse economic environments such as recessions and inflationary growth. The portfolio managers
gain exposure to the desired asset class by selecting the most representative funds. The Adviser rebalances the Fund’s investments
in the underlying funds on an
1 Invesco
Select Risk: Moderately Conservative Investor Fund
annual
basis to keep them at their target weightings. Although the Adviser has the ability to rebalance on a more frequent basis if it believes
it is appropriate to do so, the Fund’s asset class weightings may not match the above percentage weightings during a quarter due
to market fluctuations, cash flows and other factors. The Adviser may change the Fund’s asset class allocations, the underlying
funds or the target weightings in the underlying funds without notice to, or approval by, shareholders.
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing.
An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. Because the Fund is a fund of funds, the Fund is subject to the risks associated with the underlying funds in which
it invests. The principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism, economic crisis or adverse investor sentiment
generally. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well,
there can be no assurance that specific investments held by an underlying fund will rise in value.
Fund
of Funds Risk. The Fund’s performance depends on that of
the underlying funds in which it invests. Accordingly, the risks associated with an investment in the Fund include the risks associated
with investments in the underlying funds. The Fund will indirectly pay a proportional share of the fees and expenses of the underlying
funds in which it invests. There are risks that the Fund will vary from its target weightings (if any) in the underlying funds, that the
underlying funds will not achieve their investment objectives, that the underlying funds’ performance may be lower than their represented
asset classes, and that the Fund may withdraw its investments in an underlying fund at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) an exchange-traded fund’s shares may trade above or below its net asset value;
(2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading an exchange-traded
fund’s shares may be halted by the listing exchange; (4) a passively-managed exchange-traded fund may not track the performance
of the reference asset; and (5) a passively-managed exchange-traded fund may hold troubled securities. Investment in exchange-traded funds
may involve duplication of management fees and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate
share of any expenses paid by the exchange-traded funds in which it invests. Further, certain exchange-traded funds in which the Fund
or an underlying fund may invest are leveraged, which may result in economic leverage, permitting the Fund or an underlying fund to gain
exposure that is greater than would be the case in an unlevered instrument, and potentially resulting in greater volatility.
Allocation
Risk.
The Fund’s investment performance depends, in part, on how its assets are allocated among the underlying funds or asset classes.
The Adviser’s evaluations and assumptions regarding the asset classes or the underlying funds in which the Fund invests may be incorrect,
causing
the Fund to be invested (or not invested) in one or more asset classes or underlying funds at an inopportune time, which could negatively
affect the Fund’s performance.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. An underlying
fund’s adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune
time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially
increase an underlying fund’s portfolio turnover rate and transaction costs.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Municipal
Securities Risk. The
risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the security.
Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a
decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate
the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status
of municipal securities.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities are subject to prepayment or call risk, which is the risk that a borrower's payments may be received
earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in an underlying fund reinvesting
these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage- and asset-backed securities also
are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing
the price of the mortgage- and asset-backed securities and an underlying fund’s share price to fall. An unexpectedly high rate of
defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities and will result in losses
to an underlying fund. Privately-issued mortgage-backed securities and
2 Invesco
Select Risk: Moderately Conservative Investor Fund
asset-backed
securities may be less liquid than other types of securities and an underlying fund may be unable to sell these securities at the time
or price it desires. During periods of market stress or high redemptions, an underlying fund may be forced to sell these securities at
significantly reduced prices, resulting in losses. Liquid privately-issued mortgage-backed securities and asset-backed securities can
become illiquid during periods of market stress. Privately issued mortgage-related securities are not subject to the same underwriting
requirements as those with government or government-sponsored entity guarantees and, therefore, mortgage loans underlying privately issued
mortgage-related securities may have less favorable collateral, credit risk, liquidity risk or other underwriting characteristics, and
wider variances in interest rate, term, size, purpose and borrower characteristics. An underlying fund may invest in mortgage pools that
include subprime mortgages, which are loans made to borrowers with weakened credit histories or with lower capacity to make timely payments
on their mortgages. Liquidity risk is even greater for mortgage pools that include subprime mortgages.
High
Yield Debt Securities (Junk Bond) Risk.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject an underlying fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities.
Prices of high yield debt securities tend to be very volatile.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market
anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if an underlying fund
invests in CLOs that hold loans of uncreditworthy borrowers or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
TBA
Transactions Risk.
TBA transactions involve the risk of loss if the securities received are less favorable than what was anticipated by an underlying fund
when entering into the TBA transaction, or if the counterparty fails to deliver the securities. When an underlying fund enters into a
short sale of a TBA mortgage it does not own, an underlying fund may have to purchase deliverable mortgages to settle the short sale at
a higher price than anticipated, thereby causing a loss. As there is no limit on how much the price of mortgage securities can increase,
an underlying fund’s exposure is unlimited. An underlying fund may not always be able to purchase mortgage securities to close out
the short position at a particular time or at an acceptable price. In addition, taking short positions results in a form of leverage,
which could increase the volatility of an underlying fund’s share price.
REIT
Risk/Real Estate Risk.
Investments in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological
factors that affect property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap
companies, may be more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt
obligations, held by an underlying fund, an underlying fund may acquire real estate directly, which involves additional risks such as
environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Zero
Coupon or Pay-In-Kind Securities Risk.
The value, interest rates, and liquidity of non-cash paying instruments, such as zero coupon and pay-in-kind securities, are subject to
greater fluctuation than other types of securities. The higher yields and interest rates on pay-in-kind securities reflect the payment
deferral and increased credit risk associated with such instruments and that such investments may represent a higher credit risk than
loans that periodically pay interest.
Senior
Loans and Other Loans Risk. Risks associated with an investment
in Senior Loans include credit risk, interest rate risk, liquidity risk, valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair an underlying fund’s ability to sell Senior
Loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments.
Extended trade settlement periods may result in cash not being immediately available to an underlying fund. As a result, an underlying
fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding
Senior Loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans can be affected
by and sensitive to changes in government regulation and to economic downturns in the United States and abroad. Senior loans are also
subject to the risk that a court could subordinate a senior loan or take other action detrimental to the holders of senior loans. Loans
are subject to the risk that the value of the collateral, if any, securing a loan may decline, be insufficient to meet the obligations
of the borrower, or be difficult to liquidate. Loan investments are often issued in connection with highly leveraged transactions which
are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy.
These risks could cause an underlying fund to lose income or principal on a particular investment, which in turn could affect an underlying
fund’s returns.
Variable
or Floating Rate Instruments.
Variable or floating rate instruments are securities that provide for a periodic adjustment in the interest rate paid on the obligation.
The interest rates for securities with variable interest rates are readjusted on set dates (such as the last day of the month or calendar
quarter) and the interest rates for securities with floating rates are reset whenever a specified interest rate change occurs. Variable
or floating interest rates generally reduce changes in the market price of securities from their original purchase price because, upon
readjustment, such rates approximate market rates. Accordingly, as market interest rates decrease or increase, the potential for capital
appreciation or depreciation is less for variable or floating rate securities than for fixed rate obligations.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. Regulators and financial industry working groups
in several jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to replace
LIBOR and to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the Secured
Overnight Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other interbank
offered rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which
3 Invesco
Select Risk: Moderately Conservative Investor Fund
underlying
fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments
will have the same volume or liquidity. Additionally, although regulators have generally prohibited banking institutions from entering
into new contracts that reference those USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain
“legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement
interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such
uncertainty and risks in “legacy” USD LIBOR instruments held by an underlying fund could result in losses to an underlying
fund.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of an underlying
fund’s securities become illiquid, an underlying fund may not be able to timely pay redemption proceeds and may need to sell securities
at significantly reduced prices.
Investing
in Stocks Risk.
The value of an underlying fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant
short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have
unexpected negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets
may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Foreign
Securities Risk.
An underlying fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation
policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk
of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which an underlying fund could lose its
entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign
companies generally may be
subject
to less stringent regulations than U.S. companies, including financial reporting requirements and auditing and accounting controls, and
may therefore be more susceptible to fraud or corruption. There may be less public information available about foreign companies than
U.S. companies, making it difficult to evaluate those foreign companies. Unless an underlying fund has hedged its foreign currency exposure,
foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities
denominated in such foreign currency (or other instruments through which an underlying fund has exposure to foreign currencies) to decline
in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not
always successful.
Foreign
Government Debt Risk. Investments
in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those
relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment
of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and an underlying
fund may have limited recourse in the event of a default against the defaulting government. Without the approval of debt holders, some
governmental debtors have in the past been able to reschedule or restructure their debt payments or declare moratoria on payments.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede an underlying fund’s
ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change
quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization
of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country,
protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Growth
Investing Risk.
If a growth company’s earnings or stock price fails to increase as anticipated, or if its business plans do not produce the expected
results, the value of its securities may decline sharply. Growth companies may be newer or smaller companies that may experience greater
stock price fluctuations and risks of loss than larger, more established companies. Newer growth companies tend to retain a large part
of their earnings for research, development or investments in capital assets. Therefore, they may not pay any dividends for some time.
Growth investing has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth
investing is out of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price
and the securities of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may
also be more volatile than other securities because of investor speculation.
4 Invesco
Select Risk: Moderately Conservative Investor Fund
Small-
and Mid-Capitalization Companies Risk.
Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing
in larger, more established companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market
conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and
less liquid than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations
and may experience more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many
instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially
less than is typical for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller
companies may be subject to wider price fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable
price when it wants to sell them. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business,
they may not pay dividends for some time, particularly if they are newer companies. It may take a substantial period of time to realize
a gain on an investment in a small- or mid-cap company, if any gain is realized at all.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also
may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many
other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Convertible
Securities Risk. The
market values of convertible securities are affected by market interest rates, the risk of actual issuer default on interest or principal
payments and the value of the underlying common stock into which the convertible security may be converted. Additionally, a convertible
security is subject to the same types of market and issuer risks that apply to the underlying common stock. In addition, certain convertible
securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events,
and, as a result, are subject to an increased risk of loss. Convertible securities may be rated below investment grade and therefore considered
to have more speculative characteristics and greater susceptibility to default or decline in market value than investment grade securities.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and an underlying fund may be unable to dispose of the securities at a desirable time or price.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities and such securities may be difficult to value and may have
significant volatility.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions subject an underlying fund to market risk because the value or yield of a security at delivery
may be more or less than the purchase price or yield generally available when delivery occurs, and counterparty risk because an underlying
fund relies on the buyer or seller, as the case may be, to consummate the transaction. These transactions also have a leveraging effect
on an underlying fund because an underlying fund commits to purchase securities
that
it does not have to pay for until a later date, which increases an underlying fund’s overall investment exposure and, as a result,
its volatility.
Derivatives
Risk.
The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay an underlying fund or the Fund
the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment
up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of
the underlying asset could result in an underlying fund or the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset, which may make the underlying fund’s or the Fund’s returns
more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the
underlying fund or the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be
more acute under adverse market conditions, during which the underlying fund or the Fund may be most in need of liquidating its derivative
positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact
the underlying fund’s or the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always
be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the
expected benefits, particularly during adverse market conditions.
Commodity
Risk.
An underlying fund may have investment exposure to the commodities markets and/or a particular sector of the commodities markets, which
may subject an underlying fund to greater volatility than investments in traditional securities, such as stocks and bonds. Volatility
in the commodities markets may be caused by changes in overall market movements, domestic and foreign political and economic events and
policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning interest rates,
domestic and foreign inflation rates, investment and trading activities of mutual funds, hedge funds and commodities funds, and factors
such as drought, floods, weather, livestock disease, embargoes, tariffs and other regulatory developments, or supply and demand disruptions.
Because an underlying fund’s performance may be linked to the performance of volatile commodities, investors should be willing to
assume the risks of potentially significant fluctuations in the value of underlying fund’s shares.
Geographic
Focus Risk.
An underlying fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single
country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant
negative impact on an underlying fund’s investment performance.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact an underlying
fund’s operations, universe of potential investment options, and return potential.
5 Invesco
Select Risk: Moderately Conservative Investor Fund
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. Because the investment process of the Fund relies heavily on its
asset allocation process, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on the Fund’s net asset value. Similarly, because the investment processes of certain underlying funds rely heavily on their
security selection processes, market movements that are counter to the portfolio managers’ expectations may have a significant adverse
effect on certain underlying funds’ net asset values. Additionally, legislative, regulatory, or tax developments may adversely affect
management of the Fund and underlying funds and, therefore, their abilities to achieve their investment objectives.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The bar chart shows changes in the performance
of the Fund from year to year as of December 31. The performance table compares the Fund's performance to that of a broad measure of market
performance and an additional index with characteristics relevant to the Fund.
The
Fund's past performance (before and after taxes) is not necessarily an indication of its future performance.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund's website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
11.03%
|
|
Worst
Quarter |
March
31, 2020 |
-12.71%
|
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
4/29/2005
|
-21.25%
|
0.33%
|
2.31%
|
|
Return
After Taxes on Distributions |
|
-22.25
|
-1.37
|
0.96
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
-12.19
|
-0.12
|
1.39
|
|
| ||||
|
Class
C |
4/29/2005
|
-18.09
|
0.72
|
2.28
|
|
| ||||
|
Class
R |
4/29/2005
|
-16.90
|
1.24
|
2.64
|
|
| ||||
|
Class
S |
6/3/2011
|
-16.66
|
1.58
|
3.00
|
|
| ||||
|
Class
Y |
10/3/2008
|
-16.49
|
1.73
|
3.16
|
|
| ||||
|
Class
R5 |
4/29/2005
|
-16.40
|
1.79
|
3.21
|
|
| ||||
|
Class
R6 |
4/4/2017
|
-16.33
|
1.81
|
3.071
|
|
| ||||
|
Custom
Invesco Select Risk: Moderately
Conservative
Index (40% MSCI ACWI (Net)
(reflects
reinvested dividends net of withholding
taxes,
but reflects no deduction for fees, expenses
or
other taxes) and 60% Bloomberg Global
Aggregate
USD Hedged Index (reflects
no
deduction
for fees, expenses or taxes)) |
|
-13.89
|
2.61
|
4.40
|
|
| ||||
|
Bloomberg
Global Aggregate USD Hedged Index
(reflects
no deduction for fees, expenses or taxes) |
|
-11.22
|
0.36
|
1.70
|
|
| ||||
|
MSCI
All Country World Index (Net) (reflects
reinvested
dividends net of withholding taxes, but
reflects
no deduction for fees, expenses or other
taxes)
|
|
-18.36
|
5.23
|
7.98
|
|
| ||||
1
Performance shown prior to the inception
date is that of the Fund's Class A shares at net asset value and includes the 12b-1 fees applicable to that class. Although invested in
the same portfolio of securities, Class R6 shares' returns of the Fund will be different from Class A shares' returns of the Fund as they
have different expenses.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Jeffrey
Bennett, CFA |
Portfolio
Manager |
2020
|
|
| ||
|
Alessio
de Longis, CFA |
Portfolio
Manager |
2023
|
|
| ||
|
Scott
Hixon, CFA |
Portfolio
Manager |
2023
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
6 Invesco
Select Risk: Moderately Conservative Investor Fund
There
are no minimum investments for Class S shares for fund accounts.
The minimum investments for Class A, C, R and Y shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is total return consistent with a lower level of risk relative to the broad stock market. The Fund’s
investment objective may be changed by the Board of Trustees (the Board) without shareholder approval.
The
Fund is a “fund of funds,” and invests its assets in other underlying mutual
funds advised by Invesco and ETFs and other pooled investment vehicles advised by Invesco Capital or mutual funds, ETFs and other pooled
investment vehicles advised by unaffiliated advisers (the underlying funds). Invesco and Invesco Capital are affiliates of each other
as they are both indirect wholly-owned subsidiaries of Invesco Ltd. The Fund’s target allocation is to invest approximately 30%-50%
of its total assets in underlying funds that invest primarily in equity securities (equity funds), approximately 50%-70% of its total
assets in underlying funds that invest primarily in fixed-income securities (fixed-income funds) and approximately 5%-20% of its total
assets in alternative asset classes including underlying funds that invest primarily in commodities and other derivatives.
The
Fund does not limit its investment in underlying funds that invest primarily
in foreign securities.
The
Fund may also allocate up to 100% of its assets to affiliated or unaffiliated
ETFs. An ETF may be actively managed or it may seek to track the performance of an index, a commodity or a basket of assets, but its shares
trade like stock on an exchange. Shares of ETFs experience price changes throughout the day as they are bought and sold.
The
Fund may use derivatives to hedge its cash position and manage the
duration of the Fund’s portfolio, including but not limited to futures, total return swaps, and forward contracts. The Fund may
also use other types of derivatives that are consistent with its investment objective and investment strategies. With respect to derivatives,
references to the “underlying funds” also include the Fund and references to the “Fund” also include the underlying
funds. The underlying funds can invest in a number of different types of “derivatives” instruments. A derivative is an instrument
whose value depends on (or is derived from) the value of an underlying security, asset, interest rate, index or currency. Derivatives
may allow an underlying fund to increase or decrease its exposure to certain markets or risks.
Some
underlying funds may use derivatives to seek income or capital gain
or to hedge against the risks of other investments. Options, futures, forward contracts and swaps are some of the types of derivatives
the underlying funds can use. The underlying funds may also use other types of derivatives that are consistent with their investment strategies
or for hedging purposes. The underlying funds are not required to use derivatives in seeking their investment objectives or for hedging
and might not do so.
There
is no target range for indirect investment in derivatives at the Fund
level.
The
Adviser uses a three-step process to create the Fund’s portfolio including:
(1) a strategic asset allocation by the Adviser among broad asset classes; (2) the actual selection by the Adviser of underlying funds
to represent the broad asset classes and the determination by the Adviser of target weightings in these underlying funds; in the case
where there are multiple funds in a broad asset class, the Adviser attempts to balance the amount of active risk contributed by each underlying
fund in order to determine the allocation; and (3) the ongoing monitoring of the Fund’s asset class allocations, underlying funds
and target weightings in the underlying funds.
Based
on the portfolio managers’ research, the strategic allocations of the
portfolios are broadly diversified to gain exposure to areas of the market that the portfolio managers believe may perform well over a
full market cycle, including periods of adverse economic environments such as recessions and inflationary growth. The portfolio managers
gain exposure to the desired asset class by selecting the most representative funds. The Adviser rebalances the Fund’s investments
in the underlying funds on an annual basis to keep them at their target weightings. Although the Adviser has the ability to rebalance
on a more frequent basis if it believes it is appropriate to do so, the Fund’s asset class weightings may not match the above percentage
weightings during a quarter due to market fluctuations, cash flows and other factors. The Adviser may change the Fund’s asset class
allocations, the underlying funds or the target weightings in the underlying funds without notice to, or approval by, shareholders.
7 Invesco
Select Risk: Moderately Conservative Investor Fund
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund and the underlying funds are:
Market
Risk.
The market values of an underlying fund’s investments, and therefore the value of an underlying fund’s shares, will go up
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect
the market as a whole. The value of an underlying fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment
generally. The value of an underlying fund’s investments may also go up or down due to factors that affect an individual issuer
or a particular industry or sector, such as changes in production costs and competitive conditions within an industry. In addition, natural
or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism, economic crisis
or other events may have a significant impact on the value of an underlying fund’s investments, as well as the financial markets
and global economy generally. Such circumstances may also impact the ability of the Adviser to effectively implement an underlying fund’s
investment strategy. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform
well, there can be no assurance that specific investments held by an underlying fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO) member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine
(and the potential for further sanctions in response to Russia’s continued military activity) may escalate. These and other corresponding
events, have had, and could continue to have, severe negative effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall uncertainty. The negative impacts may be particularly acute in certain sectors including,
but not limited to, energy and financials. Russia may take additional countermeasures or retaliatory actions (including cyberattacks),
which could exacerbate negative consequences on global financial markets. The duration of the conflict and corresponding sanctions and
related events cannot be predicted. The foregoing may result in a negative impact on Fund performance and the value of an investment in
an underlying fund, even beyond any direct investment exposure an underlying fund may have to Russian issuers or the adjoining geographic
regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other
significant
economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing
political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing
effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may
result in significant and prolonged effects on an underlying fund’s performance.
Fund
of Funds Risk.
The Fund’s performance depends on that of the underlying funds in which it invests. Accordingly, the risks associated with an investment
in the Fund include the risks associated with investments in the underlying funds. The Fund will indirectly pay a proportional share of
the fees and expenses of the underlying funds in which it invests. There is a risk that the Fund will vary from its target weightings
(if any) in the underlying funds due to factors such as market fluctuations. There can be no assurance that the underlying funds will
achieve their investment objectives, and their performance may be lower than their represented asset classes. Underlying Funds that are
not affiliated with the Fund may change their portfolio managers, investment objectives, investment strategies, policies or practices
without the approval of the Fund, which may cause the Fund to withdraw its investments therein at a disadvantageous time.
Exchange-Traded
Funds Risk.
In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds
are subject to the following additional risks: (1) the market price of an exchange-traded fund’s shares may trade above or below
its net asset value; (2) an active trading market for the exchange-traded fund’s shares may not develop or be maintained; (3) trading
an exchange-traded fund’s shares may be halted if the listing exchange’s officials deem such action appropriate; (4) a passively-managed
exchange-traded fund may not accurately track the performance of the reference asset; and (5) a passively-managed exchange-traded fund
would not necessarily sell a security because the issuer of the security was in financial trouble unless the security is removed from
the index that the exchange-traded fund seeks to track. Investment in exchange-traded funds may involve duplication of management fees
and certain other expenses, as the Fund or an underlying fund indirectly bears its proportionate share of any expenses paid by the exchange-traded
funds in which it invests. Further, certain exchange-traded funds in which the Fund or an underlying fund may invest are leveraged. Investing
in leveraged exchange-traded funds may result in economic leverage, which does not result in the possibility of the Fund or an underlying
fund incurring obligations beyond its investments, but nonetheless permits the Fund or an underlying fund to gain exposure that is greater
than would be the case in an unlevered instrument, which can result in greater volatility.
Allocation
Risk. The Fund’s investment performance depends, in part,
on how its assets are allocated among the underlying funds or asset classes. The Adviser’s evaluations and assumptions regarding
the asset classes or the underlying funds in which the Fund invests may be incorrect, causing the Fund to be invested (or not invested)
in one or more asset classes or underlying funds at an inopportune time. The Adviser’s allocation of the Fund’s assets among
asset classes and underlying funds may therefore not produce the desired results and could cause the Fund to perform poorly or underperform
the Fund’s benchmark and other available funds.
◾
Affiliated
Portfolio Risk. In managing the Fund, the Adviser will have authority
to select and substitute underlying funds. The Adviser may be subject to potential conflicts of interest in selecting underlying funds
because the fees paid to the Adviser or its affiliates by some underlying funds for advisory services are higher than the fees paid by
other underlying funds. In addition, the Fund's portfolio managers may also serve as portfolio managers of the underlying funds.
However, the Adviser monitors the investment process to seek to
8 Invesco
Select Risk: Moderately Conservative Investor Fund
identify,
address and resolve any potential issues and has adopted certain compliance procedures which are designed to address these types of conflicts.
Debt
Securities Risk.
The prices of debt securities held by an underlying fund will be affected by changes in interest rates, the creditworthiness of the issuer
and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has
a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause an underlying
fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may
also reduce an underlying fund’s distributable income because interest payments on floating rate debt instruments held by an underlying
fund will decline. An underlying fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations
to make interest payments and/or to repay principal in a timely manner. If an issuer seeks to restructure the terms of its borrowings
or an underlying fund is required to seek recovery upon a default in the payment of interest or the repayment of principal, an underlying
fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s perception of such strength or
in the credit rating of the issuer or the security may affect the value of debt securities. An underlying fund’s adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk.
Increases in the federal funds and equivalent foreign rates or
other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity
for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate
changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened
volatility and reduced liquidity in the fixed income markets. As a result, the value of an underlying fund’s investments and share
price may decline. Changes in central
bank policies could
also result in higher than normal redemptions by shareholders, which could potentially increase an underlying fund’s portfolio turnover
rate and transaction costs and potentially lower an underlying fund’s performance returns.
U.S.
Government Obligations Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the
U.S. Government, which could affect an underlying fund’s ability to recover should they default. No assurance can be given that
the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Municipal
Securities Risk.
The risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative
enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect
the municipal security’s value, interest payments, repayment of principal and an underlying fund’s ability to sell the security.
Municipal obligations may be more susceptible to downgrades or defaults during recessions or similar periods of economic stress. Municipal
securities structured as revenue bonds are generally not backed by the taxing power of the issuing municipality but rather the revenue
from the particular project or entity for which the bonds were issued. If the Internal Revenue Service determines that an issuer of a
municipal security has not complied with applicable tax requirements, interest from the security could be treated as taxable, which could
result in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce
or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state
tax status of municipal securities.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, differ from
conventional debt securities
because
principal is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed securities are subject to prepayment
or call risk, which is the risk that a borrower's payments may be received earlier or later than expected due to changes in prepayment
rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a result, an underlying fund may reinvest
these early payments at lower interest rates, thereby reducing an underlying fund's income. Mortgage- and asset-backed securities also
are subject to extension risk. An unexpected rise in interest rates could reduce the rate of prepayments and extend the life of the mortgage-
and asset-backed securities, causing the price of the mortgage- and asset-backed securities and an underlying fund’s share price
to fall and would make the mortgage- and asset-backed securities more sensitive to interest rate changes. An unexpectedly high rate of
defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities and will result in losses
to an underlying fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of
securities and an underlying fund may be unable to sell these securities at the time or price it desires. During periods of market stress
or high redemptions, an underlying fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid
privately-issued mortgage-backed securities and asset-backed securities can become illiquid during periods of market stress. An underlying
fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories or
with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include subprime
mortgages. Privately issued mortgage-related securities are not subject to the same underwriting requirements for the underlying
mortgages that are applicable to those mortgage-related securities that have government or government-sponsored entity guarantees. As
a result, the mortgage loans underlying privately issued mortgage-related securities may, and frequently do, have less favorable collateral,
credit risk, liquidity risk or other underwriting characteristics than government or government-sponsored mortgage-related securities
and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics.
High
Yield Debt Securities (Junk Bond) Risk.
An underlying fund’s investments in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated
securities will subject an underlying fund to substantial risk of loss. These securities are considered to be speculative with respect
to the issuer’s ability to pay interest and principal when due and are more susceptible to default or decline in market value due
to adverse economic, regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield
debt securities tend to be very volatile. These securities are less liquid than investment grade debt securities and may be difficult
to sell at a desirable time or price, particularly in times of negative sentiment toward high yield securities.
Collateralized
Loan Obligations Risk.
CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods
of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market
anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if an underlying fund
invests in CLOs that hold loans of uncreditworthy borrowers or if an underlying fund holds subordinate tranches of the CLO that absorb
losses from the defaults before senior tranches. In addition,
CLOs carry risks including interest rate risk and credit risk.
TBA
Transactions Risk.
TBA transactions involve the risk that the securities received may be less favorable than what was anticipated by an underlying fund when
entering into the TBA transaction. TBA transactions also involve the risk that the counterparty will fail to deliver the securities, exposing
an underlying fund to further losses. Whether or not an underlying fund takes delivery of the securities at the termination date of a
TBA
9 Invesco
Select Risk: Moderately Conservative Investor Fund
transaction,
an underlying fund will nonetheless be exposed to changes in the value of the underlying investments during the term of the agreement.
If an underlying fund sells short TBA mortgages that it does not own and the mortgages increase in value, an underlying fund may be required
to pay a higher price than anticipated to purchase the deliverable mortgages to settle the short sale and thereby incur a loss. A short
position in TBA mortgages poses more risk than holding the same TBA mortgages long. It is possible that the market value of the mortgage
securities an underlying fund holds in long positions will decline at the same time that the market value of the mortgage securities an
underlying fund has sold short increases, thereby magnifying any losses. The more an underlying fund pays to purchase the mortgage securities
sold short, the more it will lose on the transaction, which adversely affects its share price. The loss on a long position is limited
to what an underlying fund originally paid for the TBA mortgage, together with any transaction costs. In short transactions, there is
no limit on how much the price of a security can increase, thus an underlying fund’s exposure is theoretically unlimited. An underlying
fund normally closes a short sale of TBA mortgages that it does not own by purchasing mortgage securities on the open market and delivering
them to the broker. An underlying fund may not always be able to complete or “close out” the short position by purchasing
mortgage securities at a particular time or at an acceptable price. An underlying fund incurs a loss if an underlying fund is required
to buy the deliverable mortgage securities at a time when they have appreciated in value from the date of the short sale. An underlying
fund will incur increased transaction costs associated with selling TBA mortgages short. In addition, taking short positions results in
a form of leverage. As a result, changes in the value of an underlying fund’s investments will have a larger effect on its share
price than if it did not engage in these transactions.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Real estate companies, including REITs or similar structures, tend to be small- and mid-cap
companies and their shares may be more volatile and less liquid than larger companies. The value of investments in real estate related
companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial covenants
related thereto, whether the company carries adequate insurance and environmental factors. If a real estate related company defaults on
certain types of debt obligations held by the Fund, the Fund may acquire real estate directly, which involves additional risks such
as environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Zero
Coupon or Pay-In-Kind Securities Risk.
Zero coupon and pay-in-kind securities may be subject to greater fluctuation in value and less liquidity in the event of adverse market
conditions than comparably rated securities paying cash interest at regular interest payment periods. Prices on non-cash-paying instruments
may be more sensitive to changes in the issuer’s financial condition, fluctuation in interest rates and market demand/supply imbalances
than cash-paying securities with similar credit ratings, and thus may be more speculative. Investors may purchase zero coupon and pay-in-kind
securities at a price below the amount payable at maturity. Because such securities do not entitle the holder to any periodic payments
of interest prior to maturity, this prevents any reinvestment of interest payments at prevailing interest rates if prevailing interest
rates rise. The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit risk associated
with such instruments and that such investments may represent a higher credit risk than coupon loans. Pay-in-kind securities may have
a potential variability in valuations because their continuing accruals require continuing judgments about the collectability of the deferred
payments and the value of any associated collateral. Special tax considerations are associated with investing in certain lower-grade securities,
such as zero coupon or pay-in-kind securities.
Senior
Loans and Other Loans Risk. There are a number of risks associated
with an investment in Senior Loans including credit risk, interest rate risk, liquidity risk, valuation risk and prepayment risk. These
risks are typically associated with debt securities but may be heightened in part because of the limited public information regarding
Senior Loans. Senior Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating
rate loans adjusts periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on
resale, irregular trading activity, wide bid/ask spreads and extended trade settlement periods may impair an underlying fund’s ability
to sell Senior Loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective
investments. Extended trade settlement periods may result in cash not being immediately available to an underlying fund. As a result,
an underlying fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk
of holding Senior Loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans
can be affected by and is sensitive to, changes in government regulation and to economic downturns in the United States and abroad. These
risks could cause an underlying fund to lose income or principal on a particular investment, which in turn could affect an underlying
fund’s returns.
In
addition to the risks typically associated with debt securities senior loans
are also subject to the risk that a court could subordinate a senior loan, which typically holds a senior position in the capital structure
of a borrower, to presently existing or future indebtedness or take other action detrimental to the holders of senior loans. Loans usually
have mandatory and optional prepayment provisions. If a borrower prepays a loan, an underlying fund will have to reinvest the proceeds
in other loans or financial assets that may pay lower rates of return.
Loans
are subject to the risk that the value of the collateral, if any, securing
a loan may decline, be insufficient to meet the obligations of the borrower, or be difficult to liquidate. In the event of a default,
an underlying fund may have difficulty collecting on any collateral and would not have the ability to collect on any collateral for an
uncollateralized loan. In addition, the lenders’ security interest or their enforcement of their security under the loan agreement
may be found by a court to be invalid or the collateral may be used to pay other outstanding obligations of the borrower. An underlying
fund’s access to collateral, if any, may be limited by bankruptcy, other insolvency laws, or by the type of loan an underlying fund
has purchased. As a result, a collateralized loan may not be fully collateralized and can decline significantly in value.
Loan
investments are often issued in connection with highly leveraged transactions.
Such transactions include leveraged buyout loans, leveraged recapitalization loans, and other types of acquisition financing. These obligations
are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy.
Highly leveraged loans also may be less liquid than other loans. If an underlying fund voluntarily or involuntarily sold those types of
loans, it might not receive the full value it expected.
Due
to restrictions on transfers in loan agreements and the nature of the
private syndication of loans including, for example, the lack of publicly-available information, some loans are not as easily purchased
or sold as publicly-traded securities. Some loans are illiquid, which may make it difficult for an underlying fund to value them or dispose
of them at an acceptable price when it wants to. Additionally, valuation of Senior Loans may require greater research due to limited public
information available and elements of judgment may play a greater role in valuation since there may be a lack of objective data available.
The market price of investments in floating rate loans is expected to be less affected by changes in interest rates than fixed-rate investments
because floating rate loans pay a floating rate of interest that will fluctuate as market interest rates do and therefore should more
closely track market movements in interest rates.
10 Invesco
Select Risk: Moderately Conservative Investor Fund
Direct
investments in loans and, to a lesser degree, investments in participation
interests in or assignments of loans may be limited. A limited availability of loans could reduce the amount of attractive investments
for an underlying fund. If market demand for loans increases, the interest paid by loans that an underlying fund holds may decrease.
Compared
to securities and to certain other types of financial assets, purchases
and sales of loans take relatively longer to settle. This extended settlement process can (i) increase the counterparty credit risk borne
by an underlying fund; (ii) leave an underlying fund unable to timely vote, or otherwise act with respect to, loans it has agreed to purchase;
(iii) delay an underlying fund from realizing the proceeds of a sale of a loan; (iv) inhibit an underlying fund’s ability to re-sell
a loan that it has agreed to purchase if conditions change (leaving an underlying fund more exposed to price fluctuations); (v) prevent
an underlying fund from timely collecting principal and interest payments; and (vi) expose an underlying fund to adverse tax or regulatory
consequences. To the extent the extended loan settlement process gives rise to short-term liquidity needs, such as the need to satisfy
redemption requests, an underlying fund may hold cash, sell investments or temporarily borrow from banks or other lenders. If an underlying
fund undertakes such measures, an underlying fund’s ability to pay redemption proceeds in a timely manner, as well as an underlying
fund’s performance, may be adversely affected.
If
an underlying fund invests in a loan via a participation, an underlying fund
will be exposed to the ongoing counterparty risk of the entity providing exposure to the loan (and, in certain circumstances, such entity’s
credit risk) in addition to the exposure an underlying fund has to the creditworthiness of the borrower. The terms of the participation
may not entitle an underlying fund to all rights of a direct lender under the loan (for example, with respect to consent, voting or enforcement
rights). Therefore, an underlying fund’s rights under a participation interest for a particular loan may be more limited than the
rights of the original lender or an investor who acquires an assignment of that loan. Where an underlying fund invests in a loan via a
participation, an underlying fund generally will have no right of direct recourse against the borrower or ability to otherwise directly
enforce the terms of the loan agreement.
In
certain circumstances, loans may not be deemed to be securities, and
in the event of fraud or misrepresentation by a borrower or an arranger, lenders will not have the protection of the anti-fraud provisions
of the federal securities laws, as would be the case for bonds or stocks. Instead, in such cases, lenders generally rely on the contractual
provisions in the loan agreement itself, and common-law fraud protections under applicable state law.
Variable
or Floating Rate Instruments.
Variable or floating rate instruments are securities that provide for a periodic adjustment in the interest rate paid on the obligation.
The interest rates for securities with variable interest rates are readjusted on set dates (such as the last day of the month or calendar
quarter) and the interest rates for securities with floating rates are reset whenever a specified interest rate change occurs. Variable
or floating interest rates generally reduce changes in the market price of securities from their original purchase price because, upon
readjustment, such rates approximate market rates. Accordingly, as market interest rates decrease or increase, the potential for capital
appreciation or depreciation is less for variable or floating rate securities than for fixed rate obligations.
LIBOR
Transition Risk.
An underlying fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”)
as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks
can lend and borrow from one another in the relevant currency on an unsecured basis. In the years following the 2008 financial crisis,
the integrity of LIBOR was increasingly questioned because several banks contributing to its calculation were accused of rate manipulation
and because of a general contraction in the unsecured interbank lending market. As a result, regulators and financial industry working
groups in
several
jurisdictions have worked over the past several years to identify alternative reference rates (“ARRs”) to replace LIBOR and
to assist with the transition to the new ARRs. For example, the Federal Reserve Bank of New York has identified the Secured Overnight
Financing Rate (“SOFR”) as the intended replacement to USD LIBOR and foreign regulators have proposed other interbank offered
rates, such as the Sterling Overnight Index Average
(“SONIA”)
and other replacement rates,
which could also be adopted. Consequently, the publication of
most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to
allow for an orderly transition away from these rates. Additionally, key regulators have instructed banking institutions to cease entering
into new contracts that reference these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on an underlying fund and the instruments in which an underlying fund invests. For example, there can be no assurance
that the composition or characteristics of any ARRs or financial instruments in which an underlying fund invests that utilize ARRs will
be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
Additionally, although regulators have generally prohibited banking institutions from entering into new contracts that reference those
USD LIBOR settings that continue to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments
that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and
implemented into these instruments when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy”
USD LIBOR instruments held by an underlying fund could result in losses to an underlying fund.
Liquidity
Risk.
An underlying fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire
investment in such investments. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is
privately placed and not traded in any public market or is otherwise restricted from trading. Liquid securities can become illiquid during
periods of market stress. If a significant amount of an underlying fund’s securities become illiquid, an underlying fund may not
be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of an underlying fund’s portfolio may be affected by changes in
the stock markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets
may experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-sized companies, growth or value stocks,
or stocks of companies in a particular industry), fund share
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Select Risk: Moderately Conservative Investor Fund
values
may fluctuate more in response to events affecting the market for those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” certain underlying funds are “passive” investors and therefore do not utilize investing strategies that seek
returns in excess of their respective Underlying Index. Therefore, an underlying fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
If a specific security is removed from an Underlying Index, certain underlying funds may be forced to sell shares of the security at an
inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate
mix of securities for any particular economic cycle. Unlike with an actively managed fund, the Adviser does not use techniques or defensive
strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and
economic conditions, an underlying fund’s performance could be lower than other types of mutual funds with investment advisers that
actively manage their portfolio assets to take advantage of market opportunities.
Foreign
Securities Risk.
The value of an underlying fund's foreign investments may be adversely affected by political and social instability in the home countries
of the issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which an underlying fund could lose its entire investments in a certain market) and the possible adoption of foreign
governmental restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S.
companies, including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud
or corruption. Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies
making it more difficult for an underlying fund’s adviser to evaluate those companies. The laws of certain countries may put limits
on an underlying fund’s ability to recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security,
or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due
to the size of the market or other factors. Changes in political and economic factors in one country or region could adversely affect
conditions in another country or region. Investments in foreign securities may also expose an underlying fund to time-zone arbitrage risk.
At times, an underlying fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse
events that occur in that country or region. Unless an underlying fund has hedged its foreign currency exposure, foreign securities risk
also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign
currency (or other instruments through which an underlying fund has exposure to foreign currencies) to decline in value. Currency exchange
rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. For instance,
currency forward contracts, if used, could reduce performance if there are unanticipated changes in currency exchange rates.
Foreign
Government Debt Risk. Investments
in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those
relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment
of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and an underlying
fund may have limited recourse in the event of a default against the defaulting government. A foreign government debtor’s willingness
or ability to repay principal and pay interest in a timely manner may be affected by, among other factors, its cash flow situation, the
extent of its foreign currency reserves, the availability of sufficient foreign
exchange,
the relative size of the debt burden, the foreign government debtor’s policy toward its principal international lenders and local
political constraints. Certain issuers of foreign government debt may be dependent on disbursements from foreign governments, multinational
agencies and other entities to reduce principal and interest arrearages on their debt. Without the approval of debt holders, some governmental
debtors have in the past been able to reschedule or restructure their debt payments or declare moratoria on payments.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede an underlying fund’s ability to evaluate such companies. In addition, certain emerging market countries
may impose material limitations on Public Company Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities,
which can hinder the PCAOB’s ability to engage in independent oversight or inspection of accounting firms located in or operating
in certain emerging markets. There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market countries
may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries
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Select Risk: Moderately Conservative Investor Fund
have
been engaged in programs to sell all or part of their interests in government-owned or controlled enterprises. However, in certain emerging
market countries, the ability of foreign entities to participate in privatization programs may be limited by local law. There can be no
assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Growth
Investing Risk. Growth companies are companies whose earnings
and stock prices are expected to grow at a faster rate than the overall market. If a growth company’s earnings or stock price fails
to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline sharply.
Growth companies can be new or established companies that may be entering a growth cycle in their business and therefore may experience
greater stock price fluctuations and risks of loss than larger, more established companies. Their anticipated growth may come from developing
new products or services or from expanding into new or growing markets. Growth companies may be applying new technologies, new or improved
distribution methods or new business models that could enable them to capture an important or dominant market position. They may have
a special area of expertise or the ability to take advantage of changes in demographic or other factors in a more profitable way. Newer
growth companies generally tend to invest a large part of their earnings in research, development or capital assets. Although newer growth
companies may not pay any dividends for some time, their stocks may be valued because of their potential for price increases. Growth investing
has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth investing is out
of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price and the securities
of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may also be more volatile
than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for an underlying fund to dispose of its holdings at an acceptable price when it wants to sell them.
In addition, investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities
(this is sometimes referred to as “price arbitrage”), which could interfere with the efficient management of an underlying
fund. Since small- and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends
for some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in
a small- or mid-cap company, if any gain is realized at all. The relative sizes of companies may change over time as the securities market
changes, and an underlying fund is not required to sell the securities of companies whose market capitalizations have grown or decreased
due to market fluctuations.
Preferred
Securities Risk.
Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred stock has a
set dividend rate and ranks ahead of common stocks and behind debt securities in claims for dividends and for assets of the issuer in
a liquidation or bankruptcy. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital
structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred
securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s
financial condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Convertible
Securities Risk.
The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the
value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be
able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or
the market’s perception of the issuer’s creditworthiness. Convertible securities can be converted into or exchanged for a
set amount of common stock of an issuer within a particular period of time at a specified price or according to a price formula. Convertible
debt securities pay interest and convertible preferred stocks pay dividends until they mature or are converted, exchanged or redeemed.
Some convertible debt securities may be considered “equity equivalents” because of the feature that makes them convertible
into common stock. Since a convertible security derives a portion of its value from the common stock into which it may be converted, a
convertible security is also subject to the same types of market and issuer risks that apply to the underlying common stock. In addition,
certain convertible securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain
triggering events. These convertible securities are subject to an increased risk of loss and are generally subordinate in rank to other
debt obligations of the issuer. Convertible securities may be rated below investment grade and therefore considered to have more speculative
characteristics and greater susceptibility to default or decline in market value than investment grade securities.
Rule
144A Securities and Other Exempt Securities Risk. An underlying
fund may invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption
from registration under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically
may be resold only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers,
or in limited quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration.
Although such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company
Act of 1940, as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities
at a particular time, an underlying fund may have difficulty selling such securities at a desirable time or price. As a result, an underlying
fund’s investment in such securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities
may require their qualified institutional buyers (such as an underlying fund) to keep certain offering information confidential, which
could adversely affect the ability of an underlying fund to sell such securities.
Restricted
Securities Risk.
Limitations on the resale of restricted securities may have an adverse effect on their marketability, and may prevent an underlying fund
from disposing of them promptly at reasonable prices. There can be no assurance that a trading market will exist at any time for any particular
restricted security. Transaction costs may be higher for restricted securities. Also, restricted securities may be difficult to value
13 Invesco
Select Risk: Moderately Conservative Investor Fund
because
market quotations may not be readily available, and the securities may have significant volatility. In addition, an underlying fund may
get only limited information about the issuer of a restricted security and therefore may be less able to predict a loss.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions are subject to market risk as the value or yield of a security at delivery may be more or
less than the purchase price or the yield generally available on securities when delivery occurs. In addition, an underlying fund is subject
to counterparty risk because it relies on the buyer or seller, as the case may be, to consummate the transaction, and failure by the counterparty
to complete the transaction may result in an underlying fund missing the opportunity of obtaining a price or yield considered to be advantageous.
These transactions have a leveraging effect on an underlying fund because an underlying fund commits to purchase securities that it does
not have to pay for until a later date. These investments therefore increase an underlying fund’s overall investment exposure and,
as a result, its volatility. Typically, no income accrues on securities an underlying fund has committed to purchase prior to the time
delivery of the securities is made.
Derivatives
Risk.
A derivative is an instrument whose value depends largely on (and is derived from) the value of an underlying security, currency, commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial
contracts between an underlying fund and a counterparty. When an underlying fund is owed money on an OTC derivative, an underlying fund
is dependent on the counterparty to pay or, in some cases, deliver the underlying asset, unless an underlying fund can otherwise sell
its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers
and their creditworthiness (and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally.
In addition, in the event that a counterparty becomes bankrupt or insolvent, an underlying fund’s ability to recover the collateral
that an underlying fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange,
an underlying fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a guarantor for each
contractual obligation under such derivatives) for payment on derivative instruments for which an underlying fund is owed money.
◾
Leverage
Risk.
Many derivatives do not require a payment up front equal to the economic exposure created by holding a position in the derivative, which
creates a form of leverage. As a result, an adverse change in the value of the underlying asset could result in an underlying fund sustaining
a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have
the potential for unlimited loss, regardless
of the size of an underlying fund’s initial investment. Leverage may therefore make
an underlying fund’s returns more volatile
and increase the risk of loss. In certain market conditions, losses
on derivative instruments can grow larger while the value of an underlying fund’s other assets fall, resulting in an underlying
fund’s derivative positions becoming a larger percentage of an underlying fund’s investments.
◾
Liquidity
Risk.
There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments
such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during
times of financial or market stress. Derivative
instruments
may therefore be less liquid than more traditional investments and an underlying fund may be unable to sell or exit its derivative positions
at a desirable time or price. This risk may be more acute under adverse market conditions, during which an underlying fund may be most
in need of liquidating its derivative positions. To the extent that an underlying fund is unable to exit a derivative position because
of market illiquidity, an underlying fund may not be able to prevent further losses of value in its derivatives holdings and the liquidity
of an underlying fund and its ability to meet redemption requests may be impaired to the extent that a substantial portion of an underlying
fund’s otherwise liquid assets must be used as margin. Another consequence of illiquidity is that an underlying fund may be required
to hold a derivative instrument to maturity and take or make delivery of the underlying asset that an underlying fund’s adviser
would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency
contracts are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency
movements will not be accurately predicted or do not correspond accurately to changes in the value of an underlying fund's holdings, which
could result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated
changes in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of
the currency increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Forward
Contracts Risk. The projection of short-term currency market movements
is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. The precise matching of the
amounts under forward contracts and the value of the securities involved generally will not be possible because the future value of securities
denominated in foreign currencies will change as a consequence of market movements between the date the forward contract is entered into
and the date it is sold. Investments in forward contracts involve the risk that anticipated currency movements will not be accurately
predicted, causing an underlying fund to sustain losses on these contracts and to pay additional transaction costs.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. An underlying fund may be disadvantaged if it is prohibited from executing a trade outside the daily
permissible price movement.
◾
Options
Risk. If an underlying fund sells a put option, there is a risk
that an underlying fund may be required to buy the underlying investment at a disadvantageous price. If an underlying fund sells a call
option, there is a risk that an underlying fund may be required to sell the underlying investment at a disadvantageous price. If an underlying
fund sells a call option on an investment that an underlying fund owns (a “covered call”) and the investment has increased
in value when the option is exercised, an underlying fund will be required to sell the investment at the call price and will not be able
to realize any of the investment’s value above the call price. Options may involve economic leverage, which could result in greater
price volatility than other investments.
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Select Risk: Moderately Conservative Investor Fund
◾
“Structured”
Notes Risk. Structured notes are subject to interest rate risk.
They are also subject to credit risk with respect both to the issuer and, if applicable, to the underlying security or obligor. If the
underlying investment or index does not perform as anticipated, the structured note might pay less interest than the stated coupon payment
or repay less principal upon maturity. The price of structured notes may be very volatile and they may have a limited trading market,
making it difficult to value them or sell them at an acceptable price. In some cases, an underlying fund may enter into agreements with
an issuer of structured notes to purchase a minimum amount of those notes over time.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for an underlying fund. Swap agreements are privately negotiated in the over-the-counter
market and may be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following
execution of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and an underlying
fund faces the central clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing
house.
◾
Volatility
Swaps Risks. Volatility swaps are subject to credit risks (if
the counterparty fails to meet its obligations), and the risk that the investment adviser is incorrect in its forecast of volatility for
the underlying security, currency, index or other financial instrument that is the subject of the swap. If the investment adviser is incorrect
in its forecast, an underlying fund would likely be required to make a payment to the counterparty under the swap. Volatility swaps can
have the potential for unlimited losses.
◾
Total
Return Swaps Risk. In a total return swap transaction, one party
agrees to pay the other party an amount equal to the total return on a defined underlying asset or a non-asset reference during a specified
period of time. The underlying asset might be a security or asset or basket of securities or assets or a non-asset reference such as a
securities or other type of index. In return, the other party would make periodic payments based on a fixed or variable interest rate
or on the total return from a different underlying asset or non-asset reference. Total return swaps could result in losses if the
underlying asset or reference does not perform as anticipated. Total return swaps can have the potential for unlimited losses. They are
also subject to counterparty risk. If the counterparty fails to meet its obligations, an underlying fund may lose money.
◾
Other
Risks.
Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the
“Taxes” section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the
character, timing and amount of an underlying fund’s taxable income or gains, and may limit or prevent an underlying fund from using
certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to
implement or require an underlying fund to change its investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that an underlying fund uses derivatives for hedging or to gain or limit exposure to a particular market or
market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being
hedged or the relevant market or market segment, in which case an underlying fund may not realize the intended benefits. There is also
the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no
hedging
benefits at all. An underlying fund’s use of derivatives may be limited by the requirements for taxation of an underlying fund as
a regulated investment company.
Commodity
Risk.
An underlying fund may have investment exposure to the commodities markets and/or a particular sector of the commodities markets, which
may subject an underlying fund to greater volatility than investments in traditional securities, such as stocks and bonds. The commodities
markets may fluctuate widely based on a variety of factors, including changes in overall market movements, domestic and foreign political
and economic events and policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning
interest rates, domestic and foreign inflation rates and investment and trading activities of mutual funds, hedge funds and commodities
funds. Prices of various commodities may also be affected by factors such as drought, floods, weather, livestock disease, embargoes, tariffs
and other regulatory developments. The prices of commodities can also fluctuate widely due to supply and demand disruptions in major producing
or consuming regions and changes in transportation, handling and storage costs. Certain commodities may be produced in a limited number
of countries and may be controlled by a small number of producers or groups of producers. As a result, political, economic and supply
related events in such countries could have a disproportionate impact on the prices of such commodities. Because an underlying fund’s
performance may be linked to the performance of volatile commodities, investors should be willing to assume the risks of potentially significant
fluctuations in the value of an underlying fund’s shares.
Geographic
Focus Risk.
An underlying fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single
country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant
negative impact on an underlying fund’s investment performance.
Sector
Focus Risk.
An underlying fund may from time to time have a significant amount of its assets invested in one market sector or group of related industries.
In this event, an underlying fund’s performance will depend to a greater extent on the overall condition of the sector or group
of industries and there is increased risk that an underlying fund will lose significant value if conditions adversely affect that sector
or group of industries. Information about the Fund’s investment in a market sector or group of industries is available in its annual
and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the SEC.
Issuer-Specific
Changes Risk. The performance of an underlying fund depends on
the performance of individual securities to which an underlying fund has exposure. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management decisions, competitive pressures, changes in technology, expiration
of patent protection, disruptions in supply, labor problems or shortages, corporate restructurings, fraudulent disclosures or other factors.
Issuers may, in times of distress or at their own discretion, decide to reduce or eliminate dividends, which may also cause their stock
prices to decline.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan or other
legislation aimed at addressing financial or economic conditions, the threat of a federal government shutdown, and threats not to increase
or suspend the federal government’s debt limit, may affect investor and consumer confidence, increase volatility in the financial
markets, perhaps suddenly and to a significant degree, result in higher interest rates, and even raise concerns about the U.S. government’s
credit rating and ability to service its debt.
15 Invesco
Select Risk: Moderately Conservative Investor Fund
Such
changes and events may adversely impact an underlying fund’s operations, universe of potential investment options, and return potential.
Management
Risk.
The Fund is actively managed and depends heavily on its Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. Similarly, certain
underlying funds are actively managed and depend heavily on their advisers’ judgments about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for their portfolios. The Fund and certain underlying
funds could experience losses if these judgments prove to be incorrect. There can be no guarantee that the Fund’s Adviser’s
and certain underlying funds’ advisers' investment techniques or investment decisions will produce the desired results. Because
the investment process of the Fund relies heavily on its asset allocation process, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on the Fund’s net asset value. Similarly, because the investment
processes of certain underlying funds rely heavily on their security selection processes, market movements that are counter to the portfolio
managers’ expectations may have a significant adverse effect on certain underlying funds’ net asset values. Additionally,
legislative, regulatory, or tax developments may adversely affect management of the Fund and underlying funds and, therefore, their abilities
to achieve their investment objectives.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other investment portfolios
that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance of the Fund’s day-to-day
management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as successor in interest
to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with
certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to
provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Regulation
under the Commodity Exchange Act
The
Adviser is registered as a “commodity pool operator” (CPO) under the Commodity Exchange Act and the rules of the CFTC and
is subject to CFTC regulation with respect to the Fund. The CFTC has adopted rules regarding the disclosure, reporting and recordkeeping
requirements that apply with respect to the Fund as a result of the Adviser’s registration as a CPO. Generally, these rules allow
for substituted compliance with CFTC disclosure and shareholder reporting requirements, based on the Adviser’s compliance with comparable
SEC requirements. This means that for most of the CFTC’s disclosure and shareholder reporting requirements applicable to the Adviser
as the Fund’s CPO, the Adviser’s compliance with SEC disclosure and shareholder reporting requirements will be deemed to fulfill
the Adviser’s CFTC compliance obligations. However, as a result of CFTC regulation with respect to the Fund, the Fund may incur
additional compliance and other expenses. The Adviser is also registered as a “commodity trading advisor” (CTA) but, with
respect to the Fund, relies on an exemption from CTA regulation available for a CTA that also serves as the Fund’s CPO.
Adviser
Compensation
The
Adviser does not receive a management fee from the Fund.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for determining the asset class allocation, underlying fund selections and
target weightings for the Fund:
◾
Jeffrey
Bennett, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2019. From 2016 to 2019, he was associated with OppenheimerFunds, a global asset management firm.
◾
Alessio
de Longis, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 2019. Prior to joining Invesco, Mr.
de Longis was associated with OppenheimerFunds, a global asset
management firm, since 2004.
◾
Scott
Hixon, CFA, Portfolio Manager, who has been responsible for the Fund since 2023 and has been associated with Invesco and/or its affiliates
since 1994.
The
portfolio managers are assisted by investment professionals from the
Invesco Investment Solutions Team. Members of the team may change from time to time.
The
underlying funds are managed by portfolio managers.
More
information on the Fund’s portfolio managers and the portfolio managers
managing the affiliated underlying funds may be found at www.invesco.com/us. The website is not part of this prospectus.
The
Fund’s SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category VI Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, quarterly.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized
16 Invesco
Select Risk: Moderately Conservative Investor Fund
depreciation in value
of investments, the effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund
may experience a current year loss, it may nonetheless distribute prior year capital gains.
17 Invesco
Select Risk: Moderately Conservative Investor Fund
The
financial highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of
the Fund or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)(b)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Return
of
capital
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(c)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed(d)
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets(b)
|
Portfolio
turnover
(e)
|
|
Class
A | |||||||||||||||
|
Year
ended 12/31/22 |
$11.93
|
$0.19
|
$(2.18)
|
$(1.99)
|
$(0.18)
|
$(0.24)
|
$(0.01)
|
$(0.43)
|
$9.51
|
(16.69)%
|
$248,677
|
0.44%
|
0.44%
|
1.83%
|
29%
|
|
Year
ended 12/31/21 |
11.69
|
0.15
|
0.69
|
0.84
|
(0.23)
|
(0.37)
|
—
|
(0.60)
|
11.93
|
7.26
|
331,992
|
0.44
|
0.44
|
1.25
|
28
|
|
Year
ended 12/31/20 |
11.47
|
0.20
|
0.94
|
1.14
|
(0.27)
|
(0.65)
|
—
|
(0.92)
|
11.69
|
10.23
|
300,116
|
0.47
|
0.47
|
1.81
|
86
|
|
Year
ended 12/31/19 |
10.68
|
0.35
|
1.18
|
1.53
|
(0.35)
|
(0.39)
|
—
|
(0.74)
|
11.47
|
14.39
|
257,703
|
0.48
|
0.48
|
3.01
|
28
|
|
Year
ended 12/31/18 |
11.63
|
0.28
|
(0.80)
|
(0.52)
|
(0.28)
|
(0.15)
|
—
|
(0.43)
|
10.68
|
(4.50)
|
210,248
|
0.50
|
0.50
|
2.43
|
23
|
|
| |||||||||||||||
|
Class
C | |||||||||||||||
|
Year
ended 12/31/22 |
11.79
|
0.11
|
(2.15)
|
(2.04)
|
(0.11)
|
(0.24)
|
—
|
(0.35)
|
9.40
|
(17.29)
|
16,084
|
1.19
|
1.19
|
1.08
|
29
|
|
Year
ended 12/31/21 |
11.55
|
0.06
|
0.68
|
0.74
|
(0.13)
|
(0.37)
|
—
|
(0.50)
|
11.79
|
6.53
|
24,758
|
1.19
|
1.19
|
0.50
|
28
|
|
Year
ended 12/31/20 |
11.34
|
0.12
|
0.92
|
1.04
|
(0.18)
|
(0.65)
|
—
|
(0.83)
|
11.55
|
9.40
|
27,569
|
1.22
|
1.22
|
1.06
|
86
|
|
Year
ended 12/31/19 |
10.57
|
0.26
|
1.16
|
1.42
|
(0.26)
|
(0.39)
|
—
|
(0.65)
|
11.34
|
13.45
|
33,282
|
1.23
|
1.23
|
2.26
|
28
|
|
Year
ended 12/31/18 |
11.51
|
0.19
|
(0.79)
|
(0.60)
|
(0.19)
|
(0.15)
|
—
|
(0.34)
|
10.57
|
(5.21)
|
57,060
|
1.25
|
1.25
|
1.68
|
23
|
|
| |||||||||||||||
|
Class
R | |||||||||||||||
|
Year
ended 12/31/22 |
11.88
|
0.16
|
(2.16)
|
(2.00)
|
(0.16)
|
(0.24)
|
(0.01)
|
(0.41)
|
9.47
|
(16.90)
|
8,955
|
0.69
|
0.69
|
1.58
|
29
|
|
Year
ended 12/31/21 |
11.64
|
0.12
|
0.69
|
0.81
|
(0.20)
|
(0.37)
|
—
|
(0.57)
|
11.88
|
7.02
|
10,020
|
0.69
|
0.69
|
1.00
|
28
|
|
Year
ended 12/31/20 |
11.42
|
0.18
|
0.93
|
1.11
|
(0.24)
|
(0.65)
|
—
|
(0.89)
|
11.64
|
9.99
|
7,877
|
0.72
|
0.72
|
1.56
|
86
|
|
Year
ended 12/31/19 |
10.64
|
0.32
|
1.17
|
1.49
|
(0.32)
|
(0.39)
|
—
|
(0.71)
|
11.42
|
14.05
|
7,777
|
0.73
|
0.73
|
2.76
|
28
|
|
Year
ended 12/31/18 |
11.58
|
0.25
|
(0.79)
|
(0.54)
|
(0.25)
|
(0.15)
|
—
|
(0.40)
|
10.64
|
(4.68)
|
7,410
|
0.75
|
0.75
|
2.18
|
23
|
|
| |||||||||||||||
|
Class
S | |||||||||||||||
|
Year
ended 12/31/22 |
11.95
|
0.20
|
(2.19)
|
(1.99)
|
(0.19)
|
(0.24)
|
(0.01)
|
(0.44)
|
9.52
|
(16.66)
|
1,567
|
0.34
|
0.34
|
1.93
|
29
|
|
Year
ended 12/31/21 |
11.70
|
0.16
|
0.70
|
0.86
|
(0.24)
|
(0.37)
|
—
|
(0.61)
|
11.95
|
7.46
|
2,009
|
0.34
|
0.34
|
1.35
|
28
|
|
Year
ended 12/31/20 |
11.48
|
0.22
|
0.93
|
1.15
|
(0.28)
|
(0.65)
|
—
|
(0.93)
|
11.70
|
10.33
|
2,012
|
0.37
|
0.37
|
1.91
|
86
|
|
Year
ended 12/31/19 |
10.70
|
0.36
|
1.17
|
1.53
|
(0.36)
|
(0.39)
|
—
|
(0.75)
|
11.48
|
14.39
|
1,877
|
0.38
|
0.38
|
3.11
|
28
|
|
Year
ended 12/31/18 |
11.64
|
0.29
|
(0.79)
|
(0.50)
|
(0.29)
|
(0.15)
|
—
|
(0.44)
|
10.70
|
(4.31)
|
1,814
|
0.40
|
0.40
|
2.53
|
23
|
|
| |||||||||||||||
|
Class
Y | |||||||||||||||
|
Year
ended 12/31/22 |
11.92
|
0.21
|
(2.17)
|
(1.96)
|
(0.21)
|
(0.24)
|
(0.01)
|
(0.46)
|
9.50
|
(16.49)
|
17,526
|
0.19
|
0.19
|
2.08
|
29
|
|
Year
ended 12/31/21 |
11.67
|
0.18
|
0.70
|
0.88
|
(0.26)
|
(0.37)
|
—
|
(0.63)
|
11.92
|
7.63
|
12,372
|
0.19
|
0.19
|
1.50
|
28
|
|
Year
ended 12/31/20 |
11.45
|
0.23
|
0.93
|
1.16
|
(0.29)
|
(0.65)
|
—
|
(0.94)
|
11.67
|
10.52
|
10,363
|
0.22
|
0.22
|
2.06
|
86
|
|
Year
ended 12/31/19 |
10.67
|
0.37
|
1.18
|
1.55
|
(0.38)
|
(0.39)
|
—
|
(0.77)
|
11.45
|
14.59
|
9,457
|
0.23
|
0.23
|
3.26
|
28
|
|
Year
ended 12/31/18 |
11.62
|
0.31
|
(0.80)
|
(0.49)
|
(0.31)
|
(0.15)
|
—
|
(0.46)
|
10.67
|
(4.27)
|
6,268
|
0.25
|
0.25
|
2.68
|
23
|
|
| |||||||||||||||
|
Class
R5 | |||||||||||||||
|
Year
ended 12/31/22 |
11.99
|
0.22
|
(2.18)
|
(1.96)
|
(0.22)
|
(0.24)
|
(0.01)
|
(0.47)
|
9.56
|
(16.40)
|
96
|
0.12
|
0.12
|
2.15
|
29
|
|
Year
ended 12/31/21 |
11.74
|
0.19
|
0.69
|
0.88
|
(0.26)
|
(0.37)
|
—
|
(0.63)
|
11.99
|
7.65
|
109
|
0.15
|
0.15
|
1.54
|
28
|
|
Year
ended 12/31/20 |
11.52
|
0.24
|
0.93
|
1.17
|
(0.30)
|
(0.65)
|
—
|
(0.95)
|
11.74
|
10.51
|
11
|
0.19
|
0.19
|
2.09
|
86
|
|
Year
ended 12/31/19 |
10.73
|
0.38
|
1.18
|
1.56
|
(0.38)
|
(0.39)
|
—
|
(0.77)
|
11.52
|
14.69
|
11
|
0.19
|
0.20
|
3.30
|
28
|
|
Year
ended 12/31/18 |
11.68
|
0.31
|
(0.80)
|
(0.49)
|
(0.31)
|
(0.15)
|
—
|
(0.46)
|
10.73
|
(4.18)
|
10
|
0.21
|
0.21
|
2.72
|
23
|
|
| |||||||||||||||
|
Class
R6 | |||||||||||||||
|
Year
ended 12/31/22 |
11.98
|
0.22
|
(2.17)
|
(1.95)
|
(0.22)
|
(0.24)
|
(0.01)
|
(0.47)
|
9.56
|
(16.33)
|
46
|
0.12
|
0.12
|
2.15
|
29
|
|
Year
ended 12/31/21 |
11.74
|
0.19
|
0.68
|
0.87
|
(0.26)
|
(0.37)
|
—
|
(0.63)
|
11.98
|
7.56
|
41
|
0.15
|
0.15
|
1.54
|
28
|
|
Year
ended 12/31/20 |
11.52
|
0.24
|
0.93
|
1.17
|
(0.30)
|
(0.65)
|
—
|
(0.95)
|
11.74
|
10.51
|
12
|
0.19
|
0.19
|
2.09
|
86
|
|
Year
ended 12/31/19 |
10.73
|
0.38
|
1.18
|
1.56
|
(0.38)
|
(0.39)
|
—
|
(0.77)
|
11.52
|
14.69
|
10
|
0.19
|
0.20
|
3.30
|
28
|
|
Year
ended 12/31/18 |
11.67
|
0.31
|
(0.79)
|
(0.48)
|
(0.31)
|
(0.15)
|
—
|
(0.46)
|
10.73
|
(4.10)
|
9
|
0.21
|
0.21
|
2.72
|
23
|
|
| |||||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Net
investment income (loss) is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.
Ratio of net investment income (loss) does not include net
investment
income of the underlying funds in which the Fund invests. |
|
(c)
|
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. |
18 Invesco
Select Risk: Moderately Conservative Investor Fund
|
(d)
|
In
addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of
the underlying funds in which the Fund invests. Because
the
underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees
and expenses incurred indirectly by the Fund will vary.
Estimated
underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the
underlying funds and are deducted from the value
of
the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the
Fund’s total return. Estimated acquired fund fees from
underlying
funds 0.45%, 0.49%, 0.51%, 0.51% and 0.53% for the years ended December 31, 2022, 2021, 2020, 2019, and 2018, respectively.
|
|
(e)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
19 Invesco
Select Risk: Moderately Conservative Investor Fund
Hypothetical Investment and Expense Information
In connection with the
final settlement reached between Invesco and certain of its affiliates with certain regulators, including the New York Attorney General’s
Office, the SEC and the Colorado Attorney General’s Office (the settlement) arising out of certain market timing and unfair pricing
allegations made against Invesco and certain of its affiliates, Invesco and certain of its affiliates agreed, among other things, to disclose
certain hypothetical information regarding investment and expense information to Fund shareholders. The chart below is intended to reflect
the annual and cumulative impact of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s
returns over a 10-year period. The example reflects the following:
◾
You
invest $10,000 in the Fund and hold it for the entire 10-year period;
◾
Your
investment has a 5% return before expenses each year;
◾
The
Fund’s current annual expense ratio includes, if applicable, any contractual fee waiver or expense reimbursement that would apply
for the period for which it was committed;
◾
Hypotheticals
both with and without any applicable initial sales charge applied; and
◾
There
is no sales charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio
for the Fund’s classes for any of the years shown. This is only a hypothetical presentation made to illustrate what expenses and
returns would be under the above scenarios; your actual returns and expenses are likely to differ (higher or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
(1.62%)
|
2.43%
|
6.64%
|
11.02%
|
15.58%
|
20.33%
|
25.28%
|
30.43%
|
35.79%
|
41.37%
|
|
End
of Year Balance |
$9,838.40
|
$10,242.75
|
$10,663.73
|
$11,102.01
|
$11,558.30
|
$12,033.35
|
$12,527.92
|
$13,042.82
|
$13,578.88
|
$14,136.97
|
|
Estimated
Annual Expenses |
$635.83
|
$89.36
|
$93.03
|
$96.86
|
$100.84
|
$104.98
|
$109.30
|
$113.79
|
$118.47
|
$123.34
|
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
0.89%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.11%
|
8.39%
|
12.84%
|
17.48%
|
22.31%
|
27.34%
|
32.57%
|
38.02%
|
43.69%
|
49.60%
|
|
End
of Year Balance |
$10,411.00
|
$10,838.89
|
$11,284.37
|
$11,748.16
|
$12,231.01
|
$12,733.70
|
$13,257.06
|
$13,801.92
|
$14,369.18
|
$14,959.75
|
|
Estimated
Annual Expenses |
$90.83
|
$94.56
|
$98.45
|
$102.49
|
$106.71
|
$111.09
|
$115.66
|
$120.41
|
$125.36
|
$130.51
|
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.64%
|
1.64%
|
1.64%
|
1.64%
|
1.64%
|
1.64%
|
1.64%
|
1.64%
|
0.89%
|
0.89%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.36%
|
6.83%
|
10.42%
|
14.13%
|
17.97%
|
21.93%
|
26.03%
|
30.26%
|
35.62%
|
41.19%
|
|
End
of Year Balance |
$10,336.00
|
$10,683.29
|
$11,042.25
|
$11,413.27
|
$11,796.75
|
$12,193.12
|
$12,602.81
|
$13,026.27
|
$13,561.65
|
$14,119.03
|
|
Estimated
Annual Expenses |
$166.76
|
$172.36
|
$178.15
|
$184.14
|
$190.32
|
$196.72
|
$203.33
|
$210.16
|
$118.32
|
$123.18
|
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.14%
|
1.14%
|
1.14%
|
1.14%
|
1.14%
|
1.14%
|
1.14%
|
1.14%
|
1.14%
|
1.14%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.86%
|
7.87%
|
12.03%
|
16.36%
|
20.85%
|
25.51%
|
30.36%
|
35.39%
|
40.62%
|
46.04%
|
|
End
of Year Balance |
$10,386.00
|
$10,786.90
|
$11,203.27
|
$11,635.72
|
$12,084.86
|
$12,551.33
|
$13,035.82
|
$13,539.00
|
$14,061.60
|
$14,604.38
|
|
Estimated
Annual Expenses |
$116.20
|
$120.69
|
$125.34
|
$130.18
|
$135.21
|
$140.43
|
$145.85
|
$151.48
|
$157.32
|
$163.40
|
|
| ||||||||||
|
Class
S |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.21%
|
8.60%
|
13.17%
|
17.93%
|
22.90%
|
28.07%
|
33.46%
|
39.08%
|
44.94%
|
51.04%
|
|
End
of Year Balance |
$10,421.00
|
$10,859.72
|
$11,316.92
|
$11,793.36
|
$12,289.86
|
$12,807.26
|
$13,346.45
|
$13,908.34
|
$14,493.88
|
$15,104.07
|
|
Estimated
Annual Expenses |
$80.66
|
$84.06
|
$87.60
|
$91.29
|
$95.13
|
$99.13
|
$103.31
|
$107.66
|
$112.19
|
$116.91
|
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.64%
|
0.64%
|
0.64%
|
0.64%
|
0.64%
|
0.64%
|
0.64%
|
0.64%
|
0.64%
|
0.64%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.36%
|
8.91%
|
13.66%
|
18.61%
|
23.79%
|
29.18%
|
34.82%
|
40.69%
|
46.83%
|
53.23%
|
|
End
of Year Balance |
$10,436.00
|
$10,891.01
|
$11,365.86
|
$11,861.41
|
$12,378.57
|
$12,918.27
|
$13,481.51
|
$14,069.30
|
$14,682.72
|
$15,322.89
|
|
Estimated
Annual Expenses |
$65.40
|
$68.25
|
$71.22
|
$74.33
|
$77.57
|
$80.95
|
$84.48
|
$88.16
|
$92.01
|
$96.02
|
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.43%
|
9.06%
|
13.89%
|
18.93%
|
24.20%
|
29.70%
|
35.45%
|
41.45%
|
47.72%
|
54.26%
|
|
End
of Year Balance |
$10,443.00
|
$10,905.62
|
$11,388.74
|
$11,893.27
|
$12,420.14
|
$12,970.35
|
$13,544.94
|
$14,144.98
|
$14,771.60
|
$15,425.98
|
|
Estimated
Annual Expenses |
$58.26
|
$60.84
|
$63.54
|
$66.35
|
$69.29
|
$72.36
|
$75.57
|
$78.92
|
$82.41
|
$86.06
|
|
| ||||||||||
20 Invesco
Select Risk: Moderately Conservative Investor Fund
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.43%
|
9.06%
|
13.89%
|
18.93%
|
24.20%
|
29.70%
|
35.45%
|
41.45%
|
47.72%
|
54.26%
|
|
End
of Year Balance |
$10,443.00
|
$10,905.62
|
$11,388.74
|
$11,893.27
|
$12,420.14
|
$12,970.35
|
$13,544.94
|
$14,144.98
|
$14,771.60
|
$15,425.98
|
|
Estimated
Annual Expenses |
$58.26
|
$60.84
|
$63.54
|
$66.35
|
$69.29
|
$72.36
|
$75.57
|
$78.92
|
$82.41
|
$86.06
|
|
| ||||||||||
1
Your
actual expenses may be higher or lower than those shown.
2
The
hypothetical assumes you hold your investment for a full 10 years. Therefore, any applicable deferred sales charge that might apply in
year one for Class C has not been deducted.
21 Invesco
Select Risk: Moderately Conservative Investor Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Select Risk: Moderately Conservative Investor Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
CAL-PRO-1
|
Prospectus
April
28,
2023
Class:
A (GTSAX), C (GTSDX),
Investor (GTSIX), R (GTSRX),
Y (GTSYX), R5 (GTSVX),
R6 (GTSFX)
Invesco
Small Cap Growth Fund
Investor
Class shares offered by this prospectus are offered only to grandfathered investors.
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
As
of the close of business on March 18, 2002, the Fund limited public sales of its shares to certain investors.
Table of Contents
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1
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4
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6
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6
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7
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7
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7
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7
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7
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8
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10
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-16
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A-17
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A-17
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A-18
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A-21
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A-24
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A-25
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A-26
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A-27
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|
Back
Cover |
Invesco
Small Cap Growth Fund
Fund Summary
Investment
Objective(s)
The
Fund’s investment objective is long-term growth of capital.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
Shareholder Fees (fees paid directly from your investment)
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
|
Class:
|
A
|
C
|
R
|
Y
|
Investor
|
R5
|
R6
|
|
Management
Fees |
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
0.68%
|
|
| |||||||
|
Distribution
and/or Service (12b-1)
Fees
|
0.25
|
1.00
|
0.50
|
None
|
0.22
|
None
|
None
|
|
| |||||||
|
Other
Expenses |
0.23
|
0.23
|
0.23
|
0.23
|
0.23
|
0.13
|
0.06
|
|
| |||||||
|
Total
Annual Fund Operating
Expenses
|
1.16
|
1.91
|
1.41
|
0.91
|
1.13
|
0.81
|
0.74
|
|
| |||||||
1
A contingent deferred sales charge
may apply in some cases. See “Shareholder Account Information-Contingent Deferred Sales Charges (CDSCs).”
Example.
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
You
would pay the following expenses if you did not redeem your shares:
Portfolio
Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 44%
of the average value of its portfolio.
Principal
Investment Strategies of the Fund
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of
small-capitalization issuers and in derivatives and other instruments that have economic characteristics similar to such securities. The
Fund invests primarily in equity securities. The principal type of equity security in which the Fund invests is common stock.
The
Fund considers an issuer to be a small-capitalization issuer if it has a
market capitalization, at the time of purchase, no larger than the market capitalization of the largest capitalized issuer included in
the Russell 2000®
Index during the most recent 11-month period (based on month-end
data) plus the most recent data during the current month.
The
Fund may invest up to 15% of its net assets in real estate investment
trusts (REITs).
The
Fund may also invest up to 25% of its net assets in foreign securities
of companies located in developing and emerging markets countries as well as in developed markets.
The
Fund invests primarily in securities that are considered by the Fund’s
portfolio managers to have potential for earnings or revenue growth. In selecting investments, the portfolio managers utilize a disciplined
portfolio construction process that aligns the Fund with the Russell 2000®
Growth Index, which the portfolio managers believe represents the small-cap growth asset class. The Fund uses this index as a guide in
structuring the portfolio, but the Fund is not an index fund. The security selection process is based on a three-step process that includes
fundamental, valuation and timeliness analysis.
◾
Fundamental
analysis involves building a series of financial models, as well as conducting in-depth interviews with management. The goal is to find
high quality, fundamentally sound issuers operating in an attractive industry.
◾
Valuation
analysis focuses on identifying attractively valued securities given their growth potential over a one- to two-year horizon.
◾
Timeliness
analysis is used to help identify the “timeliness” of a purchase. In this step, relative price strength, trading volume characteristics,
and trend analysis are reviewed for signs of deterioration. If a security shows signs of deterioration, it will not be considered as a
candidate for the portfolio.
The
portfolio managers consider selling a security if the investment thesis
for owning the security is no longer valid, the stock reaches its price target or timeliness factors indicate that the risk/return characteristics
of the stock as viewed in the market are no longer attractive.
1 Invesco
Small Cap Growth Fund
Principal
Risks of Investing in the Fund
As
with any mutual fund investment, loss of money is a risk of investing. An
investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. The risks associated with an investment in the Fund can increase during times of significant
market volatility. The principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, military conflict, acts of terrorism,
economic crisis or adverse investor sentiment generally. During
a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance
that specific investments held by the Fund will rise in value.
Investing
in Stocks Risk.
The value of the Fund’s portfolio may be affected by changes in the stock markets. Stock markets may experience significant short-term
volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income markets may have unexpected
negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets may move
in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Growth
Investing Risk.
If a growth company’s earnings or stock price fails to increase as anticipated, or if its business plans do not produce the expected
results, the value of its securities may decline sharply. Growth companies may be newer or smaller companies that may experience greater
stock price fluctuations and risks of loss than larger, more established companies. Newer growth companies tend to retain a large part
of their earnings for research, development or investments in capital assets. Therefore, they may not pay any dividends for some time.
Growth investing has gone in and out of favor during past market cycles and is likely to continue to do so. During periods when growth
investing is out of favor or when markets are unstable, it may be more difficult to sell growth company securities at an acceptable price
and the securities of growth companies may underperform the securities of value companies or the overall stock market. Growth stocks may
also be more volatile than other securities because of investor speculation.
Small-Capitalization
Companies Risk.
Investing in securities of small-capitalization companies involves greater risk than customarily is associated with investing in larger,
more established companies. Stocks of small-capitalization companies tend to be more vulnerable to changing market conditions, may have
little or no operating history or track record of success, may have more limited product lines and markets, less experienced management
and fewer financial resources than larger companies. These companies’ securities may be more volatile and less
liquid
than those of more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience
more abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded
over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical
for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject
to wider price fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell
them. Since small-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for
some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a
small-cap company, if any gain is realized at all.
Sector
Focus Risk. The Fund may from time to time have a significant
amount of its assets invested in one market sector or group of related industries. In this event, the Fund’s performance will depend
to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose
significant value if conditions adversely affect that sector or group of industries.
REIT
Risk/Real Estate Risk.
Investments in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological
factors that affect property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap
companies, may be more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt
obligations held by the Fund, the Fund may acquire real estate directly, which involves additional risks such as environmental liabilities;
difficulty in valuing and selling the real estate; and economic or regulatory changes.
Foreign
Securities Risk.
The Fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies,
difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible
seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a
certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign companies generally
may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing and accounting
controls, and may therefore be more susceptible to fraud or corruption. There may be less public information available about foreign companies
than U.S. companies, making it difficult to evaluate those foreign companies. Unless the Fund has hedged its foreign currency exposure,
foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities
denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value.
Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful.
Emerging
Market Securities Risk.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic
instability, uncertain 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable
to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure,
financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to
evaluate such companies.
2 Invesco
Small Cap Growth Fund
Securities
law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability
to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets,
restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and
practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the
ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited
by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures,
unexpected market closures, and lack of timely information.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management
of the Fund and, therefore, the ability of the Fund to achieve its investment objective.
Performance
Information
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The bar chart shows changes in the performance
of the Fund from year to year as of December 31. The performance table compares the Fund's performance to that of a style-specific benchmark,
a peer group benchmark comprised of funds with investment objectives and strategies similar to those of the Fund and a broad-based securities
market benchmark (in that order).
The
Fund's past performance (before and after taxes) is not necessarily an indication of its future performance.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and
capital gains and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund's website at www.invesco.com/us.
Annual Total Returns
The
bar chart does not reflect sales loads. If it did, the annual total returns shown would be lower.
|
Class
A |
Period
Ended |
Returns
|
|
Best
Quarter |
June
30, 2020 |
34.24%
|
|
Worst
Quarter |
June
30, 2022 |
-22.53%
|
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
10/18/1995
|
-39.13%
|
3.01%
|
9.08%
|
|
Return
After Taxes on Distributions |
|
-39.68
|
-0.40
|
5.99
|
|
Return
After Taxes on Distributions and Sale of
Fund
Shares |
|
-22.85
|
2.57
|
7.17
|
|
| ||||
|
Class
C |
5/3/1999
|
-36.67
|
3.39
|
9.04
|
|
| ||||
|
Class
R |
6/3/2002
|
-35.79
|
3.91
|
9.41
|
|
| ||||
|
Class
Y |
10/3/2008
|
-35.44
|
4.44
|
9.97
|
|
| ||||
|
Investor
Class |
4/7/2006
|
-35.58
|
4.22
|
9.72
|
|
| ||||
|
Class
R5 |
3/15/2002
|
-35.39
|
4.55
|
10.10
|
|
| ||||
|
Class
R6 |
9/24/2012
|
-35.35
|
4.64
|
10.20
|
|
| ||||
|
Russell
2000®
Growth Index (reflects
no
deduction
for fees, expenses or taxes) |
|
-26.36
|
3.51
|
9.20
|
|
| ||||
|
Lipper
Small-Cap Growth Funds Index |
|
-26.54
|
7.09
|
10.45
|
|
| ||||
|
S&P
500®
Index (reflects no deduction for fees,
expenses
or taxes) |
|
-18.11
|
9.42
|
12.56
|
|
| ||||
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes.
Actual after-tax returns depend on an investor's tax
situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or individual retirement accounts.
After-tax
returns are shown for Class A shares only and after-tax returns for other classes will vary.
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Juan
Hartsfield, CFA |
Portfolio
Manager (lead) |
2004
|
|
| ||
|
Clay
Manley, CFA |
Portfolio
Manager |
2008
|
|
| ||
|
Justin
Sander, CFA |
Portfolio
Manager |
2020
|
|
| ||
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Investor
Class shares of the Fund are offered only to grandfathered investors.
The minimum investments for Class A, C, R, Y and Investor Class shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
3 Invesco
Small Cap Growth Fund
under
the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is long-term growth of capital. The Fund’s investment objective may be changed by the Board of
Trustees (the Board) without shareholder approval.
The
Fund invests, under normal circumstances, at least 80% of its net assets
(plus any borrowings for investment purposes) in securities of small-capitalization issuers and in derivatives and other instruments that
have economic characteristics similar to such securities. The Fund invests primarily in equity securities. The principal type of equity
security in which the Fund invests is common stock.
The
Fund considers an issuer to be a small-capitalization issuer if it has a
market capitalization, at the time of purchase, no larger than the market capitalization of the largest capitalized issuer included in
the Russell 2000®
Index during the most recent 11-month period (based on month-end
data) plus the most recent data during the current month. The Russell 2000®
Index measures the performance of the 2,000 smallest issuers in
the Russell 3000®
Index, which measures the performance of the 3,000 largest U.S. issuers. The Russell 2000®
Index is widely regarded as representative of small capitalization issuers. A company’s “market capitalization” is the
value of its outstanding stock.
The
Fund may invest up to 15% of its net assets in REITs. REITs pool investor’s
funds for investment primarily in commercial real estate properties or real estate related loans. REITs generally derive their income
from rents on underlying properties or interest on the underlying loans, and their value is impacted by changes in the value of the underlying
property or changes in interest rates affecting the underlying loans owned by the REITs.
The
Fund may also invest up to 25% of its net assets in foreign securities
of companies located in developing and emerging markets countries as well as in developed markets.
The
Fund invests primarily in securities that are considered by the Fund’s
portfolio managers to have potential for earnings or revenue growth. In selecting investments, the portfolio managers utilize a disciplined
portfolio construction process that aligns the Fund with the Russell 2000®
Growth Index, which the portfolio managers believe represents the small-cap growth asset class. The security selection process is based
on a three-step process that includes fundamental, valuation and timeliness analysis.
◾
Fundamental
analysis involves building a series of financial models, as well as conducting in-depth interviews with management. The goal is to find
high quality, fundamentally sound issuers operating in an attractive industry.
◾
Valuation
analysis focuses on identifying attractively valued securities given their growth potential over a one- to two-year horizon.
◾
Timeliness
analysis is used to help identify the “timeliness” of a purchase. In this step, relative price strength, trading volume characteristics,
and trend analysis are reviewed for signs of deterioration. If a security shows signs of deterioration, it will not be considered as a
candidate for the portfolio.
The
portfolio managers consider selling a security if the investment thesis
for owning the security is no longer valid, the stock reaches its price target or timeliness factors indicate that the risk/return characteristics
of the stock as viewed in the market are no longer attractive.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund are:
Market
Risk.
The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes
rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general market conditions that 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, or adverse investor sentiment generally. The value of
the Fund’s investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector,
such as changes in production costs and competitive conditions within an industry. In addition, natural or environmental disasters, widespread
disease or other public health issues, war, military conflict, acts of terrorism,
economic crisis or other events may have a significant impact
on the value of the Fund’s investments, as well as the financial markets and global economy generally. Such circumstances may also
impact the ability of the Adviser to effectively implement the Fund’s investment strategy. During a general downturn in the financial
markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held
by the Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including the United States, as well as North Atlantic Treaty
Organization (NATO)
member countries and the European Union, issued broad-ranging economic sanctions against Russia. The war in Ukraine (and the potential
for further sanctions in response to
4 Invesco
Small Cap Growth Fund
Russia’s
continued military activity) may
escalate. These
and other corresponding events, have had, and could continue to have, severe negative effects on regional and global economic and financial
markets, including increased volatility, reduced liquidity, and overall uncertainty. The negative impacts may be particularly acute in
certain sectors including, but not limited to, energy and financials. Russia may take additional countermeasures or retaliatory actions
(including cyberattacks), which could exacerbate negative consequences on global financial markets. The duration of the conflict and corresponding
sanctions and related events cannot be predicted. The foregoing may result in a negative impact on Fund performance and the value of an
investment in the Fund, even beyond any direct investment exposure the Fund may have to Russian issuers or the adjoining geographic regions.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest
in a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Growth
Investing Risk. Growth companies are companies whose earnings
and stock prices are expected to grow at a faster rate than the overall market. If a growth company’s earnings or stock price fails
to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline sharply.
Growth companies can be new or established companies that may be entering a growth cycle in their business and therefore may experience
greater stock price fluctuations and risks of loss than larger, more established companies. Their
anticipated
growth may come from developing new products or services or from expanding into new or growing markets. Growth companies may be applying
new technologies, new or improved distribution methods or new business models that could enable them to capture an important or dominant
market position. They may have a special area of expertise or the ability to take advantage of changes in demographic or other factors
in a more profitable way. Newer growth companies generally tend to invest a large part of their earnings in research, development or capital
assets. Although newer growth companies may not pay any dividends for some time, their stocks may be valued because of their potential
for price increases. Growth investing has gone in and out of favor during past market cycles and is likely to continue to do so. During
periods when growth investing is out of favor or when markets are unstable, it may be more difficult to sell growth company securities
at an acceptable price and the securities of growth companies may underperform the securities of value companies or the overall stock
market. Growth stocks may also be more volatile than other securities because of investor speculation.
Small-Capitalization
Companies Risk.
Investing in securities of small-capitalization companies involves greater risk than customarily is associated with investing in larger,
more established companies. Stocks of small-capitalization companies tend to be more vulnerable to changing market conditions, may have
little or no operating history or track record of success, may have more limited product lines and markets, less experienced management
and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those
of more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more
abrupt and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded
over-the-counter or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical
for securities of larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject
to wider price fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell
them. Since small-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for
some time, particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a
small-cap company, if any gain is realized at all.
Sector
Focus Risk. The Fund may from time to time have a significant
amount of its assets invested in one market sector or group of related industries. The prices of stocks of issuers in a sector or group
of industries may
go up and down in response to changes in economic conditions, government regulations, availability of basic resources or supplies, or
other events that affect that industry or sector more than others. In this event, the Fund’s performance will depend to a greater
extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value
if conditions adversely affect that sector or group of industries. Information about the Fund’s investment in a market sector or
group of industries is available in its annual and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the
SEC.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Real estate companies, including REITs or similar structures, tend to be small- and mid-cap
companies and their shares may be more volatile and less liquid than larger companies. The value of investments in real estate related
companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial covenants
related thereto, whether the company carries adequate insurance and environmental factors. If a real estate related company defaults on
certain types of debt obligations held by the Fund, the Fund may acquire real estate directly, which involves additional risks such as
5 Invesco
Small Cap Growth Fund
environmental
liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Foreign
Securities Risk.
The value of the Fund's foreign investments may be adversely affected by political and social instability in the home countries of the
issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations
in those countries. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer
or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental
restrictions such as exchange controls. Foreign companies generally may be subject to less stringent regulations than U.S. companies,
including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud or corruption.
Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies making it
more difficult for the Adviser to evaluate those companies. The laws of certain countries may put limits on the Fund’s ability to
recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security, or any of their agents, goes bankrupt.
Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to the size of the market or other factors.
Changes in political and economic factors in one country or region could adversely affect conditions in another country or region. Investments
in foreign securities may also expose the Fund to time-zone arbitrage risk. At times, the Fund may emphasize investments in a particular
country or region and may be subject to greater risks from adverse events that occur in that country or region. Unless the Fund has hedged
its foreign currency exposure, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may
cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign
currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies,
if used, are not always successful. For instance, currency forward contracts, if used by the Fund, could reduce performance if there are
unanticipated changes in currency exchange rates.
Emerging
Market Securities Risk.
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 have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be subject to lower trading volume and greater price fluctuations
than companies in more developed markets. Unexpected market closures may also affect investments in emerging markets. Settlement procedures
may differ from those of more established securities markets, and settlement delays may result in the inability to invest assets or dispose
of portfolio securities in a timely manner. As a result there could be subsequent declines in value of the portfolio security, a decrease
in the level of liquidity of the portfolio, or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede the Fund’s ability to evaluate such companies. In addition, certain emerging market countries may
impose material limitations on Public
Company
Accounting Oversight Board (PCAOB) inspection, investigation and enforcement capabilities, which can hinder the PCAOB’s ability
to engage in independent oversight or inspection of accounting firms located in or operating in certain emerging markets.
There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of emerging market issuers meet PCAOB standards.
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. Emerging market countries also may have less developed legal systems allowing for enforcement
of private property rights and/or redress for injuries to private property (including bankruptcy, confiscatory taxation, expropriation,
nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets
from the country, protectionist measures and practices such as share blocking). Certain governments may require approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce such actions, may be limited and shareholder claims may
be difficult or impossible to pursue. In addition, the taxation systems at the federal, regional and local levels in emerging market countries
may be less transparent and inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud
than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources. The governments in some emerging market countries have been engaged in programs to sell all or part of their interests
in government-owned or controlled enterprises. However, in certain emerging market countries, the ability of foreign entities to participate
in privatization programs may be limited by local law. There can be no assurance that privatization programs will be successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Management
Risk.
The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. There can be no guarantee that the Adviser’s investment techniques or investment
decisions will produce the desired results. Additionally, legislative, regulatory, or tax developments may affect the investments or investment
strategies available to the Adviser in connection with managing the Fund, which may also adversely affect the ability of the Fund to achieve
its investment objective.
Portfolio
Holdings
A
description of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is
available at www.invesco.com/us.
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other investment portfolios
that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance of the Fund’s day-to-day
management. The Adviser is located at 1331 Spring Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as successor in interest
to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to
6 Invesco
Small Cap Growth Fund
provide
discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers and the
Sub-Advisory Agreements are described in the SAI.
Adviser
Compensation
During
the fiscal year ended December 31, 2022, the Adviser received compensation of 0.68% of the Fund's average daily net assets, after fee
waiver and/or expense reimbursement, if any.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Juan
Hartsfield, CFA (lead manager), Portfolio Manager, who has been responsible for the Fund since 2004 and has been associated with Invesco
and/or its affiliates since 2004.
◾
Clay
Manley, CFA, Portfolio Manager, who has been responsible for the Fund since 2008 and has been associated with Invesco and/or its affiliates
since 2001.
◾
Justin
Sander, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2013.
A
lead or co-lead manager generally has final authority over all
aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio construction
techniques, portfolio risk assessment, and the management of daily cash flows in accordance with portfolio holdings. The degree to which
a lead or co-lead manager may perform these functions, and the nature of these functions, may change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital
gains
distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows. During a
time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the effect of
which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a current year
loss, it may nonetheless distribute prior year capital gains.
Limited
Fund Offering
Effective
as of the close of business on March 18, 2002, the Fund closed to all new investors except in the limited circumstances described below.
Investors should note that the Fund reserves the right to refuse any order that might disrupt the efficient management of the Fund.
Investors
who were invested in the Fund on March 18, 2002, may continue
to make additional purchases and exchanges in their accounts.
During this limited offering, the Fund reserves the right, in
its discretion, to accept purchases and exchanges: from certain investors which may include, among others, corporations, endowments, foundations
and insurance companies; from RIA or bank trust firms with eligible assets described above that launch a new offering platform or move
assets from an existing platform to a new platform, and in other limited circumstances after a determination by the Adviser that such
action is not detrimental to the Fund and its shareholders. The Fund reserves the right to change this policy at any time.
Any
Employer Sponsored Retirement and Benefit Plan or its affiliated plans
may continue to make additional purchases and exchanges of Fund shares and may add new accounts at the plan level that may purchase Fund
shares if the Employer Sponsored Retirement and Benefit Plan or its affiliated plan had invested in the Fund as of March 18, 2002. Existing
registered investment advisor (RIA) and bank trust firms that have an investment allocation to the Fund in a fee-based, wrap or advisory
account, can continue to add new clients, purchase shares, and exchange into the Fund. The Fund will not be available to new RIA and bank
trust firms. The Fund may also accept investments by 529 college savings plans managed by the Adviser during this limited offering.
The
Fund may resume sale of shares to new investors on a future date if
the Adviser determines it is appropriate.
7 Invesco
Small Cap Growth Fund
The
financial highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of
the Fund or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
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
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 | ||||||||||||
|
Year
ended 12/31/22 |
$36.33
|
$(0.14)
|
$(12.79)
|
$(12.93)
|
$(0.81)
|
$22.59
|
(35.60)%
|
$541,922
|
1.16%
|
1.16%
|
(0.54)%
|
44%
|
|
Year
ended 12/31/21 |
47.78
|
(0.43)
|
3.12
|
2.69
|
(14.14)
|
36.33
|
7.33
|
988,307
|
1.14
|
1.14
|
(0.86)
|
35
|
|
Year
ended 12/31/20 |
35.35
|
(0.35)
|
19.40
|
19.05
|
(6.62)
|
47.78
|
57.00
|
1,047,921
|
1.15
|
1.15
|
(0.90)
|
51
|
|
Year
ended 12/31/19 |
31.02
|
(0.09)
|
7.59
|
7.50
|
(3.17)
|
35.35
|
24.32
|
499,603
|
1.17
|
1.17
|
(0.25)
|
31
|
|
Year
ended 12/31/18 |
37.31
|
(0.18)
|
(3.08)
|
(3.26)
|
(3.03)
|
31.02
|
(9.04)
|
502,315
|
1.18
|
1.18
|
(0.47)
|
21
|
|
| ||||||||||||
|
Class
C | ||||||||||||
|
Year
ended 12/31/22 |
12.36
|
(0.11)
|
(4.35)
|
(4.46)
|
(0.81)
|
7.09
|
(36.10)
|
7,123
|
1.91
|
1.91
|
(1.29)
|
44
|
|
Year
ended 12/31/21 |
25.63
|
(0.41)
|
1.28
|
0.87
|
(14.14)
|
12.36
|
6.55(d)
|
15,850
|
1.86(d)
|
1.86(d)
|
(1.58)(d)
|
35
|
|
Year
ended 12/31/20 |
21.39
|
(0.38)
|
11.24
|
10.86
|
(6.62)
|
25.63
|
55.86(d)
|
21,567
|
1.87(d)
|
1.87(d)
|
(1.62)(d)
|
51
|
|
Year
ended 12/31/19 |
19.95
|
(0.23)
|
4.84
|
4.61
|
(3.17)
|
21.39
|
23.32
|
3,686
|
1.92
|
1.92
|
(1.00)
|
31
|
|
Year
ended 12/31/18 |
25.33
|
(0.32)
|
(2.03)
|
(2.35)
|
(3.03)
|
19.95
|
(9.72)
|
11,053
|
1.93
|
1.93
|
(1.22)
|
21
|
|
| ||||||||||||
|
Class
R | ||||||||||||
|
Year
ended 12/31/22 |
30.57
|
(0.17)
|
(10.77)
|
(10.94)
|
(0.81)
|
18.82
|
(35.79)
|
63,161
|
1.41
|
1.41
|
(0.79)
|
44
|
|
Year
ended 12/31/21 |
42.52
|
(0.50)
|
2.69
|
2.19
|
(14.14)
|
30.57
|
7.07
|
112,217
|
1.39
|
1.39
|
(1.11)
|
35
|
|
Year
ended 12/31/20 |
32.08
|
(0.39)
|
17.45
|
17.06
|
(6.62)
|
42.52
|
56.59
|
137,020
|
1.40
|
1.40
|
(1.15)
|
51
|
|
Year
ended 12/31/19 |
28.46
|
(0.17)
|
6.96
|
6.79
|
(3.17)
|
32.08
|
24.01
|
118,302
|
1.42
|
1.42
|
(0.50)
|
31
|
|
Year
ended 12/31/18 |
34.58
|
(0.26)
|
(2.83)
|
(3.09)
|
(3.03)
|
28.46
|
(9.27)
|
124,450
|
1.43
|
1.43
|
(0.72)
|
21
|
|
| ||||||||||||
|
Class
Y | ||||||||||||
|
Year
ended 12/31/22 |
39.11
|
(0.08)
|
(13.78)
|
(13.86)
|
(0.81)
|
24.44
|
(35.44)
|
129,518
|
0.91
|
0.91
|
(0.29)
|
44
|
|
Year
ended 12/31/21 |
50.24
|
(0.32)
|
3.33
|
3.01
|
(14.14)
|
39.11
|
7.61
|
274,782
|
0.89
|
0.89
|
(0.61)
|
35
|
|
Year
ended 12/31/20 |
36.83
|
(0.26)
|
20.29
|
20.03
|
(6.62)
|
50.24
|
57.38
|
301,301
|
0.90
|
0.90
|
(0.65)
|
51
|
|
Year
ended 12/31/19 |
32.14
|
(0.00)
|
7.86
|
7.86
|
(3.17)
|
36.83
|
24.59
|
217,477
|
0.92
|
0.92
|
0.00
|
31
|
|
Year
ended 12/31/18 |
38.43
|
(0.08)
|
(3.18)
|
(3.26)
|
(3.03)
|
32.14
|
(8.77)
|
216,750
|
0.93
|
0.93
|
(0.22)
|
21
|
|
| ||||||||||||
|
Investor
Class | ||||||||||||
|
Year
ended 12/31/22 |
40.08
|
(0.14)
|
(14.12)
|
(14.26)
|
(0.81)
|
25.01
|
(35.58)(e)
|
144,075
|
1.13(e)
|
1.13(e)
|
(0.51)(e)
|
44
|
|
Year
ended 12/31/21 |
51.24
|
(0.42)
|
3.40
|
2.98
|
(14.14)
|
40.08
|
7.41(e)
|
246,961
|
1.05(e)
|
1.05(e)
|
(0.77)(e)
|
35
|
|
Year
ended 12/31/20 |
37.52
|
(0.33)
|
20.67
|
20.34
|
(6.62)
|
51.24
|
57.11(e)
|
249,837
|
1.07(e)
|
1.07(e)
|
(0.82)(e)
|
51
|
|
Year
ended 12/31/19 |
32.76
|
(0.08)
|
8.01
|
7.93
|
(3.17)
|
37.52
|
24.34
|
187,171
|
1.13
|
1.13
|
(0.21)
|
31
|
|
Year
ended 12/31/18 |
39.21
|
(0.19)
|
(3.23)
|
(3.42)
|
(3.03)
|
32.76
|
(9.01)
|
168,567
|
1.18
|
1.18
|
(0.47)
|
21
|
|
| ||||||||||||
|
Class
R5 | ||||||||||||
|
Year
ended 12/31/22 |
46.32
|
(0.06)
|
(16.33)
|
(16.39)
|
(0.81)
|
29.12
|
(35.39)
|
737,830
|
0.81
|
0.81
|
(0.19)
|
44
|
|
Year
ended 12/31/21 |
56.89
|
(0.31)
|
3.88
|
3.57
|
(14.14)
|
46.32
|
7.71
|
1,445,168
|
0.79
|
0.79
|
(0.51)
|
35
|
|
Year
ended 12/31/20 |
41.01
|
(0.24)
|
22.74
|
22.50
|
(6.62)
|
56.89
|
57.56
|
1,564,134
|
0.80
|
0.80
|
(0.55)
|
51
|
|
Year
ended 12/31/19 |
35.45
|
0.05
|
8.68
|
8.73
|
(3.17)
|
41.01
|
24.75
|
1,156,887
|
0.80
|
0.80
|
0.12
|
31
|
|
Year
ended 12/31/18 |
42.02
|
(0.04)
|
(3.50)
|
(3.54)
|
(3.03)
|
35.45
|
(8.69)
|
1,192,199
|
0.81
|
0.81
|
(0.10)
|
21
|
|
| ||||||||||||
|
Class
R6 | ||||||||||||
|
Year
ended 12/31/22 |
46.94
|
(0.04)
|
(16.55)
|
(16.59)
|
(0.81)
|
29.54
|
(35.35)
|
653,838
|
0.74
|
0.74
|
(0.12)
|
44
|
|
Year
ended 12/31/21 |
57.42
|
(0.26)
|
3.92
|
3.66
|
(14.14)
|
46.94
|
7.80
|
948,527
|
0.70
|
0.70
|
(0.42)
|
35
|
|
Year
ended 12/31/20 |
41.31
|
(0.20)
|
22.93
|
22.73
|
(6.62)
|
57.42
|
57.70
|
836,400
|
0.71
|
0.71
|
(0.46)
|
51
|
|
Year
ended 12/31/19 |
35.66
|
0.09
|
8.73
|
8.82
|
(3.17)
|
41.31
|
24.86
|
497,160
|
0.71
|
0.71
|
0.21
|
31
|
|
Year
ended 12/31/18 |
42.20
|
0.00
|
(3.51)
|
(3.51)
|
(3.03)
|
35.66
|
(8.58)
|
353,791
|
0.71
|
0.71
|
0.00
|
21
|
|
| ||||||||||||
|
(a)
|
Based
on 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)
|
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 0.97% for Class C for the years ended December 31,
2021
and 2020, 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 0.22%, 0.16% and 0.17% for Investor Class for the
years
ended December 31, 2022, 2021 and 2020, respectively. |
8 Invesco
Small Cap Growth Fund
Hypothetical Investment and Expense Information
In connection with the
final settlement reached between Invesco and certain of its affiliates with certain regulators, including the New York Attorney General’s
Office, the SEC and the Colorado Attorney General’s Office (the settlement) arising out of certain market timing and unfair pricing
allegations made against Invesco and certain of its affiliates, Invesco and certain of its affiliates agreed, among other things, to disclose
certain hypothetical information regarding investment and expense information to Fund shareholders. The chart below is intended to reflect
the annual and cumulative impact of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s
returns over a 10-year period. The example reflects the following:
◾
You
invest $10,000 in the Fund and hold it for the entire 10-year period;
◾
Your
investment has a 5% return before expenses each year;
◾
The
Fund’s current annual expense ratio includes, if applicable, any contractual fee waiver or expense reimbursement that would apply
for the period for which it was committed;
◾
Hypotheticals
both with and without any applicable initial sales charge applied; and
◾
There
is no sales charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio
for the Fund’s classes for any of the years shown. This is only a hypothetical presentation made to illustrate what expenses and
returns would be under the above scenarios; your actual returns and expenses are likely to differ (higher or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
(1.87%)
|
1.90%
|
5.81%
|
9.87%
|
14.09%
|
18.47%
|
23.02%
|
27.75%
|
32.65%
|
37.75%
|
|
End
of Year Balance |
$9,812.88
|
$10,189.69
|
$10,580.98
|
$10,987.29
|
$11,409.20
|
$11,847.31
|
$12,302.25
|
$12,774.66
|
$13,265.20
|
$13,774.59
|
|
Estimated
Annual Expenses |
$661.72
|
$116.01
|
$120.47
|
$125.10
|
$129.90
|
$134.89
|
$140.07
|
$145.45
|
$151.03
|
$156.83
|
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge)
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
1.16%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.84%
|
7.83%
|
11.97%
|
16.27%
|
20.73%
|
25.37%
|
30.18%
|
35.18%
|
40.37%
|
45.76%
|
|
End
of Year Balance |
$10,384.00
|
$10,782.75
|
$11,196.80
|
$11,626.76
|
$12,073.23
|
$12,536.84
|
$13,018.25
|
$13,518.16
|
$14,037.25
|
$14,576.28
|
|
Estimated
Annual Expenses |
$118.23
|
$122.77
|
$127.48
|
$132.38
|
$137.46
|
$142.74
|
$148.22
|
$153.91
|
$159.82
|
$165.96
|
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.91%
|
1.91%
|
1.91%
|
1.91%
|
1.91%
|
1.91%
|
1.91%
|
1.91%
|
1.16%
|
1.16%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.09%
|
6.28%
|
9.56%
|
12.94%
|
16.43%
|
20.03%
|
23.74%
|
27.57%
|
32.46%
|
37.55%
|
|
End
of Year Balance |
$10,309.00
|
$10,627.55
|
$10,955.94
|
$11,294.48
|
$11,643.48
|
$12,003.26
|
$12,374.16
|
$12,756.52
|
$13,246.37
|
$13,755.03
|
|
Estimated
Annual Expenses |
$193.95
|
$199.94
|
$206.12
|
$212.49
|
$219.06
|
$225.83
|
$232.80
|
$240.00
|
$150.82
|
$156.61
|
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.41%
|
1.41%
|
1.41%
|
1.41%
|
1.41%
|
1.41%
|
1.41%
|
1.41%
|
1.41%
|
1.41%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.59%
|
7.31%
|
11.16%
|
15.15%
|
19.29%
|
23.57%
|
28.00%
|
32.60%
|
37.36%
|
42.29%
|
|
End
of Year Balance |
$10,359.00
|
$10,730.89
|
$11,116.13
|
$11,515.20
|
$11,928.59
|
$12,356.83
|
$12,800.44
|
$13,259.97
|
$13,736.01
|
$14,229.13
|
|
Estimated
Annual Expenses |
$143.53
|
$148.68
|
$154.02
|
$159.55
|
$165.28
|
$171.21
|
$177.36
|
$183.73
|
$190.32
|
$197.15
|
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.91%
|
0.91%
|
0.91%
|
0.91%
|
0.91%
|
0.91%
|
0.91%
|
0.91%
|
0.91%
|
0.91%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.09%
|
8.35%
|
12.78%
|
17.39%
|
22.19%
|
27.19%
|
32.39%
|
37.81%
|
43.44%
|
49.31%
|
|
End
of Year Balance |
$10,409.00
|
$10,834.73
|
$11,277.87
|
$11,739.13
|
$12,219.26
|
$12,719.03
|
$13,239.24
|
$13,780.73
|
$14,344.36
|
$14,931.04
|
|
Estimated
Annual Expenses |
$92.86
|
$96.66
|
$100.61
|
$104.73
|
$109.01
|
$113.47
|
$118.11
|
$122.94
|
$127.97
|
$133.20
|
|
| ||||||||||
|
Investor
Class |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.13%
|
1.13%
|
1.13%
|
1.13%
|
1.13%
|
1.13%
|
1.13%
|
1.13%
|
1.13%
|
1.13%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
3.87%
|
7.89%
|
12.07%
|
16.40%
|
20.91%
|
25.59%
|
30.45%
|
35.49%
|
40.74%
|
46.18%
|
|
End
of Year Balance |
$10,387.00
|
$10,788.98
|
$11,206.51
|
$11,640.20
|
$12,090.68
|
$12,558.59
|
$13,044.60
|
$13,549.43
|
$14,073.79
|
$14,618.45
|
|
Estimated
Annual Expenses |
$115.19
|
$119.64
|
$124.27
|
$129.08
|
$134.08
|
$139.27
|
$144.66
|
$150.26
|
$156.07
|
$162.11
|
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
0.81%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.19%
|
8.56%
|
13.10%
|
17.84%
|
22.78%
|
27.93%
|
33.29%
|
38.87%
|
44.69%
|
50.75%
|
|
End
of Year Balance |
$10,419.00
|
$10,855.56
|
$11,310.40
|
$11,784.31
|
$12,278.07
|
$12,792.52
|
$13,328.53
|
$13,887.00
|
$14,468.86
|
$15,075.11
|
|
Estimated
Annual Expenses |
$82.70
|
$86.16
|
$89.77
|
$93.53
|
$97.45
|
$101.54
|
$105.79
|
$110.22
|
$114.84
|
$119.65
|
|
| ||||||||||
10 Invesco
Small Cap Growth Fund
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
0.74%
|
|
Cumulative
Return Before Expenses |
5.00%
|
10.25%
|
15.76%
|
21.55%
|
27.63%
|
34.01%
|
40.71%
|
47.75%
|
55.13%
|
62.89%
|
|
Cumulative
Return After Expenses |
4.26%
|
8.70%
|
13.33%
|
18.16%
|
23.19%
|
28.44%
|
33.91%
|
39.62%
|
45.57%
|
51.77%
|
|
End
of Year Balance |
$10,426.00
|
$10,870.15
|
$11,333.22
|
$11,816.01
|
$12,319.37
|
$12,844.18
|
$13,391.34
|
$13,961.81
|
$14,556.58
|
$15,176.69
|
|
Estimated
Annual Expenses |
$75.58
|
$78.80
|
$82.15
|
$85.65
|
$89.30
|
$93.11
|
$97.07
|
$101.21
|
$105.52
|
$110.01
|
|
| ||||||||||
1
Your
actual expenses may be higher or lower than those shown.
2
The
hypothetical assumes you hold your investment for a full 10 years. Therefore, any applicable deferred sales charge that might apply in
year one for Class C has not been deducted.
11 Invesco
Small Cap Growth Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco
Funds or Funds). The following information is about all of the Invesco Funds (except Invesco SMA High Yield Bond Fund and Invesco SMA
Municipal Bond Fund) and their share classes that have different fees and expenses. The prospectuses for Invesco SMA High Yield Bond Fund
and Invesco SMA Municipal Bond Fund contain information relevant to those funds.
Some
investments in the Funds are made through accounts that are maintained
by intermediaries (and not in the name of an individual investor) and some investments are made indirectly through products that use the
Funds as underlying investments, such as Retirement and Benefit Plans, funds of funds, qualified tuition plans, and variable insurance
contracts (these products are generally referred to as conduit investment vehicles). If shares of the Funds are held in an account maintained
by an intermediary or in the name of a conduit investment vehicle (and not in the name of an individual investor), the intermediary or
conduit investment vehicle may impose rules that differ from, and/or charge a transaction or other fee in addition to, those described
in this prospectus. As a result, the availability of certain share classes and/or shareholder privileges or services described in this
prospectus will depend on the policies, procedures and trading platforms of the financial intermediary or conduit investment vehicle.
Accordingly, through your financial intermediary you may be invested in a share class that is subject to higher annual fees and expenses
than other share classes that are offered in this prospectus. Investing in a share class subject to higher annual fees and expenses may
have an adverse impact on your investment return. Please consult your financial adviser to consider your options, including your eligibility
to qualify for the share classes and/or shareholder privileges or services described in this prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial intermediaries or for notifying shareholders of any changes
to them. Please consult your financial adviser or other financial intermediary for details.
Unless
otherwise provided, the following are certain defined terms used throughout
this prospectus:
◾
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under section
401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees’ beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
◾
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on
the Internet at www.invesco.com/us. To access your account, go to the tab for “Account & Services,” then click on “Accounts
Overview.” For additional information about Invesco Funds, consult the Fund’s prospectus and SAI, which are available on that
same website or upon request free of charge. The website is not part of this prospectus.
Choosing
a Share Class
Each
Fund may offer multiple classes of shares and not all Funds offer all share classes discussed herein. Each class represents an interest
in the same portfolio of investments. Certain classes have higher expenses than other classes which may lower the return on your investment
when compared to a less expensive class. In deciding which class of shares to purchase, you should consider the following attributes of
the various share classes, among other things: (i) the eligibility requirements that apply to purchases of a particular class and
any eligibility requirements of your financial intermediary, (ii) the initial sales charges and contingent deferred sales charges
(CDSCs), if any, applicable to the class, (iii) the 12b-1 fee, if any, paid by the class, and (iv) any services you may receive
from a financial intermediary. Please contact your financial adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
A-1 The
Invesco Funds
MCF—04/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short Term Municipal Fund do not have initial sales charges
or CDSCs on redemptions in most cases.
2
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund Class A shares and
Invesco Short Duration Inflation Protected Fund Class A2 shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class
A shares have a 12b-1 fee of 0.10%.
3
The
12b-1 fee for Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses of the Fund—Annual Fund Operating
Expenses” section of this prospectus reflects the actual 12b-1 fees paid by a Fund.
4
Your
financial intermediary may have additional eligibility criteria for Class R shares. Please see the “Financial Intermediary- Specific
Arrangements” section of this prospectus for further information.
In addition
to the share classes shown in the chart above, the following Funds offer the following additional share classes further described in this
prospectus:
◾
Investor
Class shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco Energy Fund, Invesco EQV European Equity Fund,
Invesco Health Care Fund, Invesco High Yield Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco Income Advantage
U.S. Fund, Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco Real Estate Fund, Invesco Small Cap Growth Fund,
Invesco Technology Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio.
◾
Class
A2 shares: Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class
P shares: Invesco Summit Fund;
◾
Class
S shares: Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund; and
◾
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio.
Share
Class Eligibility
The
availability of certain share classes will depend on how you purchased your shares. Intermediaries may have different policies regarding
the availability of certain share classes than those described below. You should consult your financial adviser to consider your options,
including your eligibility to qualify for the share classes described below. The Fund is not responsible for eligibility requirements
imposed by financial intermediaries or for notifying shareholders of any changes to them. See “Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific eligibility requirements. Please
consult with your financial intermediary if you have any questions regarding their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A,
C and Invesco Cash Reserve Shares are generally available to all retail investors, including individuals, trusts, corporations, business
and charitable organizations and Retirement and Benefit Plans. Investors may only open an account to purchase Class C shares if they have
appointed a financial intermediary that allows for new accounts in Class C shares to be opened. This restriction does not apply to Employer
Sponsored Retirement and Benefit Plans. The share classes offer different fee structures that are intended to compensate financial intermediaries
for services provided in connection with the sale of shares and continued maintenance of the customer relationship. You should consider
the services provided by your financial adviser and any other financial intermediaries who will be involved in the servicing of your account
when choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund, are closed to
new investors. All references in this “Shareholder Account Information” section of this prospectus to Class A shares shall
include Class A2 shares, unless otherwise noted.
Class AX
and CX Shares
Class AX
and CX shares are closed to new investors. Only investors who have continuously maintained an account in Class AX or CX of a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Retirement and Benefit Plans. Certain financial intermediaries have additional eligibility criteria regarding
Class R shares. If you received Class R shares as a result of a merger or reorganization of a predecessor fund into any of the Funds,
you will be permitted to make additional Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley
A-2 The
Invesco Funds
funds,
states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans, financial intermediaries
and corporations investing for their own accounts, endowments and foundations. For information regarding investment minimums for Class
R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts that generally process no
more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except
as noted below, each Fund has adopted a service and/or distribution plan pursuant to SEC Rule 12b-1. A 12b-1 plan allows a Fund to pay
distribution and service fees to Invesco Distributors to compensate or reimburse, as applicable, Invesco Distributors for its efforts
in connection with the sale and distribution of the Fund’s shares, all or a substantial portion of which are paid to the dealer
of record. Because the Funds pay these fees out of their assets on an ongoing basis, over time these fees will increase the cost of your
investment and may cause you to pay more than the maximum permitted initial sales charges described in this prospectus.
The
following Funds and share classes do not have 12b-1 plans:
◾
Invesco
Limited Term Municipal Income Fund, Class A2 shares.
◾
Invesco
Government Money Market Fund, Investor Class shares.
◾
Invesco
Premier Portfolio, Investor Class shares.
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares.
◾
All
Funds, Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay
distribution and/or service fees up to the following annual rates with respect to each Fund’s average daily net assets with respect
to such class (subject to the exceptions noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco
Cash Reserve Shares: 0.15%
◾
Investor
Class shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular
Fund’s 12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The
Funds are grouped into six categories for determining initial sales charges. The “Other Information” section of each Fund’s
prospectus will tell you the sales charge category in which the Fund is classified. Additionally, Class A shares of Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund do not have initial sales charges. As used below, the term “offering price”
with respect to all categories of Class A shares includes the initial sales charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or
V Funds or $250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase) the initial sales charge set forth below will
be waived; though your shares will be subject to a 1% CDSC if you don’t hold such shares for at least 18 months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.75
|
2.83
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
4.25%
|
4.44%
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
|
$250,000
but less than |
$500,000
|
2.50
|
2.56
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
2.00
|
2.04
|
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
1.00%
|
1.01%
|
|
| |||
|
$100,000
but less than |
$250,000
|
0.75
|
0.76
|
|
| |||
|
$250,000
but less than |
$1,000,000
|
0.50
|
0.50
|
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
2.50%
|
2.56%
|
|
| |||
|
$100,000
but less than |
$250,000
|
1.75
|
1.78
|
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$100,000
|
3.25%
|
3.36%
|
|
| |||
|
$100,000
but less than |
$250,000
|
2.75
|
2.83
|
|
| |||
|
$250,000
but less than |
$500,000
|
1.75
|
1.78
|
|
| |||
|
$500,000
but less than |
$1,000,000
|
1.50
|
1.52
|
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment
| |
|
Less
than |
$50,000
|
5.50%
|
5.82%
|
|
| |||
|
$50,000
but less than |
$100,000
|
4.50
|
4.71
|
|
| |||
|
$100,000
but less than |
$250,000
|
3.50
|
3.63
|
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The
availability of certain sales charge waivers and discounts will depend on how you purchase your shares. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”)
waivers, exchanges or conversions between classes or exchanges between Funds; account investment minimums; and minimum account balances,
which are discussed below. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers, discounts or
other special arrangements. For waivers and discounts not available through a particular intermediary, shareholders should consult their
financial advisor to consider their options.
The
following types of investors may purchase Class A shares without paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors
who purchase shares through a fee-based advisory account with an approved financial intermediary. In a fee based advisory program, a financial
intermediary typically charges each investor a fee based on the value of the investor’s account in exchange for servicing that account.
◾
Employer
Sponsored Retirement and Benefit Plans maintained on retirement platforms or by the Funds’ transfer agent or its affiliates (but
not including plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder):
◾
with
assets of at least $1 million; or
◾
with
at least 100 employees eligible to participate in the plan; or
◾
that
execute plan level or multiple-plan level transactions through a single omnibus account per Fund.
◾
Any
investor who purchases his or her shares with the proceeds of an in kind rollover, transfer or distribution from a Retirement and Benefit
Plan where the account being funded by such rollover is to be maintained by the same financial intermediary, trustee, custodian or administrator
that maintained the plan from which the rollover distribution funding such rollover originated, or an affiliate thereof.
◾
Investors
who own Investor Class shares of a Fund, who purchase Class A shares of a different Fund through the same account in which the Investor
Class Shares were first purchased.
◾
Funds
of funds or other pooled investment vehicles.
◾
Insurance
company separate accounts.
◾
Any
current or retired trustee, director, officer or employee of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
◾
Any
registered representative or employee of any financial intermediary who has an agreement with Invesco Distributors to sell shares of the
Invesco Funds (this includes any members of his or her immediate family).
◾
Any
investor purchasing shares through a financial intermediary that has a written arrangement with the Funds’ distributor in which
the Funds’ distributor has agreed to participate in a no transaction fee program in which the financial intermediary will make Class A
shares available without the imposition of a sales charge.
◾
Former
shareholders of Atlas Strategic Income Fund who purchase shares of a Fund into which shareholders of Invesco Global Strategic Income Fund
may exchange if permitted by the intermediary’s policies.
◾
Former
shareholders of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of a Fund into which shareholders of Invesco
Main Street Fund may exchange if permitted by the intermediary’s policies.
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging
shares of one Fund that were previously assessed a sales charge for shares of another Fund;
◾
purchasing
shares in connection with the repayment of an Employer Sponsored Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C, Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to the distribution of a Retirement and Benefit Plan maintained by
the Funds’ transfer agent or one of its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or former relationship with the Invesco Funds. For
additional information about such eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding
exchanges and conversions, account investment minimums, minimum account balances, and share class eligibility requirements that follow
are only available to clients of those financial intermediaries specifically named below and to Invesco funds that offer the share class(es)
to which the arrangements relate. Please contact your financial intermediary for questions regarding your eligibility and for more information
with respect to your financial intermediary’s sales charge waivers, discounts, investment minimums, minimum account balances, and
share class eligibility requirements and other special arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
A-4 The
Invesco Funds
requirements
and other special arrangements are implemented and administered by each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial intermediary-specific waivers, discounts, investment minimums,
minimum account balances and other special arrangements and that you are placed in the proper share class for which you are eligible through
your financial intermediary. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s
financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or
discounts or other financial intermediary-specific arrangements as disclosed herein. Please contact your financial intermediary for more
information regarding the sales charge waivers, discounts, investment minimums, minimum account balances, share class eligibility requirements
and other special arrangements available to you and to ensure that you understand the steps you must take to qualify for such arrangements.
The terms and availability of these waivers and special arrangements may be amended or terminated at any time.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage account are eligible for the following
front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not
any other fund within the same fund family).
◾
Shares
exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent
that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following
a shorter holding period, that waiver will apply.
◾
Employees
and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
◾
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA
and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s
spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse
of a covered family member who is a lineal descendant.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e. Rights of Reinstatement).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will
be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
D.A.
Davidson &. Co. (“D.A. Davidson”)
Shareholders
purchasing fund shares including existing fund shareholders through
a D.A. Davidson
platform or account, or through an introducing broker-dealer or independent registered investment advisor for which D.A. Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the following sales charge waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End
Sales Charge Waivers on Class A Shares available at D.A. Davidson
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.
◾
Employees
and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies
and procedures.
◾
CDSC
Waivers on Classes A and C shares available at D.A. Davidson
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA or other qualifying retirement accounts as described in the fund’s prospectus
beginning in the calendar year the shareholder turns age 72.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A.
Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
A-6 The
Invesco Funds
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney brokerage
account will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”),
or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
◾
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family).
◾
Shares
purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following
the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (i.e., right of reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans.
◾
Shares
acquired through a right of reinstatement.
◾
Class
C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant
to Janney’s policies and procedures.
◾
CDSC
waivers on Class A and C shares available at Janney
◾
Shares
sold upon the death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
◾
Shares
purchased in connection with a return of excess contributions from an IRA account.
◾
Shares
sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age
based on applicable IRS regulations as described in the fund’s Prospectus.
◾
Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
◾
Shares
acquired through a right of reinstatement.
◾
Shares
exchanged into the same share class of a different fund.
◾
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in the fund’s Prospectus.
◾
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets
not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase
of any relationship, holdings of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor), or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its
policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires
from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.
◾
Shares
purchased in an Edward Jones fee-based program.
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject
to the applicable sales charge as disclosed in the prospectus.
◾
Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or
earlier at the discretion of Edward Jones.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
Death
or disability of the shareholder.
◾
Systematic
withdrawals with up to 10% per year of the account value.
◾
Return
of excess contributions from an Individual Retirement Account (“IRA”).
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder
reaches the qualified age based on applicable IRS regulations.
◾
Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
◾
Shares
exchanged in an Edward Jones fee-based program.
◾
Shares
acquired through NAV reinstatement.
◾
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) held by the shareholder or in an account
grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform.
The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets
at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase
or acquired in exchange for shares purchased with a sales charge.
◾
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the
plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
◾
ROA
is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
◾
Letters
of Intent (“LOI”) allow shareholders to receive sales charge and breakpoint discounts for purchases shareholders intend to
make over a 13- month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market
value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period
to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in
the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before
the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges
will be adjusted if LOI is not met.
◾
If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
Minimum
Balances
•
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that
are not included in this policy:
○
A
fee-based account held on an Edward Jones platform
○
A
529 account held on an Edward Jones platform
○
An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•
At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of
the same fund.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
A-9 The
Invesco Funds
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco
Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not
A-10 The
Invesco Funds
paid
a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will be assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase
order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance
A-11 The
Invesco Funds
with
the USA PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify and record your identifying information.
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
||
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
A-12 The
Invesco Funds
processed.
Additionally, federal law requires that the Funds verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under
A-13 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first class U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all redemption orders submitted after the effective
time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive upon redemption of your shares. In
the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be
cancelled without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will
need to submit a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not
A-14 The
Invesco Funds
required
to net the purchase and redemption orders. However, the intermediary is permitted to apply the liquidity fee to the net amount of redemptions
(even if the purchase order was received prior to the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum Distribution for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the
Funds’ transfer agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
A-15 The
Invesco Funds
Minimum
Account Balance (Applicable for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Retirement and
Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another Fund effectuated on the same day. Any gain on the transaction
may be subject to federal income tax. Accordingly, the procedures and processes applicable to redemptions of Fund shares, as discussed
under the heading “Redeeming Shares” above, will apply. Before requesting an exchange, review the prospectus of the Fund you
wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund and Invesco Dynamic Credit Opportunity Fund
(the “Interval Funds”) are closed-end interval funds
that continuously offer their shares pursuant to the terms and conditions of their prospectuses. The Adviser is the investment adviser
for the Interval Funds. As with the Invesco
Funds,
you generally may exchange your shares of any Invesco Fund for the same class of shares of the Interval Funds. Please refer to the prospectuses
for the Interval Funds for more information, including the share classes offered by each Interval Fund and limitations on exchanges out
of the Interval Funds.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
A-16 The
Invesco Funds
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the
basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco Government Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that
were not acquired through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or short-term trading. These Funds may alter their policies at any time
without prior notice to shareholders if the Adviser believes the change would be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
A-17 The
Invesco Funds
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they
believe
is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking the shareholder to take
action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities in the shareholder’s
accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases and redemptions of shares having a
value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within the same Fund; non-discretionary
rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees; small balance account fees; plan-level
omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions; transfers of assets; Retirement
and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the
A-18 The
Invesco Funds
prevailing
exchange rates on that day. The Funds (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio) value securities and assets for which market quotations are unavailable at
their “fair value,” which is described below. Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Fund values securities and assets for which market
quotations are unavailable at their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the
security ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because
of the passage of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates
its net asset value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such as political events or natural disasters, or market events,
such as a significant movement in the U.S. market. Where the Adviser determines that the closing price of the security is stale or unreliable,
the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. 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
are significant and may make the closing price unreliable, the Fund may fair value the security. If an issuer specific event has occurred
that the Adviser determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security
at fair value. The Adviser also relies on a screening process from a pricing vendor 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 market value as of the close of
the NYSE. For foreign securities where the Adviser believes, at the approved degree of certainty, that the price is not reflective of
current market value, the Adviser will use the indication of fair value from the pricing service to determine the fair value of the security.
The pricing vendor, pricing methodology or degree of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services 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 special securities, dividend rate, maturity and other market data. Pricing services generally value fixed income securities
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. Prices received from pricing services are fair value prices.
In addition, if the price provided by the pricing service and independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the
A-19 The
Invesco Funds
NYSE,
each Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio,
generally still will determine the net asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities
traded on the NYSE would be valued at their closing prices unless the Adviser
determines that a “fair value” adjustment is appropriate
due to subsequent events occurring after an early close consistent with the valuation policy
approved by the Board and related procedures. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio will generally determine the net
asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business day for Invesco Government Money Market Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day that (1) both the Federal Reserve Bank of New
York and a Fund’s custodian are open for business and (2) the primary trading markets for the Fund’s portfolio instruments
are open and the Fund’s management believes there is an adequate market to meet purchase and redemption requests. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio are authorized not to open for trading
on a day that is otherwise a business day if the Securities Industry and Financial Markets Association (SIFMA) recommends that government
securities dealers not open for trading; any such day will not be considered a business day. Invesco Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio also may close early
on a business day if SIFMA recommends that government securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to close early on a business day, the Fund
will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and Invesco U.S. Government Money Portfolio
are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends that government securities dealers
not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio also may close early on a business
day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent
with
the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be to reduce the ability of frequent
traders to take advantage of arbitrage opportunities resulting from potentially “stale” prices of portfolio holdings. However,
it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce the deferred tax asset balance if, based
on the weight of all available evidence, both negative and
A-20 The
Invesco Funds
positive,
it is more likely than not that the deferred tax asset balance will not be realized. The Fund will use judgment in considering the relative
impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence will be commensurate
with the extent to which such evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature,
frequency and severity of current and cumulative losses, the duration of statutory carry forward periods and the associated risk that
operating loss and capital loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration
is also given to market cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level
of MLP distributions. The Fund will assess whether a valuation allowance is required to offset any deferred tax asset balance in connection
with the calculation of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the
estimates the Fund used in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material
impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not received from such MLPs on a timely basis,
the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital based on average historical
tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax liability and/or asset balances
are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or asset balances used to calculate
the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income tax expense, if any, will be incurred
over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund’s assets
and other factors. As a result, the determination of the Fund’s actual tax liability may have a material impact on the Fund’s
NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions regarding the Fund’s deferred
tax liability and/or asset balances and any applicable valuation allowance, based on all information available to the Fund at such time.
From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances and any
applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates or assumptions regarding
its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles
or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and changes in applicable tax law
could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares
of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or
after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS).
Cost basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
A-21 The
Invesco Funds
received
from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with,
your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free.
Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased
tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
A-22 The
Invesco Funds
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly, even if a partnership in which the Fund
invests were to remain classified as a partnership (instead of as a corporation), it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such partnership, could be required
to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a
corporate
subsidiary that invests in commodities, may be considered qualifying income under the Code. However, the portion of such rulings relating
to the treatment of a corporation as a regulated investment company that require a determination of whether a financial instrument or
position is a security under section 2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the income requirement. In lieu of disqualification, the Funds
are permitted to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited
to those due to reasonable cause and not willful neglect. The Funds intend to limit their investments in their respective Subsidiary to
no more than 25% of the value of each Fund’s total assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
A-23 The
Invesco Funds
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be required to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits
recognized by each such MLP, regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund,
are not taxable unless the cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s
basis in its MLP interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities
of MLPs will exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization
and depletion that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation
is not realized, the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for
distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the
event
a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal income tax liability may be higher than
expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution received by a shareholder from
the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund shares (but not below
zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder
for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
A-24 The
Invesco Funds
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on
proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that
is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under
FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this deduction (since the Fund is taxed as a “C”
corporation) or pass the special character of this income through to its shareholders. Qualified publicly traded partnership income allocated
to a noncorporate investor investing directly in an MLP might, however, be eligible for the deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the
A-25 The
Invesco Funds
tax
basis of his shares will be reduced (but not below zero) and will result in an increase in the amount of gain (or decrease in the amount
of loss) that will be recognized by the Investor on the later sale of its shares. A distribution in partial or complete redemption of
your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received exceeds the tax basis of your
entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the tax liability resulting
from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have the ability
to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit, but there
can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit rules,
items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION OR WARRANTY
OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In addition, the
“partnership representative” (tax matters partner, for taxable years before the partnership audit rules become effective)
will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits and judicial
review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US withholding tax will apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank
A-26 The
Invesco Funds
(including bank trust
departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other financial
intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
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 the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More
information may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details
about the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Small Cap Growth Fund
SEC 1940 Act file
number: 811-02699 |
|
invesco.com/us
|
SCG-PRO-1
|
STATEMENT
OF ADDITIONAL INFORMATION
Dated
April 28,
2023
AIM
Growth Series (Invesco Growth Series)
This
Statement of Additional Information (the SAI) relates to each portfolio (each a Fund, collectively the Funds) of AIM Growth Series (Invesco
Growth Series) (the Trust) listed below. Each Fund offers separate classes of shares as follows:
|
Fund
|
A
|
C
|
R
|
S
|
Y
|
Investor
|
Class
R5 |
Class
R6 |
Prospectus
Date
|
|
Invesco
Active
Allocation
Fund |
OAAAX
|
OAACX
|
OAANX
|
N/A
|
OAAYX
|
N/A
|
PAAJX
|
PAAQX
|
April
28, 2023 |
|
Invesco
Convertible
Securities
Fund |
CNSAX
|
CNSCX
|
N/A
|
N/A
|
CNSDX
|
N/A
|
CNSIX
|
CNSFX
|
April
28, 2023 |
|
Invesco
Income
Advantage
International
Fund |
GTNDX
|
GNDCX
|
GTNRX
|
N/A
|
GTNYX
|
N/A
|
GNDIX
|
GNDSX
|
April
28, 2023 |
|
Invesco
Income
Allocation
Fund |
ALAAX
|
CLIAX
|
RLIAX
|
N/A
|
ALAYX
|
N/A
|
ILAAX
|
IIASX
|
April
28, 2023 |
|
Invesco
International
Diversified
Fund |
OIDAX
|
OIDCX
|
OIDNX
|
N/A
|
OIDYX
|
N/A
|
INDFX
|
OIDIX
|
April
28, 2023 |
|
Invesco
Main
Street
Mid Cap
Fund®
|
OPMSX
|
OPMCX
|
OPMNX
|
N/A
|
OPMYX
|
N/A
|
MSMJX
|
OPMIX
|
April
28, 2023 |
|
Invesco
Main
Street
Small Cap
Fund®
|
OSCAX
|
OSCCX
|
OSCNX
|
N/A
|
OSCYX
|
N/A
|
MNSQX
|
OSSIX
|
April
28, 2023 |
|
Invesco
Quality
Income
Fund |
VKMGX
|
VUSCX
|
VUSRX
|
N/A
|
VUSIX
|
N/A
|
VUSJX
|
VUSSX
|
April
28, 2023 |
|
Invesco
Select
Risk:
Conservative
Investor
Fund |
OACIX
|
OCCIX
|
ONCIX
|
N/A
|
OYCIX
|
N/A
|
PXCIX
|
PXCCX
|
April
28, 2023 |
|
Invesco
Select
Risk:
Growth
Investor
Fund |
AADAX
|
AADCX
|
AADRX
|
AADSX
|
AADYX
|
N/A
|
AADIX
|
AAESX
|
April
28, 2023 |
|
Invesco
Select
Risk:
High Growth
Investor
Fund |
OAAIX
|
OCAIX
|
ONAIX
|
N/A
|
OYAIX
|
N/A
|
PXQIX
|
PXGGX
|
April
28, 2023 |
|
Invesco
Select
Risk:
Moderate
Investor
Fund |
OAMIX
|
OCMIX
|
ONMIX
|
PXMSX
|
OYMIX
|
N/A
|
PXMQX
|
PXMMX
|
April
28, 2023 |
|
Invesco
Select
Risk:
Moderately
Conservative
Investor
Fund |
CAAMX
|
CACMX
|
CMARX
|
CMASX
|
CAAYX
|
N/A
|
CMAIX
|
CNSSX
|
April
28, 2023 |
|
Invesco
Small Cap
Growth
Fund |
GTSAX
|
GTSDX
|
GTSRX
|
N/A
|
GTSYX
|
GTSIX
|
GTSVX
|
GTSFX
|
April
28, 2023 |
This
SAI is not a Prospectus, and it should be read in conjunction with the Prospectuses for the Funds listed above. Invesco Active Allocation
Fund, Invesco International Diversified Fund, Invesco Main Street Mid Cap Fund®,
Invesco Main Street Small Cap Fund®,
Invesco Select Risk: Conservative Investor Fund, Invesco Select Risk: High Growth Investor Fund and Invesco Select Risk: Moderate Investor
Fund were organized on May 24, 2019, for the purposes of acquiring the assets and liabilities of its corresponding predecessor funds (as
defined below). Portions of each Fund’s financial statements are incorporated into this SAI by reference to each Fund’s
most recent shareholder report for its fiscal year ended December
31, 2022.
AGS-SOAI-1
You may
obtain, without charge, a copy of any Prospectus and/or shareholder report for any Fund listed above from an authorized dealer or by writing
to:
Invesco
Investment Services, Inc.
P.O. Box 219078
Kansas City, MO 64121-9078
P.O. Box 219078
Kansas City, MO 64121-9078
or
by calling (800) 959-4246
or
on the Internet: http://www.invesco.com/us
Any
reference to the term “Fund” or “Funds” throughout this SAI refers to each Fund named above unless otherwise
indicated.
AGS-SOAI-1
STATEMENT
OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
TABLE OF CONTENTS
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Page
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1
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4
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4
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4
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4
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5
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|
5
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11
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22
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23
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|
23
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47
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|
54
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60
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74
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75
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|
75
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|
76
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|
76
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|
77
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|
77
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77
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81
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81
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84
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84
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|
89
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|
91
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|
92
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|
92
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|
93
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|
93
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|
94
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94
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|
94
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94
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|
95
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95
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96
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96
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96
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100
|
i
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Page
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101
| |
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102
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102
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103
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106
| |
|
106
| |
|
106
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107
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107
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110
| |
|
110
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111
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111
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111
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111
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111
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111
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112
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128
| |
|
128
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|
129
| |
|
131
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|
A-1
| |
|
B-1
| |
|
C-1
| |
|
D-1
| |
|
E-1
| |
|
F-1
| |
|
G-1
| |
|
H-1
| |
|
I-1
| |
|
J-1
| |
|
K-1
| |
|
L-1
| |
|
M-1
| |
|
N-1
| |
|
O-1
|
ii
GENERAL
INFORMATION ABOUT THE TRUST
Fund
History
AIM
Growth Series (Invesco Growth Series) (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. The Trust was originally organized
as a Massachusetts business trust on February 19, 1985 and re-organized as a Delaware statutory trust on May 29, 1998. Under the Trust's
Agreement and Declaration of Trust, as amended (the Trust Agreement), the Board of Trustees of the Trust (the Board) is authorized to
create new series of shares without the necessity of a vote of shareholders of the Trust.
Prior
to April 30, 2010, the Trust was known as AIM Growth Series.
The
following table shows each Fund’s current name and Fund history:
1
|
Fund
|
Fund
History |
|
Invesco
Select Risk: Growth
Investor
Fund |
Prior
to May 15, 2020, Invesco Select Risk: Growth Investor Fund was known as Invesco
Growth
Allocation Fund. Prior to April 30, 2010, Invesco Growth Allocation Fund was known as
AIM
Growth Allocation Fund. |
|
|
|
|
Invesco
Select Risk: High Growth
Investor
Fund* |
Prior
to May 15, 2020, Invesco Select Risk: High Growth Investor Fund was known as Invesco
Oppenheimer
Portfolio Series: Growth Investor Fund. On May 24, 2019, Invesco Oppenheimer
Portfolio
Series: Growth Investor Fund assumed the assets and liabilities of its predecessor fund
Oppenheimer
Portfolio Series: Growth Investor Fund. |
|
|
|
|
Invesco
Select Risk: Moderate
Investor
Fund* |
Prior
to May 15, 2020, Invesco Select Risk: Moderate Investor Fund was known as Invesco
Oppenheimer
Portfolio Series: Moderate Investor Fund. On May 24, 2019, Invesco
Oppenheimer
Portfolio Series: Moderate Investor Fund assumed the assets and liabilities of its
predecessor
fund Oppenheimer Portfolio Series: Moderate Investor Fund. |
|
|
|
|
Invesco
Select Risk: Moderately
Conservative
Investor Fund |
Prior
to May 15, 2020, Invesco Select Risk: Moderately Conservative Investor Fund was known
as
Invesco Conservative Allocation Fund. Prior to December 14, 2011, Invesco Conservative
Allocation
Fund was known as Invesco Moderately Conservative Allocation Fund. Prior to
April
30, 2010, Invesco Moderately Conservative Allocation Fund was known as AIM Moderately
Conservative
Allocation Fund. |
|
|
|
|
Invesco
Small Cap Growth Fund |
Prior
to April 30, 2010, Invesco Small Cap Growth Fund was known as AIM Small Cap Growth
Fund
|
|
|
|
|
* All
historical financial information and other information contained in this SAI relating to the Fund (or any classes thereof) for periods
ending
on or prior to May 24, 2019, is that of its predecessor fund (or the corresponding classes thereof). | |
Shares
of Beneficial Interest
Shares
of beneficial interest of the Trust are redeemable at their net asset value at the option of the shareholder
or at the option of the Trust, in accordance with any applicable provisions of the Trust Agreement and applicable law, subject in certain
circumstances to a contingent deferred sales charge, if applicable.
The
Trust allocates cash and property it receives from the issue or sale of shares, together with all assets in
which such consideration is invested or reinvested, all income, earnings, profits and proceeds thereof, to the appropriate Fund,
subject only to the rights of creditors of that Fund. These assets constitute the assets belonging to each Fund, are segregated on the
Trust’s books, and are charged with the liabilities and expenses of such Fund and its respective classes. The Trust allocates any
general liabilities and expenses of the Trust not readily identifiable as belonging to a particular Fund primarily on the basis of relative
net assets or other relevant factors, subject to oversight by the Board.
Each
share of each Fund represents an equal pro rata interest in that Fund with each other share and is entitled
to dividends and other distributions with respect to the Fund, which may be from income, capital gains,
capital or distributions in kind, as declared by the Board.
Each
class of shares of a Fund represents a proportionate undivided interest in the net assets belonging to
that Fund. Differing sales charges and expenses will result in differing net asset values and dividends and distributions.
Upon any liquidation of the Trust, shareholders of each class are entitled to share pro rata in the net assets belonging to the applicable
Fund allocable to such class available for distribution after satisfaction of, or reasonable provision for, the outstanding liabilities
of the Fund allocable to such class.
The
Trust Agreement provides that each shareholder, by virtue of having become a shareholder of the Trust,
is bound by terms of the Trust Agreement and the Trust’s Bylaws. Ownership of shares does not make shareholders third party beneficiaries
of any contract entered into by the Trust.
The
Trust is not required to hold annual or regular meetings of shareholders. Meetings of shareholders of a
Fund or class will be held for any purpose determined by the Board, including from time to time to consider
2
matters
requiring a vote of such shareholders in accordance with the requirements of the 1940 Act, state law or
the provisions of the Trust Agreement. It is not expected that shareholder meetings will be held annually.
The
Trust Agreement provides that the Board may authorize (i) a merger, consolidation or sale of assets (including,
but not limited to, mergers, consolidations or sales of assets between two Funds, or between a Fund and a series of any other registered
investment company), and (ii) the combination of two or more classes of shares of a Fund into a single class, each without shareholder
approval but subject to applicable requirements under the 1940 Act and state law.
Each
share of a Fund generally has the same voting, dividend, liquidation and other rights; however, each class
of shares of a Fund is subject to different sales loads, conversion features, exchange privileges and class-specific expenses, as applicable.
Except
as specifically noted above, shareholders of each Fund are entitled to one vote per share (with proportionate
voting for fractional shares), irrespective of the relative net asset value of the shares of the Fund. However, on matters affecting an
individual Fund or class of shares, a separate vote of shareholders of that Fund or class is required. Shareholders of a Fund or class
are not entitled to vote on any matter which does not affect that Fund or class but that requires a separate vote of another Fund or class.
An example of a matter that would be voted on separately by shareholders of each Fund is the approval of the advisory agreement with Invesco
Advisers, Inc. (the Adviser or Invesco).
When
issued, shares of each Fund are fully paid and nonassessable, have no preemptive or subscription rights,
and are freely transferable. Shares do not have cumulative voting rights in connection with the election of Trustees or on any other matter.
Under
Delaware law, shareholders of a Delaware statutory trust shall be entitled to the same limitation of personal
liability extended to shareholders of private for-profit corporations organized under Delaware law. There is a remote possibility, however,
that shareholders could, under certain circumstances, be held liable for the obligations of the Trust to the extent the courts of another
state, which does not recognize such limited liability, were to apply the laws of such state to a controversy involving such obligations.
The Trust Agreement disclaims shareholder personal liability for the debts, liabilities, obligations and expenses of the Trust and requires
that every undertaking of the Trust or the Board relating to the Trust or any Fund include a recitation limiting such obligation to the
Trust and its assets or to one or more of the Funds and the assets belonging thereto. The Trust Agreement provides for indemnification
out of the property of a Fund (or class, as applicable) for all losses and expenses of any shareholder of such Fund held personally liable
solely on account of being or having been a shareholder.
The
trustees and officers of the Trust will not be liable for any act, omission or obligation of the Trust or any
trustee or officer; however, a trustee or officer is not protected against any liability to the Trust or to the shareholders to which
a trustee or officer would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of
the duties involved in the conduct of his or her office with the Trust or applicable Fund (Disabling Conduct). The Trust’s Bylaws
generally provide for indemnification by the Trust of the trustees, officers and employees or agents of the Trust, provided that such
persons have not engaged in Disabling Conduct. Indemnification does not extend to judgments or amounts paid in settlement in any actions
by or in the right of the Trust. The Trust Agreement also authorizes the purchase of liability insurance on behalf of trustees and officers
with Fund assets. The Trust’s Bylaws provide for the advancement of payments of expenses to current and former trustees, officers
and employees or agents of the Trust, or anyone serving at their request, in connection with the preparation and presentation of a defense
to any claim, action, suit or proceeding, for which such person would be entitled to indemnification; provided that any advancement of
expenses would be reimbursed unless it is ultimately determined that such person is entitled to indemnification for such expenses.
The
Trust Agreement provides that any Trustee who serves as chair of the Board,
a member or chair of a committee of the Board, lead independent
Trustee, or an expert on any topic or in any area (including an audit committee financial expert), or in any other special appointment
will not be subject to any greater standard of care or liability because of such position.
3
The
Trust Agreement provides a detailed process for the bringing of derivative actions by shareholders. A shareholder
may only bring a derivative action on behalf of the Trust if certain conditions are met. Among other things, such conditions: (i) require
shareholder(s) to make a pre-suit demand on the Trustees (unless such effort is not likely to succeed because a majority of the Board
or the committee established to consider the merits of such action are not independent Trustees under Delaware law); (ii) require 10%
of the beneficial owners to join in the pre-suit demand, or if a pre-suit demand is not required, require 10% of beneficial owners to
join in the demand for the Board to commence such action; and (iii) afford the Trustees a reasonable amount of time to consider the request
and investigate the basis of the claims (including designating a committee to consider the demand and hiring counsel or other advisers).
These conditions generally are intended to provide the Trustees with the ability to pursue a claim if they believe doing so would be in
the best interests of the Trust and its shareholders and to preclude the pursuit of claims that the Trustees determine to be without merit
or otherwise not in the Trust’s best interest to pursue. Insofar as the federal securities laws supersede state law, these provisions
do not apply to shareholder derivative claims that arise under the federal securities laws.
The
Trust Agreement also generally requires that actions by shareholders in connection with or against the
Trust or a Fund be brought only in certain Delaware courts,
provided that actions arising under the U.S. federal securities
laws are required to be brought in the United States District Court for the Southern District of New York and that the right to jury trial
be waived to the fullest extent permitted by law. These provisions may result in increased shareholder costs in pursuing a shareholder
derivative claim and/or may limit a shareholder's ability to bring a claim in a different forum.
Share
Certificates
Shareholders
of the Funds do not have the right to demand or require the Trust to issue share certificates and
share certificates are not issued. Any certificate previously issued with respect to any shares is deemed to be cancelled without any
requirement for surrender to the Trust.
DESCRIPTION
OF THE FUNDS AND THEIR INVESTMENTS AND RISKS
Classification
The
Trust is an open-end management investment company. Each of the Funds is classified as "diversified"
for purposes of the 1940 Act.
Asset
Allocation Funds
Invesco
Active Allocation Fund, Invesco International Diversified Fund, Invesco Select Risk: Conservative Investor
Fund, Invesco Select Risk: Growth Investor Fund, Invesco Select Risk: High Growth Investor Fund, Invesco Income Allocation Fund, Invesco
Select Risk: Moderate Investor Fund and Invesco Select Risk: Moderately Conservative Investor Fund (the Asset Allocation Funds) are each
a "fund of funds" that primarily invests in other underlying funds (Underlying Funds) and generally does not directly invest in the securities
or use the investment techniques discussed below under "Investment Strategies and Risks" unless otherwise described in the Fund’s
prospectus or this SAI.
The
Asset Allocation Funds’ most recent Annual and Semi-Annual Reports contain a list of Underlying Funds
and the weightings as of end of the most recently completed fiscal period for each Fund. The Underlying Funds in which the Asset Allocation
Funds invest are mutual funds advised by Invesco and exchange-traded funds (ETFs) and other pooled investment vehicles advised by Invesco
Capital Management LLC (Invesco Capital), an affiliate of Invesco, or mutual funds, ETFs and other pooled investment vehicles advised
by other unaffiliated advisers, as applicable. Invesco and Invesco Capital are affiliates of each other as they are both indirect wholly-owned
subsidiaries of Invesco Ltd. The Underlying Funds and their percentage allocations have been selected for use over long periods of time,
but Invesco may change an Asset Allocation Fund’s asset class allocations, the underlying funds or the target weightings without
notice to, or approval by, shareholders. The actual percentage allocations will vary from the target weightings in the Underlying Funds
due to factors such as market movements and capital flows. Invesco rebalances the Asset
4
Allocation
Funds' investments in the Underlying Funds periodically to bring them back within their percentage allocations.
Invesco has the ability to rebalance on a more frequent basis if necessary. Some portion of each Asset Allocation Fund's portfolio may
be held in cash due to purchase and redemption activity and other short term cash needs and the percentage allocations do not reflect
the Asset Allocation Funds' working cash balances. Cash flows will be managed to help maintain target percentage allocations.
Investment
Strategies and Risks
Set
forth below are detailed descriptions of the various types of securities and investment techniques that the
Funds and Underlying Funds may use, as well as the risks associated with those types of securities and investment techniques. The descriptions
of the types of securities and investment techniques below supplement the discussion of principal investment strategies and risks contained
in each Fund’s and Underlying Fund’s Prospectus. Where a particular type of security or investment technique is not discussed
in a Fund’s and Underlying Fund’s Prospectus, that security or investment technique is not a principal investment strategy.
The Funds
and the Underlying Funds may invest in all of the following types of investments. The Funds and
the Underlying Funds might not invest in all of these types of securities or use all of these techniques at any one time. Invesco and/or
the Sub-Advisers (as defined herein) may invest in other types of securities and may use other investment techniques in managing the Funds
as well as securities and techniques not described. A Fund’s and the Underlying Funds' transactions in a particular type of security
or use of a particular technique are subject to limitations imposed by a Fund’s and an Underlying Fund's investment objective,
policies and restrictions described in the Fund’s and an Underlying Fund's Prospectus and/or this SAI, as well as the federal securities
laws.
Unless
the Fund’s prospectus or this SAI states that a percentage limitation or fundamental or non-fundamental
restriction applies on an ongoing basis, it applies only at the time the Fund makes an investment. That means the Fund is not required
to sell securities to meet the percentage limits or investment restrictions if the value of the investment increases in proportion to
the size of the Fund. Percentage limits on borrowing apply on an ongoing basis.
The
Funds’ and Underlying Funds’ investment objectives, policies, strategies and practices described below
are non-fundamental and may be changed without approval of the holders of the Funds’ and Underlying Funds’ voting securities,
unless otherwise indicated.
As
stated above, the Asset Allocation Funds are “fund of funds” that invest in the Underlying Funds and generally
do not directly invest in the securities or use the investment techniques discussed below under “Investment Strategies and Risks,”
unless otherwise described in the Fund’s Prospectus or this SAI. The types of securities and investment techniques discussed below
generally are those of Invesco Convertible Securities Fund, Invesco Income Advantage International Fund, Invesco Main Street Mid Cap Fund®,
Invesco Main Street Small Cap Fund®,
Invesco Quality Income Fund and Invesco Small Cap Growth Fund and the Underlying Funds. The Asset Allocation Funds may from time to time
directly invest in one or more of the securities or use the investment techniques discussed below. For the purposes of this section, “Fund”
means a Fund and/or an Underlying Fund, as applicable.
Equity
Investments
Common
Stock. Common stock is issued by a company principally to raise
cash for business purposes and represents an equity or ownership interest in the issuing company. Common stockholders are typically entitled
to vote on important matters of the issuing company, including the selection of directors, and may receive dividends on their holdings.
The Fund participates in the success or failure of any company in which it holds common stock. In the event a company is liquidated or
declares bankruptcy, the claims of bondholders, other debt holders, owners of preferred stock and general creditors take precedence over
the claims of those who own common stock.
5
The
prices of common stocks change in response to many factors including the historical and prospective earnings
of the issuing company, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.
Over-the-Counter
Securities.
Securities of small- and mid-capitalization issuers may be traded on securities exchanges or in the over-the-counter market. The over-the-counter
markets, both in the U.S. and abroad, may have less liquidity than securities exchanges. That lack of liquidity can affect the price the
Fund is able to obtain when it wants to sell a security, because if there are fewer buyers and less demand for a particular security,
the Fund might not be able to sell it at an acceptable price or might have to reduce the price in writing in order to dispose of the security.
There are a number of over-the-counter markets in the U.S., as well as those abroad, as long as a dealer is willing to make a market in
a particular security.
Preferred
Stock.
Preferred stock, unlike common stock, often offers a specified dividend rate payable from a company’s earnings. Preferred stock
also generally has a preference over common stock on the distribution of a company’s assets in the event the company is liquidated
or declares bankruptcy; however, the rights of preferred stockholders on the distribution of a company’s assets in the event of
a liquidation or bankruptcy are generally subordinate to the rights of the company’s debt holders and general creditors. If interest
rates rise, the fixed dividend on preferred stocks may be less attractive, causing the price of preferred stocks to decline.
Some
fixed rate preferred stock may have mandatory sinking fund provisions which provide for the stock to
be retired or redeemed on a predetermined schedule, as well as call/redemption provisions prior to maturity, which can limit the benefit
of any decline in interest rates that might positively affect the price of preferred stocks. Preferred stock dividends may be “cumulative,”
requiring all or a portion of prior unpaid dividends to be paid before dividends are paid on the issuer’s common stock. Preferred
stock may be “participating,” which means that it may be entitled to a dividend exceeding the stated dividend in certain
cases. In some cases an issuer may offer auction rate preferred stock, which means that the interest to be paid is set by auction and
will often be reset at stated intervals.
Small-
and Mid-Capitalization Companies. Small-capitalization (small-cap)
companies may be either established or newer companies, including “unseasoned” companies that have typically been in operation
for less than three years. Mid-capitalization (mid-cap) companies are generally companies that have completed their initial start-up cycle,
and in many cases have established markets and developed seasoned market teams. While smaller companies might offer greater opportunities
for gain than larger companies, they also involve greater risk of loss. They may be more sensitive to changes in a company’s earnings
expectations and may experience more abrupt and erratic price movements. Small- and mid-cap companies’ securities often trade in
lower volumes and in many instances, are traded over-the-counter or on a regional securities exchange, where the frequency and volume
of trading is substantially less than is typical for securities of larger companies traded on national securities exchanges. Therefore,
the securities of smaller companies may be subject to wider price fluctuations and it might be harder for the Fund to dispose of its holdings
at an acceptable price when it wants to sell them. Small- and mid-cap companies may not have established markets for their products or
services and may have fewer customers and product lines. They may have more limited access to financial resources and may not have the
financial strength to sustain them through business downturns or adverse market conditions. Since small- and mid-cap companies typically
reinvest a high proportion of their earnings in their business, they may not pay dividends for some time, particularly if they are newer
companies. Small- and mid-cap companies may have unseasoned management or less depth in management skill than larger, more established
companies. They may be more reliant on the efforts of particular members of their management team and management changes may pose a greater
risk to the success of the business. Securities of small, unseasoned companies may be particularly volatile, especially in the short-term,
and may have very limited liquidity in a declining market. It may take a substantial period of time to realize a gain on an investment
in a small- or mid-cap company, if any gain is realized at all.
When
the Fund invests in smaller company securities that might trade infrequently, investors might seek to
trade Fund shares based on their knowledge or understanding of the value of those securities (this is sometimes referred to as “price
arbitrage”). If such price arbitrage were successful, it might interfere with the
6
efficient
management of the Fund’s portfolio and the Fund may be required to sell securities at disadvantageous
times or prices to satisfy the liquidity requirements created by that activity. Successful price arbitrage might also dilute the value
of fund shares held by other shareholders.
Equity-Linked
Securities. Equity-linked securities are instruments whose value
is based upon the value of one or more underlying equity securities, a reference rate or an index. Equity-linked securities come in many
forms and may include features, among others, such as the following: (i) may be issued by the issuer of the underlying equity security
or by a company other than the one to which the instrument is linked (usually an investment bank), (ii) may convert into equity securities,
such as common stock, within a stated period from the issue date or may be redeemed for cash or some combination of cash and the linked
security at a value based upon the value of the underlying equity security within a stated period from the issue date, (iii) may have
various conversion features prior to maturity at the option of the holder or the issuer or both, (iv) may limit the appreciation value
with caps or collars of the value of the underlying equity security and (v) may have fixed, variable or no interest payments during the
life of the security which reflect the actual or a structured return relative to the underlying dividends of the linked equity security.
Investments in equity-linked securities may subject a Fund to additional risks not ordinarily associated with investments in other equity
securities. Because equity-linked securities are sometimes issued by a third party other than the issuer of the linked security, a Fund
is subject to risks if the underlying equity security, reference rate or index underperforms or if the issuer defaults on the payment
of the dividend or the common stock at maturity. In addition, the trading market for particular equity-linked securities may be less liquid,
making it difficult for a Fund to dispose of a particular security when necessary and reduced liquidity in the secondary market for any
such securities may make it more difficult to obtain market quotations for valuing the Fund’s portfolio.
Convertible
Securities.
Convertible securities are generally bonds, debentures, notes, preferred stocks or other securities or investments that may be converted
or exchanged (by the holder or by the issuer) into shares of the underlying common stock (or cash or securities of equivalent value) at
a stated exchange ratio or predetermined price (the conversion price). A convertible security is designed to provide current income and
also the potential for capital appreciation through the conversion feature, which enables the holder to benefit from increases in the
market price of the underlying common stock. A convertible security may be called for redemption or conversion by the issuer after a particular
date and under certain circumstances (including a specified price) established upon issue. If a convertible security held by a Fund is
called for redemption or conversion, the Fund could be required to tender it for redemption, convert it into the underlying common stock,
or sell it to a third party, which may have an adverse effect on the Fund’s ability to achieve its investment objectives. Convertible
securities have general characteristics similar to both debt and equity securities.
A
convertible security generally entitles the holder to receive interest paid or accrued until the convertible security
matures or is redeemed, converted or exchanged. Before conversion, convertible securities have characteristics similar to non-convertible
debt obligations and are designed to provide for a stable stream of income with generally higher yields than common stocks. However, there
can be no assurance of current income because the issuers of the convertible securities may default on their obligations. Convertible
securities rank senior to common stock in a corporation’s capital structure and, therefore, generally entail less risk than the
corporation’s common stock. Convertible securities are subordinate in rank to any senior debt obligations of the issuer, and, therefore,
an issuer’s convertible securities entail more risk than its debt obligations. Moreover, convertible securities are often rated
below investment grade or not rated because they fall below debt obligations and just above common stock in order of preference or priority
on an issuer’s balance sheet. To the extent that a Fund invests in convertible securities with credit ratings below investment
grade, such securities may have a higher likelihood of default, although this may be somewhat offset by the convertibility feature.
Convertible
securities generally offer lower interest or dividend yields than non-convertible debt securities of
similar credit quality because of the potential for capital appreciation. The common stock underlying convertible securities may be issued
by a different entity than the issuer of the convertible securities.
7
The
value of convertible securities is influenced by both the yield of non-convertible securities of comparable
issuers and by the value of the underlying common stock. The value of a convertible security viewed without regard to its conversion feature
(i.e., strictly on the basis of its yield) is sometimes referred to as its “investment value.” The investment value of the
convertible security typically will fluctuate based on the credit quality of the issuer and will fluctuate inversely with changes in prevailing
interest rates. However, at the same time, the convertible security will be influenced by its “conversion value,” which
is the market value of the underlying common stock that would be obtained if the convertible security were converted. Conversion value
fluctuates directly with the price of the underlying common stock, and will therefore be subject to risks relating to the activities of
the issuer and general market and economic conditions. Depending upon the relationship of the conversion price to the market value of
the underlying security, a convertible security may trade more like an equity security than a debt instrument.
If,
because of a low price of the common stock, the conversion value is substantially below the investment value
of the convertible security, the price of the convertible security is governed principally by its investment value. Generally, if the
conversion value of a convertible security increases to a point that approximates or exceeds its investment value, the value of the security
will be principally influenced by its conversion value. A convertible security will sell at a premium over its conversion value to the
extent investors place value on the right to acquire the underlying common stock while holding an income-producing security.
While
a Fund uses the same criteria to rate a convertible debt security that it uses to rate a more conventional
debt security, a convertible preferred stock is treated like a preferred stock for the Fund’s financial reporting, credit rating
and investment limitation purposes.
Contingent
Convertible Securities (CoCos). CoCos (also referred to as contingent
capital securities) are a form of hybrid fixed income security typically issued by non-U.S. banks that may either convert into common
stock of the issuer or undergo a principal write-down by a predetermined percentage upon the occurrence of a “trigger” event,
such as if (a) the issuer’s capital ratio falls below a specified level or (b) certain regulatory events, such as a change in regulatory
capital requirements, affect the issuer’s continued viability. Unlike traditional convertible securities, the conversion is not
voluntary and the equity conversion or principal write-down features are tailored to the issuing banking institution and its regulatory
requirements. In certain circumstances, CoCos may be automatically written down to zero, thereby cancelling the securities, and investors
(including a Fund) could lose the entire value of their investment even as the issuer remains in business. If such an event occurs, an
investor may not have any rights to repayment of the principal amount of the securities that has not become due. Additionally, an investor
may not be able to collect interest payments or dividends on such securities.
CoCos
are subject to credit, interest rate and market risks associated with fixed income and equity securities
generally, along with risks typically applicable to convertible securities. CoCos are also subject to loss absorption risk because coupon
payments can potentially be cancelled or deferred at the issuer’s discretion or at the request of the relevant regulatory authority
in order to help the bank absorb losses. Additionally, certain call provisions permit an issuer to repurchase CoCos if the regulatory
environment or tax treatment of the security (e.g., tax deductibility of interest payments) changes. This may result in a potential loss
to the Fund if the price at which the issuer calls or repurchases the CoCos is lower than the initial purchase price by the Fund.
CoCos
are subordinate in rank to traditional convertible securities and other debt obligations of an issuer in
the issuer’s capital structure, and therefore, CoCos entail more risk than an issuer’s other debt obligations.
CoCos
are generally speculative and their market value may fluctuate based on a number of unpredictable
factors, including, but not limited to, the creditworthiness of the issuer and/or fluctuations in the issuer’s capital ratios,
supply and demand for CoCos, general market conditions and available liquidity, and economic, financial and political events affecting
the particular issuer or markets in general.
Enhanced
Convertible Securities. “Enhanced” convertible securities
are equity-linked hybrid securities that automatically convert to equity securities on a specified date. Enhanced convertibles have been
designed with a variety of payoff structures, and are known by a variety of different names. Three features common to
8
enhanced
convertible securities are (i) conversion to equity securities at the maturity of the convertible (as opposed
to conversion at the option of the security holder in the case of ordinary convertibles); (ii) capped or limited appreciation potential
relative to the underlying common stock; and (iii) dividend yields that are typically higher than that on the underlying common stock.
Thus, enhanced convertible securities offer holders the opportunity to obtain higher current income than would be available from a traditional
equity security issued by the same company in return for reduced participation in the appreciation potential of the underlying common
stock. Other forms of enhanced convertible securities may involve arrangements with no interest or dividend payments made until maturity
of the security or an enhanced principal amount received at maturity based on the yield and value of the underlying equity security during
the security’s term or at maturity.
Synthetic
Convertible Securities. A synthetic convertible security is a derivative
position composed of two or more distinct securities whose investment characteristics, taken together, resemble those of traditional convertible
securities, i.e., fixed income and the right to acquire the underlying equity security. For example, a Fund may purchase a non-convertible
debt security and a warrant or option, which enables a Fund to have a convertible-like position with respect to a security or index.
Synthetic
convertibles are typically offered by financial institutions in private placement transactions and are
typically sold back to the offering institution. Upon conversion, the holder generally receives from the offering institution an amount
in cash equal to the difference between the conversion price and the then-current value of the underlying security. Synthetic convertible
securities differ from true convertible securities in several respects. The value of a synthetic convertible is the sum of the values
of its fixed-income component and its convertibility component. Thus, the values of a synthetic convertible and a true convertible security
will respond differently to market fluctuations. Purchasing a synthetic convertible security may provide greater flexibility than purchasing
a traditional convertible security, including the ability to combine components representing distinct issuers, or to combine a fixed income
security with a call option on a stock index, when the Adviser determines that such a combination would better further a Fund’s
investment goals. In addition, the component parts of a synthetic convertible security may be purchased simultaneously or separately.
The
holder of a synthetic convertible faces the risk that the price of the stock or the level of the market index
underlying the convertibility component will decline. In addition, in purchasing a synthetic convertible security, a Fund may have counterparty
risk with respect to the financial institution or investment bank that offers the instrument.
Alternative
Entity Securities. Alternative entity securities are the securities
of entities that are formed as limited partnerships, limited liability companies, business trusts or other non-corporate entities that
are similar to common or preferred stock of corporations.
Initial
Public Offerings. Initial public offerings (IPOs) of securities
issued by unseasoned companies with little or no operating history are risky and their prices are highly volatile, but they can result
in very large gains in their initial trading. Attractive IPOs are often oversubscribed and may not be available to a Fund, or only in
very limited quantities. Thus, when a Fund’s size is smaller, any gains from IPOs will have an exaggerated impact on the Fund’s
reported performance than when the Fund is larger. The Fund may engage in short-term trading in connection with its IPO investments, which
could produce higher trading costs and adverse tax consequences. There can be no assurance that a Fund will have favorable IPO investment
opportunities.
Special
Purpose Acquisition Companies. Special purpose acquisition companies
(“SPACs”) are investment entities, acquired through stocks, warrants and other securities, that pool funds to seek potential
acquisition or merger opportunities. A SPAC is a publicly traded company that raises funds through an initial public offering (“IPO”)
for the purpose of acquiring or merging with another company to be identified subsequent to the SPAC’s IPO. The securities of a
SPAC are often issued in “units” that include one share of common stock and one right or warrant (or partial right or warrant)
conveying the right to purchase additional common shares or partial shares of the SPAC. In some cases, the rights and warrants may be
separated from the common stock at the election of the holder, after which they may become freely tradeable. If a Fund purchases shares
of a SPAC in an IPO it will generally bear a sales commission, which may be significant.
9
Unless
and until a business combination transaction is completed, a SPAC generally invests its assets (which
are constituted solely by the proceeds of the IPO), less a portion retained to cover expenses, in U.S. government securities, money market
funds and similar investments whose returns or yields may be significantly lower than those of a Fund’s other investments. If an
acquisition or merger that meets the requirements for the SPAC is not completed within a pre-established period of time, the invested
funds are returned to the SPAC’s shareholders, less certain permitted expenses, and any rights or warrants issued by the SPAC will
expire worthless. Under any circumstances in which a Fund receives a refund of all or a portion of its original investment in a SPAC,
the returns on that investment may be negligible, and a Fund may be subject to opportunity costs to the extent that alternative investments
would have produced higher returns. Further, a Fund may be delayed in receiving any redemption or liquidation proceeds from a SPAC to
which it is entitled.
Because
SPACs are in essence “blank check” companies without operating histories or ongoing business operations
(other than identifying and pursuing acquisition or merger opportunities), the potential for the long term capital appreciation of their
securities is dependent on the ability of the SPAC’s sponsor to identify and complete a profitable business combination. There
is no guarantee that the SPACs in which a Fund invests will complete a business combination or that any transaction completed by the SPACs
in which a Fund invests will be profitable. Even if a SPAC in which a Fund has invested identifies a desirable acquisition or merger target
and reaches agreement with that company as to the terms of the business combination, there can be no guarantee that the transaction will
ultimately be consummated because, among other conditions that must be satisfied, a requisite number of shareholders of the SPAC or of
the target company do not vote in favor of the transaction. The values of investments in SPACs may be highly volatile and may depreciate
significantly over time. Some SPACs may pursue acquisitions or mergers only within certain industries or regions, which may ultimately
lead to an increase in the volatility of their prices following completion of a business combination. In addition, some of these securities
may be considered illiquid and/or subject to restrictions on resale, leaving a Fund unable to sell its interest in a SPAC or able to sell
its interest only at a price below what that Fund believes is the SPAC interest’s intrinsic value. Additionally, an investment
in a SPAC may be diluted by additional later offerings of interests in the SPAC or by other investors exercising their warrants to purchase
shares of the SPAC.
Due
to the risk of the loss of sponsors’ and other initial investors’ capital if an acquisition or merger is not consummated,
sponsors of SPACs may be incentivized to consummate business combinations at less attractive valuations at the expense of SPAC shareholders.
In addition, as the number of SPACs grows, there is greater competition among SPACs and traditional purchasers of companies, which further
increases the likelihood that SPAC sponsors may be incentivized to consummate acquisitions or mergers at less attractive valuations, as
well as the risk that SPACs cannot successfully complete business combinations.
Equity-Linked
Notes (ELNs). ELNs are hybrid derivative-type instruments, in a
single note form, that are specially designed to combine the characteristics of one or more reference securities (such as a single stock,
exchange-traded fund, exchange-traded note, or an index or basket of securities (underlying securities)) and a related equity derivative,
such as a put or call option. Generally, when purchasing an ELN, a Fund pays the counterparty the current value of the underlying securities
plus a commission. Upon the maturity of the note, the Fund generally receives the par value of the note plus a return based on the appreciation
of the underlying securities. A Fund may or may not hold an ELN until its maturity. If the underlying securities have depreciated in value
or if their price fluctuates outside of a preset range, depending on the type of ELN, the Fund may receive only the principal amount of
the note, or may lose the entire principal invested in the ELN. ELNs are available with an assortment of features, including periodic
coupon payments; limitations on participation in the appreciation of the underlying securities; and different protection levels on the
Fund’s principal investment. A Fund will only invest in ELNs for which the underlying security is a permissible investment for
the Fund in accordance with its investment policies and restrictions. ELNs are generally in two types: (1) those that provide for protection
of a Fund’s principal in exchange for limited participation in the appreciation of the underlying securities, and (2) those that
do not provide for such protection and subject a Fund to the risk of loss of its principal investment.
10
Investments
in ELNs possess the risks associated with the underlying securities, such as management risk,
market risk and, as applicable, foreign securities and currency risks. In addition, as a note, ELNs are also subject to certain debt securities
risks, such as interest rate and credit risk. An investment in an ELN also bears the risk that the ELN issuer will default or become bankrupt.
In such an event, the Fund may have difficulty being repaid, or fail to be repaid, the principal amount of, or income from, its investment.
ELNs may be structured to be subordinated or unsubordinated to other classes of debt holders' right of payment. A downgrade or impairment
to the credit rating of the issuer may also negatively impact the price of the ELN. The Fund may also experience liquidity issues when
investing in ELNs, as ELN transactions generally take place in the over-the-counter institutional investment market as well as in privately
negotiated transactions with ELN issuers. The secondary market for ELNs may be limited, and the lack of liquidity may make ELNs difficult
to sell at a desirable time and price and value. The price of an ELN may not correlate with the price of the underlying securities or
a fixed-income investment. As the holder of an ELN, the Fund generally has no rights to the underlying securities, including no voting
rights or rights to receive dividends. The Adviser’s ability to accurately forecast movements in the underlying securities will
determine the success of the Fund’s ELNs investments. Should the prices of the underlying securities move in an unexpected manner,
the Fund may not achieve the anticipated benefits of its ELN investments, and it may realize losses, which could be significant and could
include the Fund’s entire principal investment.
Foreign
Investments
Foreign
Securities. Foreign
securities are equity or debt securities issued by issuers outside the United States, and include securities in the form of American Depositary
Receipts (ADRs), European Depositary Receipts (EDRs), Global Depositary Receipts (GDRs) or other securities representing underlying securities
of foreign issuers (foreign securities). ADRs are receipts, issued by U.S. banks, for the shares of foreign corporations, held by the
bank issuing the receipt. ADRs are typically issued in registered form, denominated in U.S. dollars and designed for use in the U.S. securities
markets. GDRs are bank certificates issued in more than one country for shares in a foreign company. The shares are held by a foreign
branch of an international bank. GDRs trade as domestic shares but are offered for sale globally through the various bank branches. GDRs
are typically used by private markets to raise capital and are denominated in either U.S. dollars or foreign currencies. EDRs are similar
to ADRs and GDRs, except they are typically issued by European banks or trust companies, denominated in foreign currencies and designed
for use outside the U.S. securities markets. ADRs, EDRs and GDRs entitle the holder to all dividends and capital gains on the underlying
foreign securities, less any fees paid to the bank. Purchasing ADRs, EDRs or GDRs gives a Fund the ability to purchase the functional
equivalent of foreign securities without going to the foreign securities markets to do so. ADRs, EDRs or GDRs that are “sponsored”
are those where the foreign corporation whose shares are represented by the ADR, EDR or GDR is actively involved in the issuance of the
ADR, EDR or GDR and generally provides material information about the corporation to the U.S. market. An “unsponsored” ADR,
EDR or GDR program is one where the foreign corporation whose shares are held by the bank is not obligated to disclose material information
in the United States, and, therefore, the market value of the ADR, EDR or GDR may not reflect important facts known only to the foreign
company.
Foreign
debt securities include corporate debt securities of foreign issuers, certain foreign bank obligations
(see “Bank Instruments”) and U.S. dollar or foreign currency denominated obligations of foreign governments or their subdivisions,
agencies and instrumentalities (see “Foreign Government Obligations”), international agencies and supranational entities.
The
Funds consider various factors when determining whether a company is in a particular country or in a particular
region/continent, including whether (1) it is organized under the laws of a country or in a country in a particular region/continent;
(2) it has a principal office in a country or in a country in a particular region/continent; (3) it derives 50% or more of its total revenues
from businesses in a country or in a country in a particular region/continent; (4) its securities are traded principally on a security
exchange, or in an over-the-counter (OTC) market, in a particular country or in a country in a particular region/continent; and/or (5)
its “country of risk" as determined by a third party service provider such as Bloomberg. The issuer's “country of
11
risk”
is determined based on a number of criteria, including its country of domicile, the primary stock exchange on
which it trades, the location from which the majority of its revenue comes, and its reporting currency.
Investments
by a Fund in foreign securities, including ADRs, EDRs and GDRs, whether denominated in U.S.
dollars or foreign currencies, may entail all of the risks set forth below in addition to those accompanying an investment in issuers
in the United States.
Currency
Risk. The value in U.S. dollars of a Fund’s non-dollar-denominated
foreign investments will be affected by changes in currency exchange rates. The U.S. dollar value of a foreign security decreases when
the value of the U.S. dollar rises against the foreign currency in which the security is denominated and increases when the value of the
U.S. dollar falls against such currency.
Political
and Economic Risk. The economies of many countries may not be as
developed as that of the United States’ economy and may be subject to significantly different forces. Political, economic or social
instability and development, expropriation or confiscatory taxation, and limitations on the removal of funds or other assets could also
adversely affect the value of portfolio investments. Certain foreign companies may be subject to sanctions, embargoes, or other governmental
actions that may impair or otherwise limit the ability to invest in, receive, hold or sell the securities of such companies. These factors
may affect the value of investments in those companies. In addition, certain companies may operate in, or have dealings with, countries
that the U.S. government has identified as state sponsors of terrorism. As a result, such companies may be subject to specific constraints
or regulations under U.S. law and, additionally, may be subject to negative investor perception, either of which could adversely affect
such companies' performance.
Regulatory
Risk. Foreign companies may not be registered with the SEC and
are generally not subject to the regulatory controls and disclosure requirements imposed on U.S. issuers and, as a consequence, there
is generally less publicly available information about foreign securities than is available about domestic securities. Foreign companies
may not be subject to uniform accounting, auditing and financial reporting standards, corporate governance practices and requirements
comparable to those applicable to domestic companies. Therefore, financial information about foreign companies may be incomplete, or may
not be comparable to the information available on U.S. companies. Income from foreign securities owned by the Funds may be reduced by
a withholding tax at the source, which tax would reduce dividend income payable to Fund shareholders.
There
is generally less government supervision and regulation of securities exchanges, brokers, dealers, and
listed companies in foreign countries than in the U.S., thus increasing the risk of delayed settlements of portfolio transactions or loss
of certificates for portfolio securities. Foreign markets may also have different clearance and settlement procedures. If a Fund experiences
settlement problems, it may result in temporary periods when a portion of that Fund’s assets are uninvested and could cause it
to miss attractive investment opportunities or create a potential liability to that Fund arising out of its inability to fulfill a contract
to sell such securities.
Market
Risk. Investing in foreign markets generally involves certain risks
not typically associated with investing in the United States. The securities markets in many foreign countries will have substantially
lower trading volume than the U.S. markets. As a result, the securities of some foreign companies may be less liquid and experience more
price volatility than comparable domestic securities. Obtaining and/or enforcing judgments in foreign countries may be more difficult,
and there is generally less government regulation and supervision of foreign stock exchanges, brokers and issuers, each of which may make
it more difficult to enforce contractual obligations. Increased custodian costs as well as administrative costs (such as the need to use
foreign custodians) may also be associated with the maintenance of assets in foreign jurisdictions. In addition, transaction costs in
foreign securities markets are likely to be higher, since brokerage commission rates in foreign countries are likely to be higher than
in the United States.
Risks
of Developing/Emerging Market Countries.
Unless a Fund’s prospectus includes a different definition,
the Fund considers developing and emerging market countries to be those countries that are (i) generally recognized to be an emerging
market country by the international financial community, including the World Bank, (ii) determined by the Adviser to be an emerging market
country or (iii) its “country of risk” is an
12
emerging
market country as determined by a third party service provider such as Bloomberg. As of the date of this
SAI, the Adviser considers “emerging market countries” to generally include every country in the world except those countries
included in the MSCI World Index. The Adviser has broad discretion to identify countries that it considers to be emerging market countries
and may consider various factors in determining whether to classify a country as an emerging market country, including a country’s
relative interest rates, inflation rates, exchange rates, monetary and fiscal policies, trade and current account balances, legal and
political developments and any other specific factors the Adviser believes to be relevant. Because emerging market equity and emerging
market debt are distinct asset classes, a country may be deemed an emerging market country with respect to its equity only, its debt only,
both its equity and debt, or neither.
Investments
in developing and emerging market countries present risks in addition
to, or greater than, those presented by investments in foreign issuers generally, and may include the following risks:
i.
Restriction, to varying degrees, on foreign investment in stocks;
ii.
Repatriation of investment income, capital, and the proceeds of sales in foreign countries may require foreign governmental registration
and/or approval;
iii.
Greater risk of fluctuation in the value of foreign investments due to changes in currency exchange rates, currency control regulations
or currency devaluation. In addition, there may be higher rates of inflation and more rapid and extreme fluctuations in inflation rates
and greater sensitivity to interest rate changes;
iv.
Inflation and rapid fluctuations in inflation rates may have negative effects on the economies and securities markets of certain developing
and emerging market countries;
v.
Many of the developing and emerging market countries’ securities markets are relatively small or less diverse, have low trading
volumes, suffer periods of relative illiquidity, and are characterized by significant price volatility;
vi.
There is a risk in developing and emerging market countries that a future economic or political crisis could lead to price controls, forced
mergers of companies, expropriation or confiscatory taxation, seizure, nationalization, or creation of government monopolies;
vii.
Investments in such securities markets may be subject to unexpected market closures;
viii.
The taxation systems at the federal, regional and local levels in developing or emerging market countries may be less transparent and
inconsistently enforced, and subject to sudden change. Developing or emerging market countries may also have a higher degree of corruption
and fraud than developed market countries, as well as counterparties and financial institutions with less financial sophistication, creditworthiness
and/or resources;
ix.
Less developed legal systems allowing for enforcement of private property rights and/or redress for injuries to private property, such
as bankruptcy. The ability to bring and enforce actions in developing or emerging market countries, or to obtain information needed to
pursue or enforce such actions, may be limited and shareholder claims may be difficult or impossible to pursue; and
x.
Less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed
countries and, as a result, the nature and quality of such information may vary. Information about such companies may be less available
and reliable and, therefore, the ability to conduct adequate due diligence in developing or emerging markets may be limited which can
impede the Fund's ability to evaluate such companies. In addition, certain developing or emerging market countries may impose material
limitations on Public Company Accounting Oversight Board (“PCAOB”) inspection, investigation and enforcement capabilities
which can hinder the PCAOB’s ability to engage in independent oversight or inspection of accounting firms located in or operating
in certain developing or emerging markets. There
is no guarantee that the quality of financial reporting or the
audits conducted by audit firms of developing or emerging market issuers meet PCAOB standards.
13
Frontier
Markets. The risks associated with investments in frontier market
countries include all the risks associated with investments in developing and emerging markets. These risks are magnified for frontier
market countries because frontier markets countries generally have smaller economies, even less developed capital markets, and are traditionally
less accessible than traditional emerging and developing markets. As a result, investments in companies in frontier markets countries
are generally subject to a higher risk of loss than investments in companies in traditional emerging and developing market countries due
to less developed securities markets, different settlement procedures, greater price volatility, less developed governments and economies,
more government restrictions, and the limited ability of foreign entities to participate in certain privatization programs. Investments
in companies operating in frontier market countries are highly speculative in nature.
Investing
in Greater China Risk. Investments in companies located or operating
in Greater China involve risks not associated with investments in Western nations, such as nationalization, expropriation, or confiscation
of property; difficulty in obtaining and/or enforcing judgments; alteration or discontinuation of economic reforms; military conflicts,
either internal or with other countries; inflation, currency fluctuations and fluctuations in inflation and interest rates that may have
negative effects on the economy and securities markets of Greater China; and Greater China’s dependency on the economies of other
Asian countries, many of which are developing countries. Events in any one country within Greater China may impact the other countries
in the region or Greater China as a whole. For example, changes to their political and economic relationships with the mainland China
could adversely impact the Fund’s investments in Taiwan and Hong Kong.
Certain
securities issued by companies located or operating in Greater China, such as China A-shares, are
subject to trading restrictions, quota limitations, and clearing and settlement risks. Significant portions of the Chinese securities
markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown
a willingness to exercise that option in response to market volatility and other events. The liquidity of Chinese securities may shrink
or disappear suddenly and without warning as a result of adverse economic, market or political events, or adverse investor perceptions,
whether or not accurate.
Export
growth continues to be a major driver of China’s rapid economic growth. As a result, a reduction in spending
on Chinese products and services, the institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s
key trading partners may have an adverse impact on the Chinese economy. The current political climate has intensified concerns about a
potential trade war between China and the United States, as each country has recently imposed tariffs on the other country’s products.
These actions may trigger a significant reduction in international trade, the oversupply of certain manufactured goods, substantial price
reductions of goods and possible failure of individual companies and/or large segments of China’s export industry, which could
have a negative impact on the Fund’s performance. Events such as these and their consequences are difficult to predict and it is
unclear whether further tariffs may be imposed or other escalating actions may be taken in the future.
Additionally,
developing countries, such as those in Greater China, may subject the Fund’s investments to a
number of tax rules, and the application of many of those rules may be uncertain. Moreover, China has implemented a number of tax reforms
in recent years, and may amend or revise its existing tax laws and/or procedures in the future, possibly with retroactive effect. Changes
in applicable Chinese tax law could reduce the after-tax profits of the Fund, directly or indirectly, including by reducing the after-tax
profits of companies in China in which the Fund invests. Chinese taxes that may apply to the Fund’s investments include income
tax or withholding tax on dividends, interest or gains earned by the Fund, business tax and stamp duty. Uncertainties in Chinese tax rules
could result in unexpected tax liabilities for the Fund. Additionally,
any difficulties of the PCAOB to inspect audit work papers and
practices of PCAOB-registered accounting firms in China with respect to their audit work of U.S. reporting companies may impose significant
additional risks associated with investments in China.
Risks
of Investing in Chinese Variable Interest Entities. Many Chinese
companies have created a special structure, which is based in China, known as a variable interest entity (“VIE”) as a means
to circumvent limits
14
on
direct foreign ownership of equity in Chinese operating companies in certain sectors, such as internet, media,
education and telecommunications, imposed by the Chinese government. Typically in such an arrangement, a China-based operating company
establishes an offshore “holding” company in another jurisdiction that likely does not have the same disclosure, reporting,
and governance requirements as the United States. The holding company issues shares, i.e., is “listed”, on a foreign exchange
such as the New York Stock Exchange or the Hong Kong Stock Exchange. The listed holding company enters into service and other contracts
with the China-based operating company, typically through the China-based VIE. The VIE must be owned by Chinese nationals (and/or other
Chinese companies), which often are the VIE’s founders, in order to obtain the licenses and/or assets required to operate in the
restricted or prohibited sector in China. The operations and financial position of the VIE are included in consolidated financial statements
of the listed holding company. Foreign investors, including mutual funds and ETFs (such as the Fund), hold stock in the listed holding
company rather than directly in the China-based operating company.
The
VIE structure allows foreign shareholders to exert a degree of control and obtain economic benefits arising
from the operating company but without formal legal ownership because the listed holding company’s control over the operating company
is predicated entirely on contracts with the VIE. The listed holding company is distinct from the underlying operating company, and an
investment in the listed holding company represents exposure to a company that maintains service contracts with the operating company,
not equity ownership.
Investments
in companies that use VIEs may pose additional risks because the investment is made through
the listed holding company’s service and other contractual arrangements with the underlying Chinese operating company. As a result,
such investment may limit the rights of an investor with respect to the underlying Chinese operating company. The contractual arrangements
between the VIE and the operating company may not be as effective in providing operational control as direct equity ownership. The Chinese
government could determine at any time and without notice that the underlying contractual arrangements on which control of the VIE is
based violate Chinese law. While VIEs are a longstanding industry practice, well known to Chinese officials and regulators, VIEs historically
have not been formally recognized under Chinese law. The owners of the VIE could decide to breach the contractual arrangements with the
listed holding company and it is uncertain whether the contractual arrangements, which may be subject to conflicts of interest between
the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration bodies. Prohibitions of these structures
by the Chinese government, or the inability to enforce such contracts, from which the shell company derives its value, would likely cause
the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent loss, and in turn, adversely affect the Fund’s
returns and net asset value.
The
Chinese government previously placed restrictions on China-based companies raising capital offshore
in certain sectors, including through VIEs, and investors face uncertainty about future actions by the Chinese government that could significantly
affect the operating company’s financial performance and the enforceability of the contractual arrangements underlying the VIE
structure. It is uncertain whether Chinese officials or regulators will withdraw their acceptance of the VIE structure, or whether any
new laws, rules or regulations relating to VIE structures will be adopted and what impact such laws may have on foreign investors. There
is a risk that China might prohibit the existence of VIEs or sever their ability to transmit economic and governance rights to foreign
individuals and entities; if so, the market value of any associated portfolio holdings would likely suffer substantial, detrimental, and
possibly permanent loss.
Chinese
companies, including those listed on U.S. exchanges, are generally not subject to the same degree
of regulatory requirements, accounting standards or auditor oversight as companies in more developed countries. As a result, information
about VIEs may be less reliable or complete. Foreign companies with securities listed on U.S. exchanges, including those that utilize
VIEs, may be delisted if they do not meet the requirements of the listing exchange, the Public Company Accounting Oversight Board (“PCAOB”)
and the U.S. government, which could significantly decrease the liquidity and value of such securities. Actions by the U.S. government,
such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may
negatively impact the liquidity and value of such securities.
15
Risks
of Investments in China A-shares through the Stock Connect Program.
The Shanghai-Hong Kong Stock Connect program and the Shenzhen-Hong Kong Stock Connect program (both programs collectively referred to
as the Connect Program) are securities trading and clearing programs through which the Funds can trade eligible listed China A-shares.
The Connect Program is subject to quota limitations and an investor cannot purchase and sell the same security on the same trading day,
which may restrict a Fund’s ability to invest in China A-shares through the Connect Program and to enter into or exit trades on
a timely basis. The Shanghai and Shenzhen markets may be open at a time when the Connect Program is not trading, with the result that
prices of China A-shares may fluctuate at times when the Fund is unable to add to or exit its position. Only certain China A-shares are
eligible to be accessed through the Connect Program. Such securities may lose their eligibility at any time, in which case they could
be sold but could no longer be purchased through the Connect Program. Because the Connect Program is still relatively in its early stages,
the actual effect on the market for trading China A-shares with the introduction of large numbers of foreign investors is currently unknown.
The Connect Program is subject to regulations promulgated by regulatory authorities for the Shanghai Stock Exchange, the Stock Exchange
of Hong Kong Limited, and the Shenzhen Stock Exchange, and further regulations or restrictions, such as limitations on redemptions or
suspension of trading, may adversely impact the Connect Program, if the authorities believe it necessary to assure orderly markets or
for other reasons. There is no guarantee that all three exchanges will continue to support the Connect Program in the future and no assurance
that further regulations will not adversely affect the availability of securities under Stock Connect or other operational arrangements.
Investments
in China A-shares may not be covered by the securities investor protection programs of the exchanges
and, without the protection of such programs, will be subject to the risk of default by the broker. In the event that the depository of
the Shanghai Stock Exchange and the Shenzhen Stock Exchange defaulted, a Fund may not be able to recover fully its losses from the depository
or may be delayed in receiving proceeds as part of any recovery process. In addition, because all trades on the Connect Program in respect
of eligible China A-shares must be settled in Renminbi (RMB), the Chinese currency, the Funds investing through the Connect Program must
have timely access to a reliable supply of offshore RMB, which cannot be guaranteed. The existence of a liquid trading market for China
A-shares may depend on whether there is supply of, and demand for, such China A-shares. Market volatility and settlement difficulties
in the China A-shares markets may also result in significant fluctuations in the prices of the securities traded on such markets.
China
A-shares purchased through the Connect Program are held in nominee name and not the Fund’s name
as the beneficial owner. It is possible, therefore, that a Fund’s ability to exercise its rights as a shareholder and to pursue
claims against the issuer of China A-shares may be limited because the nominee structure has not been tested in Chinese courts, as Chinese
courts generally have limited experience in applying the concept of beneficial ownership and the law in that area continues to evolve.
In addition, a Fund may not be able to participate in corporate actions affecting China A-shares held through the Connect Program due
to time constraints or for other operational reasons.
Trades
on the Connect Program are subject to certain requirements prior to trading. If these requirements are
not completed prior to the market opening, a Fund cannot sell the shares on that trading day. In addition, these requirements may limit
the number of brokers that a Fund may use to execute trades. If an investor holds 5% or more of the total shares issued by a China A-share
issuer, whether or not such shares were acquired through the Stock Connect Program, the investor must return any profits obtained from
the purchase and sale of those shares if both transactions occur within a six-month period. If a Fund holds 5% or more of the total shares
of a China A-share issuer through its Connect Program investments, its profits may be subject to these limitations. All accounts managed
by the Adviser and/or its affiliates will be aggregated for purposes of this 5% limitation, which makes it more likely that a Fund's profits
may be subject to these limitations.
Risks
of Investments in the China Interbank Bond Market through the Bond Connect Program.
The Funds may invest in China onshore bonds traded on the China Interbank Bond Market (“CIBM”) through the China –
Hong Kong Bond Connect Program (“Bond Connect”). In China, the Hong Kong Monetary Authority Central Moneymarkets Unit holds
Bond Connect securities on behalf of ultimate investors (such as the Funds) in accounts maintained with a China-based custodian (either
the China Central Depository & Clearing Co. or
16
the
Shanghai Clearing House). This recordkeeping system subjects a Fund to various risks, including the risks
of settlement delays and counterparty default of the China custodian and Hong Kong custody agent. In addition, the Fund may have a limited
ability to enforce rights as a bondholder because enforcing the ownership rights of a beneficial holder of Bond Connect securities is
untested and courts in China have limited experience in applying the concept of beneficial ownership.
Bond
Connect uses the trading infrastructure of both Hong Kong and China and is not available on trading
holidays in Hong Kong. As a result, prices of securities purchased through Bond Connect may fluctuate at times when the Fund is unable
to add to or exit its position. Securities offered through Bond Connect may lose their eligibility for trading through Bond Connect at
any time. If Bond Connect securities lose their eligibility for trading through Bond Connect, they may be sold but can no longer be purchased
through Bond Connect.
Because
Bond Connect trades are settled in RMB, the Funds investing through Bond Connect must have timely
access to a reliable supply of offshore RMB, which cannot be guaranteed.
Market
volatility and potential lack of liquidity due to low trading volume of certain bonds on the CIBM may result
in prices of such bonds fluctuating significantly, exposing a Fund to liquidity and volatility risks. The bid-ask spreads of the prices
of such securities may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.
Bonds traded on the CIBM may be difficult or impossible to sell, which may impact a Fund’s ability to acquire or dispose of such
securities at their expected prices.
Bond
Connect is relatively new and its effects on the Chinese interbank bond market are uncertain. Trading
through Bond Connect is performed through newly developed trading platforms and operational systems, and in the event of systems malfunctions
or extreme market conditions, trading via Bond Connect could be disrupted. There can be no assurance as to Bond Connect’s continued
existence or whether future developments regarding Bond Connect (including further interpretation and guidance provided by regulators
in Hong Kong and China) may restrict or adversely affect the Fund’s investments or returns. Finally, uncertainties in China tax
rules governing taxation of income and gains from investments via Bond Connect could result in unexpected tax liabilities for a Fund.
Investment
in the Private Fund. The Invesco Developing Markets Fund, an Underlying
Fund of certain of the Asset Allocation Funds, may invest up to 10% of its net assets in a private investment vehicle organized under
Delaware law (the “Private Fund”). The Private Fund seeks long term capital appreciation by investing primarily in companies
established or operating in the People’s Republic of China. It is expected that the Private Fund will invest a significant portion
of its assets in class A-shares of Chinese companies (“China A Shares”) and other securities available to investors holding
a Qualified Foreign Institutional Investor (“QFII”) license in order to be classified and regulated as an “open-end
Private Fund” for purposes of Chinese regulations. The Private Fund may also invest in shares or other financial instruments listed,
quoted or traded on any China or Hong Kong stock exchange which have a significant proportion of their ownership, assets or other interests
in China, or other investments. Such other financial instruments may include, without limitation, class B-shares of Chinese companies
listed in China and shares of Hong Kong-listed companies with a Chinese parent. In addition, although it is not currently expected to
do so, the Private Fund may invest a portion of its assets in certain exchanged-traded and over-the-counter financial instruments from
countries other than China.
Because
the Invesco Developing Markets Fund may invest a portion of its assets in the Private Fund, which
may hold certain of the investments described in the Fund’s prospectus and this SAI, the Fund may be considered to be investing
indirectly in those investments through the Private Fund. Therefore, references in each Fund’s prospectus and in this SAI to investments
by the Fund also may be deemed to include the Fund’s indirect investments through the Private Fund.
The
Private Fund is not registered under the 1940 Act and is not subject to its investor protections, except as
noted in each Fund’s prospectus or this SAI. The Fund, as a shareholder of the Private Fund, does not have all of the protections
offered by the 1940 Act. However, the Private Fund is controlled by Invesco
17
Developing
Markets Fund and managed by its managing member (the “Managing Member”), OppenheimerFunds,
Inc. Therefore, Invesco Developing Markets Fund’s ownership of the Private Fund make it unlikely that the Private Fund would take
action contrary to the interests of the Fund or its shareholders.
The
Fund’s Board has oversight responsibility for the investment activities of the Fund, including its expected
investment in the Private Fund, and the Fund’s role as a shareholder of the Private Fund. The Fund applies its investment restrictions
and compliance policies and procedures on a look-through basis to the Private Fund, including, without limitation, those restrictions,
policies and procedures relating to portfolio leverage, liquidity, brokerage, and the timing and method of the valuation of the Private
Fund’s portfolio investments and interests in the Private Fund.
Investing
in securities of Chinese companies involves certain risks and considerations not typically associated
with investing in securities of U.S. issuers. The heavy concentration of market capitalization and trading volume in a small number of
Chinese companies representing a limited number of industries may result in fewer investment opportunities. The small size of the market
for Chinese securities and a low volume of trading for certain issues could also result in a lack of liquidity and in price volatility.
Investments in Chinese securities are subject to currency devaluations and other currency exchange rate fluctuations, and there may be
an insufficient market to engage in hedging transactions to minimize renminbi foreign exchange risk. The nature and extent of intervention
by the Chinese government in the Chinese securities markets may have an adverse impact on investments in Chinese securities. Further,
limitations on the use of brokers, higher rates of inflation, greater political, economic and social uncertainty, governmental restrictions
on potential investment opportunities, custody requirements, and investment and repatriation restrictions may pose risks to investments
in Chinese securities. In addition, accounting, auditing and financial reporting standards in China are different from U.S. standards
and, therefore, disclosure of certain material information may not be made. Less information may be available to the Fund and other investors
than would be the case if the Fund’s investments were restricted to securities of U.S. issuers. There is also generally less governmental
regulation of the securities industry in China, and less enforcement of regulatory provisions relating thereto, than in the United States.
Moreover, it may be more difficult to obtain a judgment in a court outside the United States. Investments in Chinese securities may be
subject to withholding taxes, as well as currency repatriation restrictions imposed by the government of China from time to time. The
Chinese system of taxation is not as well settled as that of non-emerging market countries and changes in the Chinese tax system may have
retroactive effects.
Further,
the Private Fund may invest substantially all of its assets in a limited number of issuers or a single
issuer. To the extent that it does so, the value of its investments may be affected to a greater extent by adverse conditions affecting
such issuers.
Risks
Related to Russian Invasion of Ukraine. In late February 2022,
Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe,
the North Atlantic Treaty Organization (NATO), and the West. Russia’s invasion, the responses of countries and political bodies
to Russia’s actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse
effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural
gas.
Following
Russia’s actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and
France, among others, as well as the European Union, issued broad-ranging economic sanctions against Russia. The sanctions freeze certain
Russian assets and prohibit trading by individuals and entities in certain Russian securities,
engaging in certain private transactions, and doing business with
certain Russian corporate entities, large financial institutions, officials and oligarchs. The sanctions include a commitment by certain
countries and the European Union to remove selected Russian banks from the Society for Worldwide Interbank Financial Telecommunications,
commonly called “SWIFT,” the electronic network that connects banks globally, and imposed restrictive measures to prevent
the Russian Central Bank from undermining the impact of the sanctions. A number of large corporations have since
withdrawn from Russia or suspended or curtailed their Russia-based
operations.
18
The
imposition of these current sanctions (and the potential for further sanctions in response to Russia’s continued
military activity) and other actions undertaken by countries and businesses may adversely impact various sectors of the Russian economy,
including, but not limited to, the financials, energy, metals and mining, engineering, and defense and defense-related materials sectors.
Such actions also may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble, and could impair
the ability of a Fund to buy, sell, receive, or deliver those securities. Moreover, the measures could adversely affect global financial
and energy markets and thereby negatively affect the value of a Fund’s investments beyond any direct exposure to Russian issuers
or those of adjoining geographic regions.
In
response to sanctions, the Russian Central Bank raised its interest rates and banned sales of local securities
by foreigners. Russia also prevented the export of certain goods and payments to foreign shareholders of Russian securities. Russia may
take additional countermeasures or retaliatory actions, which may further impair the value and liquidity of Russian securities and Fund
investments. Such actions could, for example, include restricting gas exports to other countries, the seizure of U.S. and European residents’
assets, or undertaking or provoking other military conflict elsewhere
in Europe, any of which could exacerbate negative consequences on global financial markets and the economy. The actions discussed above
could have a negative effect on the performance of Funds that have exposure to Russia. While diplomatic efforts have been ongoing, the
conflict between Russia and Ukraine is unpredictable and has the potential to result in broader military actions. The duration of the
ongoing conflict and corresponding sanctions and related events cannot be predicted and may result in a negative impact on Fund performance
and the value of Fund investments, particularly as it relates to Russian exposure.
Passive
Foreign Investment Companies. Under U.S. tax laws, passive foreign
investment companies (PFICs) are those foreign corporations which generate primarily “passive” income. Passive income is
defined as any income that is considered foreign personal holding company income under the Internal Revenue Code of 1986, as amended (Code).
For federal tax purposes, a foreign corporation is deemed to be a PFIC if 75% or more of its gross income during a taxable year is passive
income or if 50% or more of its assets during a taxable year are assets that produce, or are held to produce, passive income.
Foreign
mutual funds are generally deemed to be PFICs, since nearly all of the income of a mutual fund is passive
income. Foreign mutual funds investments may be used to gain exposure to the securities of companies in countries that limit or prohibit
direct foreign investment; however, investments in foreign mutual funds by a Fund are subject to limits under the Investment Company Act.
Other
types of foreign corporations may also be considered PFICs if their percentage of passive income or
passive assets exceeds the limits described above. A determination as to whether a foreign corporation is considered a PFIC is based on
an interpretation of complex provisions of the tax law. Accordingly, there can be no assurance that a conclusion regarding a corporation's
status as a PFIC will not be challenged by the Internal Revenue Service (IRS) and conclusions as to a corporation's PFIC status may vary
depending on who is doing the analysis. Unless a Fund makes an election with respect to its investment in a PFIC, which election may not
always be possible, income from the disposition of a PFIC investment and from certain PFIC distributions may be subject to adverse tax
treatment. The application of the PFIC rules may affect, among other things, the character of gains, the amount of gain or loss and the
timing of the recognition of income with respect to PFIC shares, and may subject a Fund to tax on certain income from PFIC shares. Federal
tax laws impose severe tax penalties for failure to properly report investment income from PFICs. Although every effort is made to ensure
compliance with federal tax reporting requirements for these investments, foreign corporations that are PFICs for federal tax purposes
may not always be recognized as such or may not provide a Fund with all information required to report, or make an election with respect
to, such investment.
A
foreign issuer will not be treated as a PFIC with respect to a shareholder if such issuer is a controlled foreign
corporation for U.S. federal income tax purposes (CFC) and the shareholder holds (directly, indirectly, or constructively) 10% or more
of the voting interests in or total value of such issuer. In such a case, the shareholder generally would be required to include in gross
income each year, as ordinary income, its share of certain amounts of a CFC’s income, whether or not the CFC distributes such shareholder’s
share of such amounts to it. Under proposed regulations, such income will be considered “qualifying income” for purposes
of
19
a shareholder’s
qualification as a regulated investment company only to the extent such income is timely distributed
to that shareholder.
Additional
risks of investing in other investment companies are described under “Other Investment Companies.”
Foreign
Government Obligations. Debt
securities issued by foreign governments are often, but not always, supported by the full faith and credit of the foreign governments,
or their subdivisions, agencies or instrumentalities, that issue them. These securities involve the risks discussed above under “Foreign
Securities”. Additionally, the issuer of the debt or the governmental authorities that control repayment of the debt may be unwilling
or unable to pay interest or repay principal when due. Political or economic changes or the balance of trade may affect a country’s
willingness or ability to service its debt obligations. Periods of economic uncertainty may result in the volatility of market prices
of sovereign debt obligations, especially debt obligations issued by the governments of developing countries. Foreign government obligations
of developing countries, and some structures of emerging market debt securities, both of which are generally below investment grade, are
sometimes referred to as “Brady Bonds.” The failure of a sovereign debtor to implement economic reforms, achieve specified
levels of economic performance, or repay principal or interest when due may result in the cancellation of third-party commitments to lend
funds to the sovereign debtor, which may impair the debtor’s ability or willingness to service its debts.
Foreign
Exchange Transactions. Certain Funds may invest in foreign currency-denominated
securities and have the authority to purchase and sell put and call options on foreign currencies (foreign currency options), foreign
currency futures contracts and related options, and currency-related swaps, and may engage in foreign currency transactions either on
a spot (i.e., for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time or through
forward foreign currency contracts (see “Forward Foreign Currency Contracts”). The use of these instruments may result in
a loss to a Fund if the counterparty to the transaction (particularly with respect to OTC derivatives, as discussed further below) does
not perform as promised, including because of such counterparty’s bankruptcy or insolvency.
The
Funds will incur costs in converting assets from one currency to another. Foreign exchange dealers may
charge a fee for conversion. In addition, dealers may realize a profit based on the difference between the prices at which they buy and
sell various currencies in the spot and forward markets.
The
Fund will generally engage in these foreign exchange transactions in order to complete a purchase or sale
of foreign currency denominated securities. The Funds may also use foreign currency options, forward foreign currency contracts, foreign
currency futures contracts and currency-related swap contracts to increase or reduce exposure to a foreign currency, to shift exposure
from one foreign currency to another in a cross currency hedge or to enhance returns. These transactions are intended to minimize
the risk of loss due to a decline in the value of the hedged currencies; however, at the same time, they tend to limit any potential gain
which might result should the value of such currencies increase.
The
Fund may purchase and sell foreign currency futures contracts and purchase and write foreign currency
options to increase or decrease its exposure to different foreign currencies. The Fund may also purchase and write foreign currency options
in connection with foreign currency futures contracts or forward foreign currency contracts. Foreign currency futures contracts are traded
on exchanges and have standard contract sizes and delivery dates. Most foreign currency futures contracts call for payment or delivery
in U.S. dollars. The uses and risks of foreign currency futures contracts are similar to those of futures contracts relating to securities
or indices (see “Futures Contracts”). Foreign currency futures contracts’ values can be expected to correlate with
exchange rates but may not reflect other factors that affect the value of the Fund’s investments.
Whether
or not any hedging strategy will be successful is highly uncertain, and use of hedging strategies may
leave a Fund in a less advantageous position than if a hedge had not been established. Moreover, it is impossible to forecast with precision
the market value of portfolio securities at the expiration of a forward foreign currency contract. Accordingly, a Fund may be required
to buy or sell additional currency on the spot
20
market
(and bear the expense of such transaction) if Invesco’s or the Sub-Advisers’ predictions regarding the movement
of foreign currency or securities markets prove inaccurate.
Certain
Funds may hold a portion of their assets in bank deposits denominated in foreign currencies, so as
to facilitate investment in foreign securities as well as protect against currency fluctuations and the need to convert such assets into
U.S. dollars (thereby also reducing transaction costs). To the extent these monies are converted back into U.S. dollars, the value of
the assets so maintained will be affected favorably or unfavorably by changes in foreign currency exchange rates and exchange control
regulations. Foreign exchange transactions may involve some of the risks of investments in foreign securities. For a discussion of tax
considerations relating to foreign currency transactions, see “Dividends, Distributions and Tax Matters — Tax Matters —
Tax Treatment of Portfolio Transactions — Foreign currency transactions.”
Under
definitions adopted by the Commodity Futures Trading Commission (CFTC) and the U.S. Securities
and Exchange Commission (SEC), non-deliverable foreign exchange forwards and OTC foreign exchange options are considered “swaps.”
These instruments are therefore included in the definition of “commodity interests” for purposes of determining whether
fund service providers qualify for certain exemptions and exclusions from regulation by the CFTC. Although non-deliverable forward foreign
currency contracts have historically been traded in the OTC market, as swaps they may in the future be regulated to be centrally cleared
and traded on public execution facilities. For more information, see “Forward Foreign Currency Contracts” and “Swaps.”
Floating
Rate Corporate Loans and Corporate Debt Securities of Non-U.S. Borrowers.
Certain Funds and Underlying Funds may invest in floating rate loans that are made to and floating rate debt securities that are issued
by non-U.S. borrowers, provided that the loans are U.S. dollar-denominated or otherwise provide for payment in U.S. dollars, and any such
borrower meets the credit quality standards established by Invesco and the Sub-Advisers for U.S. borrowers. The Funds similarly may invest
in floating rate loans and floating rate debt securities made to U.S. borrowers with significant non-U.S. dollar-denominated revenues;
provided that the loans are U.S. dollar-denominated or otherwise provide for payment to the Fund in U.S. dollars. In cases where the floating
rate loans or floating rate debt securities are not denominated in U.S. dollars, provisions will be made for payments to the lenders,
including the Fund, in U.S. dollars pursuant to foreign currency swaps or the currency risk of the transaction will be hedged using forward
foreign currency contracts.
Foreign
Bank Obligations. Foreign bank obligations include certificates
of deposit, banker’s acceptances and fixed time deposits and other obligations (a) denominated in U.S. dollars and issued by a
foreign branch of a domestic bank (Eurodollar Obligations), (b) denominated in U.S. dollars and issued by a domestic branch of a foreign
bank (Yankee Dollar Obligations), or (c) issued by foreign branches of foreign banks. Foreign banks are not generally subject to examination
by any U.S. government agency or instrumentality.
Foreign
Debt Securities. Foreign debt securities are debt securities that
are issued and/or settled outside the United States and may be backed by foreign guarantees. Debt securities issued by a corporation or
other issuer domiciled outside the United States that are dollar denominated and traded in the United States are not considered foreign
securities. Although denominated in U.S. dollars, Foreign Debt Securities may entail some or all of the risks set forth below.
Political
and Economic Risk. The economies of many of the countries in which
the Funds may invest may not be as developed as the United States' economy and may be subject to significantly different forces. Political
or social instability and development, expropriation or confiscatory taxation, and limitations on the removal of Funds or other assets
could also adversely affect the value of the Funds' investments.
Regulatory
Risk. Foreign companies may not be registered with the SEC and
are generally not subject to the regulatory controls and disclosure requirements imposed on United States issuers. Foreign companies may
not be subject to uniform accounting, auditing and financial reporting standards, corporate governance practices and requirements comparable
to those applicable to domestic companies. As a result, there is generally less publicly available information about foreign securities
than is available about domestic
21
securities.
Income from foreign securities owned by the Funds may be reduced by a withholding tax at the source,
which tax would reduce dividend income payable to the Funds' shareholders
Market
Risk. The securities markets in many of the countries in which
the Funds invest will have substantially less trading volume than the major United States markets. As a result, the securities of some
foreign companies may be less liquid and experience more price volatility than comparable domestic securities. Increased custodian costs
as well as administrative costs (such as the need to use foreign custodians) may be associated with the maintenance of assets in foreign
jurisdictions. There is generally less government regulation and supervision of foreign stock exchanges, brokers and issuers which may
make it difficult to enforce contractual obligations.
Exchange-Traded
Funds
Exchange-Traded
Funds (ETFs). Most
ETFs are registered under the 1940 Act as investment companies, although others may not be registered as investment companies and are
registered as commodity pools. Therefore, a Fund’s purchase of shares of an ETF may be subject to the restrictions on investments
in other investment companies discussed under “Other Investment Companies.” ETFs have management fees, which increase their
cost. The Fund may invest in ETFs advised by unaffiliated advisers as well as ETFs advised by Invesco Capital. Invesco, the Sub-Advisers
and Invesco Capital are affiliates of each other as they are all indirect wholly-owned subsidiaries of Invesco Ltd.
Generally,
ETFs hold portfolios of securities, commodities and/or currencies that are designed to replicate,
as closely as possible before expenses, the performance of a specified market index. The performance results of ETFs will not replicate
exactly the performance of the pertinent index due to transaction and other expenses, including fees to service providers, borne by ETFs.
Furthermore, there can be no assurance that the portfolio of securities, commodities and/or currencies purchased by an ETF will replicate
a particular index. Some ETFs are actively managed and instead of replicating a particular index they seek to outperform it, or outperform
a basket of securities or price of a commodity or currency.
Only
Authorized Participants (APs) may engage in creation or redemption transactions directly with ETFs. ETF
shares are sold to and redeemed by APs at net asset value only in large blocks called creation units and redemption units, respectively.
Such market makers have no obligation to submit creation or redemption orders; consequently, there is no assurance that market makers
will establish or maintain an active trading market for ETF shares. In addition, to the extent that APs exit the business or are unable
to proceed with creation and/or redemption orders with respect to an ETF and no other AP is able to step forward to create or redeem units
of an ETF, an ETF’s shares may be more likely to trade at a premium or discount to net asset value and possibly face trading halts
and/or delisting. ETF shares may be purchased and sold by all other investors in secondary market trading on national securities exchanges,
which allows investors to purchase and sell ETF shares at their market price throughout the day.
Investments
in ETFs generally present the same primary risks as an investment in a conventional mutual fund
that has the same investment objective, strategy and policies. Investments in ETFs further involve the same risks associated with a direct
investment in the types of securities, commodities and/or currencies included in the indices the ETFs are designed to replicate. In addition,
shares of an ETF may trade at a market price that is higher or lower than their net asset value and an active trading market in such shares
may not develop or continue. Moreover, trading of an ETF’s shares may be halted if the listing exchange’s officials deem
such action to be appropriate, the shares are de-listed from the exchange, or the activation of market-wide “circuit breakers”
(which are tied to large decreases in stock prices) halts stock trading generally.
Non-Transparent
Actively Managed Exchange-Traded Fund Risk. An Underlying Fund
that is a non-transparent actively managed exchange-traded fund publishes each Business Day on its website a “Substitute Basket,”
which is designed to closely track the daily performance of the Underlying Fund but is not the Underlying Fund’s actual portfolio.
The Substitute Basket often will include a significant percentage of the securities held in the Underlying Fund’s portfolio, but
it will exclude (or modify the weightings of) certain securities held in the Underlying Fund’s portfolio, such as those securities
that the Underlying Fund’s portfolio managers are actively looking to purchase or sell. Disclosure of the Substitute Basket structure
may affect the
22
price
at which the Underlying Fund’s shares trade in the secondary market. Although the Substitute Basket is intended
to provide investors with enough information to allow for an effective arbitrage mechanism that will keep the market price of the Underlying
Fund at or close to the Underlying Fund’s NAV per share, there is a risk that market prices will vary significantly from NAV. By
trading on the basis of a published Substitute Basket, the Underlying Fund may trade at a wider bid/ask spread than ETFs that publish
their full portfolios on a daily basis, and therefore, may cost investors more to trade. These risks may increase during periods of market
disruption or volatility. In addition, although the Underlying Fund seeks to benefit from keeping its portfolio information secret, market
participants may attempt to use the Substitute Basket to identify the Underlying Fund’s trading strategy. If successful, this could
result in such market participants engaging in certain predatory trading practices that may have the potential to harm the Underlying
Fund and its shareholders, such as front running the Underlying Fund’s trades of portfolio securities.
Exchange-Traded
Notes
Exchange-Traded
Notes (ETNs). ETNs are senior, unsecured, unsubordinated debt securities
whose returns are linked to the performance of a particular market benchmark or strategy, minus applicable fees. ETNs are traded on an
exchange (e.g., the New York Stock Exchange) during normal trading hours; however, investors can also hold the ETN until maturity. At
maturity, the issuer pays to the investor a cash amount equal to the principal amount, subject to the day’s market benchmark or
strategy factor. ETNs do not make periodic coupon payments or provide principal protection. ETNs are subject to credit risk, including
the credit risk of the issuer, and the value of the ETN may drop due to a downgrade in the issuer’s credit rating, despite the
underlying market benchmark or strategy remaining unchanged. The value of an ETN may also be influenced by time to maturity, level of
supply and demand for the ETN, volatility and lack of liquidity in underlying assets, changes in the applicable interest rates, changes
in the issuer’s credit rating, and economic, legal, political, or geographic events that affect the referenced underlying asset.
When a Fund invests in ETNs it will bear its proportionate share of any fees and expenses borne by the ETN. A decision to sell ETN holdings
may be limited by the availability of a secondary market. In addition, although an ETN may be listed on an exchange, the issuer may not
be required to maintain the listing, and there can be no assurance that a secondary market will exist for an ETN.
ETNs
are also subject to tax risk. No assurance can be given that the Internal Revenue Service (IRS) will accept,
or a court will uphold, how ETNs are characterized or treated for tax purposes. Further, the IRS and Congress are considering proposals
that would change the timing and character of income and gains from ETNs.
An
ETN that is tied to a specific market benchmark or strategy may not be able to replicate and maintain exactly
the composition and relative weighting of securities, commodities or other components in the applicable market benchmark or strategy.
Some ETNs that use leverage can, at times, be relatively illiquid, and thus they may be difficult to purchase or sell at a fair price.
Leveraged ETNs are subject to the same risk as other instruments that use leverage in any form.
The
market value of ETNs may differ from their market benchmark or strategy. This difference in price may
be due to the fact that the supply and demand in the market for ETNs at any point in time is not always identical to the supply and demand
in the market for the securities, commodities or other components underlying the market benchmark or strategy that the ETN seeks to track.
As a result, there may be times when an ETN trades at a premium or discount to its market benchmark or strategy.
Debt
Investments
U.S.
Government Obligations. U.S.
government obligations are
obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities, including bills, notes and bonds issued by
the U.S. Treasury, as well as "stripped" or "zero coupon" U.S. Treasury obligations.
U.S.
government obligations may be, (i) supported by the full faith
and credit of the U.S. Treasury, (ii) supported by the right of the issuer to borrow from the U.S. Treasury, (iii) supported by the discretionary
authority of the U.S. government to purchase the agency’s obligations, or (iv) supported only by the credit of
23
the
instrumentality. There is a risk that the U.S. government may choose
not to provide financial support to U.S. government-sponsored agencies or instrumentalities if it is not legally obligated to do so. In
that case, if the issuer were to default, a Fund holding securities of such issuer might not be able to recover its investment from the
U.S. government. For example, while the U.S. government has provided financial support to Federal National Mortgage Association (FNMA)
and Federal Home Loan Mortgage Corporation (FHLMC), no assurance can be given that the U.S. government will always do so, since the U.S.
government is not so obligated by law. There also is no guarantee that the government would support Federal Home Loan Banks. Accordingly,
securities of FNMA, FHLMC and Federal Home Loan Banks, and other agencies, may involve a risk of non-payment of principal and interest.
Any downgrade of the credit rating of the securities issued by the U.S. government may result in a downgrade of securities issued by its
agencies or instrumentalities, including government-sponsored entities. Additionally, from time to time uncertainty regarding the status
of negotiations in the U.S. government to increase the statutory debt limit, commonly called the “debt ceiling,” could increase
the risk that the U.S. government may default on payments on certain U.S. government securities, cause the credit rating of the U.S. government
to be downgraded, increase volatility in the stock and bond markets, result in higher interest rates, reduce prices of U.S. Treasury securities,
and/or increase the costs of various kinds of debt. If a U.S. government-sponsored entity is negatively impacted by legislative or regulatory
action, is unable to meet its obligations, or its creditworthiness declines, the performance of a Fund that holds securities of that entity
will be adversely impacted.
Inflation-Indexed
Bonds.
Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted according to the rate of inflation.
Two structures are common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of
the bond. Most other issuers pay out the Consumer Price Index (CPI) accruals as part of a semiannual coupon.
Inflation-indexed
securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although
it is possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on a semi-annual
basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a fund purchased an inflation-indexed bond
with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and inflation over the first six months was
1%, the mid-year par value of the bond would be $1,010 and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%).
If inflation during the second half of the year resulted in the whole years’ inflation equaling 3%, the end-of-year par value of
the bond would be $1,030 and the second semiannual interest payment would be $15.45 ($1,030 times 1.5%).
If
the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be
adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will
be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury
inflation-indexed bonds, even during a period of deflation. However, the current market value of the bonds is not guaranteed, and will
fluctuate. Certain Funds may also invest in other inflation related bonds which may or may not provide a similar guarantee. If a guarantee
of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original principal.
The
value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real
interest rates in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if inflation
were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of inflation-indexed
bonds. In contrast, if nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a
decrease in value of inflation-indexed bonds.
While
these securities are expected to be protected from long-term inflationary trends, short-term increases
in inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to changes in
currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the bond’s
inflation measure.
24
The
periodic adjustment of U.S. inflation-indexed bonds is tied to the Consumer Price Index for Urban Consumers
(CPI-U), which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living,
made up of components such as housing, food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally
adjusted to reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any foreign
inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover, there can be no assurance
that the rate of inflation in a foreign country will be correlated to the rate of inflation in the United States.
Any
increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,
even though investors do not receive their principal until maturity.
Temporary
Investments. Certain Funds may invest a portion of their respective
assets in affiliated money market funds or in other types of money market instruments in which those funds would invest or other short-term
U.S. government securities for cash management purposes. Each Fund may invest up to 100% of its assets in investments that may be inconsistent
with the Fund's principal investment strategies for temporary defensive purposes in anticipation of or in response to adverse market,
economic, political or other conditions, or atypical circumstances such as unusually large cash inflows or redemptions. As a result, a
Fund may not achieve its investment objective.
Changing
Interest Rates. In a low or negative interest rate environment,
debt securities may trade at, or be issued with, negative yields, which means the purchaser of the security may receive at maturity less
than the total amount invested. In addition, in a negative interest rate environment, if a bank charges negative interest, instead of
receiving interest on deposits, a depositor must pay the bank fees to keep money with the bank. To the extent a Fund holds a negatively-yielding
debt security or has a bank deposit with a negative interest rate, the Fund would generate a negative return on that investment. Cash
positions may also subject a Fund to increased counterparty risk to the Fund's bank. Debt market conditions are highly unpredictable and
some parts of the market are subject to dislocations. In the past, the U.S. government and certain foreign central banks have taken steps
to stabilize markets by, among other things, reducing interest rates. To the extent such actions are pursued, they present heightened
risks to debt securities, and such risks could be even further heightened if these actions are unexpectedly or suddenly reversed or are
ineffective in achieving their desired outcomes. In recent years, the U.S. government began implementing increases to the federal funds
interest rate and there may be further rate increases. As interest rates rise, there is risk that rates across the financial system also
may rise. To the extent rates increase substantially and/or rapidly, the Funds may be subject to significant losses.
In
a low or negative interest rate environment, some investors may
seek to reallocate assets to other income-producing assets. This may cause the price of such higher yielding instruments to rise, could
further reduce the value of instruments with a negative yield, and may limit a Fund's ability to locate fixed income instruments containing
the desired risk/return profile. Changing interest rates, including, rates that fall below zero, could have unpredictable effects on the
markets and may expose fixed income markets to heightened volatility, increased redemptions, and potential illiquidity.
With
respect to a money market fund, which seeks to maintain a stable $1.00 price per share, a low or negative
interest rate environment could impact the money market fund’s ability to maintain a stable $1.00 share price. During a low or
negative interest rate environment, such money market fund may reduce the number of shares outstanding on a pro rata basis through reverse
stock splits, negative dividends or other mechanisms to seek to maintain a stable $1.00 price per share, to the extent permissible by
applicable law and its organizational documents. Alternatively, the money market fund may discontinue using the amortized cost method
of valuation to maintain a stable $1.00 price per share and establish a fluctuating NAV per share rounded to four decimal places by using
available market quotations or equivalents.
Mortgage-Backed
and Asset-Backed Securities. Mortgage-backed
and asset-backed securities include
commercial mortgage-backed securities (CMBS) and residential mortgage-backed
securities (RMBS).
Mortgage-backed
securities are mortgage-related securities issued or guaranteed by the U.S.
25
government,
its agencies and instrumentalities, or issued by non-government entities, such as commercial banks and other private lenders. Mortgage-related
securities represent ownership in pools of mortgage loans assembled for sale to investors by various government agencies such as the Government
National Mortgage Association (GNMA) and government-related organizations such as the FNMA and the FHLMC, as well as by non-government
issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Although certain
mortgage-related securities are guaranteed by a third party or otherwise similarly secured, the market value of the security, which may
fluctuate, is not so secured. These securities differ from conventional bonds in that the principal is paid back to the investor as payments
are made on the underlying mortgages in the pool. Accordingly, a Fund receives monthly scheduled payments of principal and interest along
with any unscheduled principal prepayments on the underlying mortgages. Because these scheduled and unscheduled principal payments must
be reinvested at prevailing interest rates, mortgage-backed securities do not provide an effective means of locking in long-term interest
rates for the investor.
In
addition, there are a number of important differences among the agencies and instrumentalities of the U.S.
government that issue mortgage-related securities and among the securities they issue. Mortgage-related securities issued by GNMA include
GNMA Mortgage Pass-Through Certificates (also known as Ginnie Maes) which are guaranteed as to the timely payment of principal and interest.
That guarantee is backed by the full faith and credit of the U.S. Treasury. GNMA is a corporation wholly-owned by the U.S. government
within the Department of Housing and Urban Development. Mortgage-related
securities issued by FNMA include FNMA Guaranteed Mortgage Pass-Through Certificates (also known as Fannie Maes) and are guaranteed as
to payment of principal and interest by FNMA itself and backed by a line of credit with the U.S. Treasury. FNMA is a government-sponsored
entity (GSE) wholly-owned by public stockholders. Mortgage-related securities issued by FHLMC include FHLMC Mortgage Participation Certificates
(also known as Freddie Macs) and are guaranteed as to payment of principal and interest by FHLMC itself and backed by a line of credit
with the U.S. Treasury. FHLMC is a GSE wholly-owned by public stockholders.
Another
type of mortgage-related security issued by GSEs, such as FNMA and FHLMC, is credit risk transfer
securities. GSE credit risk transfer securities are unguaranteed and unsecured fixed or floating rate general obligations issued by GSEs,
which are typically issued at par and have stated final maturities. In addition, GSE credit risk transfer securities are structured so
that: (i) interest is paid directly by the issuing GSE; and (ii) principal is paid by the issuing GSE in accordance with the principal
payments and default performance of a pool of residential mortgage loans acquired by the GSE. The issuing GSE selects the pool of mortgage
loans based on that GSE’s eligibility criteria, and the performance of the credit risk transfer securities will be directly affected
by the selection of such underlying mortgage loans.
GSE
credit risk transfer securities are not directly linked to or backed by the underlying mortgage loans. Thus,
although the payment of principal and interest on such securities is tied to the performance of the pool of underlying mortgage loans,
in no circumstances will the actual cash flow from the underlying mortgage loans be paid or otherwise made available to the holders of
the securities and the holders of the securities will have no interest in the underlying mortgage loans. As a result, in the event that
a GSE fails to pay principal or interest on its credit risk transfer securities or goes through a bankruptcy, insolvency or similar proceeding,
holders of such credit risk transfer securities will have no direct recourse to the underlying mortgage loans. Such holders will receive
recovery on par with other unsecured note holders (agency debentures) in such a scenario.
GSE
credit risk transfer securities are issued in multiple tranches, which are allocated certain principal repayments
and credit losses corresponding to the seniority of the particular tranche. Each tranche will have credit exposure to the underlying mortgage
loans and the yield to maturity will be directly related to the amount and timing of certain defined credit events on the underlying mortgage
loans, any prepayments by borrowers and any removals of a mortgage loan from the pool. Because credit risk exposure is allocated in accordance
with the seniority of the particular tranche, principal losses will be first allocated to the most junior or subordinate tranches, thus
making the most subordinate tranches subject to increased sensitivity to dramatic housing downturns. In addition, many credit risk transfer
securities have collateral performance
26
triggers
(such as those based on credit enhancement, delinquencies or defaults) that could shut off principal payments
to subordinate tranches.
The
risks associated with an investment in GSE credit risk transfer securities will be different than the risks
associated with an investment in mortgage-backed securities issued by GSEs, because some or all of the mortgage default or credit risk
associated with the underlying mortgage loans in credit risk transfer securities is transferred to investors, such as the Fund. As a result,
investors in GSE credit risk transfer securities could lose some or all of their investment in these securities if the underlying mortgage
loans default.
The
Funds may also invest in credit risk transfer securities issued by private entities, such as banks or other
financial institutions. Credit risk transfer securities issued by private entities are structured similarly to those issued by GSEs, and
are generally subject to the same types of risks, including credit, prepayment, extension, interest rate and market risks.
On
September 7, 2008, FNMA and FHLMC were placed under the conservatorship of the Federal Housing
Finance Agency (FHFA) to provide stability in the financial markets, mortgage availability and taxpayer protection by preserving FNMA
and FHLMC’s assets and property and putting FNMA and FHLMC in a sound and solvent position. Under the conservatorship, the management
of FNMA and FHLMC was replaced.
Since
2009, both FNMA and FHLMC have received significant capital support through U.S. Treasury preferred
stock purchases and Federal Reserve purchases of the entities’ mortgage-backed securities.
In
February 2011, the Obama Administration produced a report to Congress outlining proposals to wind down
FNMA and FHLMC and reduce the government’s role in the mortgage market. In December 2011, Congress enacted the Temporary Payroll
Tax Cut Continuation Act of 2011 which, among other provisions, requires that FNMA and FHLMC increase their single-family guaranty fees
by at least 10 basis points and remit this increase to Treasury with respect to all loans acquired by FNMA or FHLMC on or after April
1, 2012 and before January 1, 2022. Discussions among policymakers continue, however, as to whether FNMA and FHLMC should be nationalized,
privatized, restructured, or eliminated altogether. FNMA reported in the third quarter of 2016 that it expected "continued significant
uncertainty" regarding its future and the housing finance system, including how long FNMA will continue to exist in its current form,
the extent of its role in the market, how long it will be in conservatorship, what form it will have and what ownership interest, if any,
current common and preferred stockholders will hold after the conservatorship is terminated, and whether FNMA will continue to exist following
conservatorship. FHLMC faces similar uncertainty about its future role. If FNMA and FHLMC are taken out of conservatorship, it is unclear
how the capital structure of FNMA and FHLMC would be constructed and what effects, if any, there may be on FNMA’s and FHLMC’s
creditworthiness and guarantees of certain mortgage-backed securities. It is also unclear whether the U.S. Treasury would continue to
enforce its rights or perform its obligations related to senior preferred stock. Should FNMA’s and FHLMC’s conservatorship
end, there could be an adverse impact on the value of their securities, which could cause Fund losses. FNMA and FHLMC also are the subject
of several continuing legal actions and investigations over certain accounting, disclosure or corporate governance matters, which (along
with any resulting financial restatements) may continue to have an adverse effect on the guaranteeing entities. Importantly, the future
of the entities is in question as the U.S. government considers multiple options regarding the future of FNMA and FHLMC.
Under
the direction of the FHFA, FNMA and FHLMC have entered into a joint initiative to develop a common
securitization platform for the issuance of a uniform mortgage-backed security (the “Single Security Initiative”) that aligns
the characteristics of FNMA and FHLMC certificates. The Single Security Initiative seeks to support the overall liquidity of the TBA market.
FNMA and FHLMC began issuing uniform mortgage-backed security in June 2019, and while the initial effects of the issuance of uniform mortgage-backed
securities on the market for mortgage-related securities have been relatively minimal, the long-term effects are still uncertain.
27
Asset-backed
securities are structured like mortgage-backed securities, but instead of mortgage loans or interests
in mortgage loans, the underlying assets may include such items as motor vehicle installment sales contracts or installment loan contracts,
leases of various types of real and personal property, and receivables from credit card agreements and from sales of personal property.
Regular payments received on asset-backed securities include both interest and principal. Asset-backed securities typically have
no U.S. Government backing. Additionally, the ability of an issuer of asset-backed securities to enforce its security interest in
the underlying assets may be limited.
If
a Fund purchases a mortgage-backed or other asset-backed security at a premium, the premium may be
lost if there is a decline in the market value of the security whether resulting from changes in interest rates or prepayments in the
underlying collateral. As with other interest-bearing securities, the prices of such securities are inversely affected by changes in interest
rates. Although the value of a mortgage-backed or other asset-backed security may decline when interest rates rise, the converse is not
necessarily true, since in periods of declining interest rates the mortgages and loans underlying the securities are prone to prepayment,
thereby shortening the average life of the security and shortening the period of time over which income at the higher rate is received.
When interest rates are rising, the rate of prepayment tends to decrease, thereby lengthening the period of time over which income at
the lower rate is received. For these and other reasons, a mortgage-backed or other asset-backed security’s average maturity may
be shortened or lengthened as a result of interest rate fluctuations and, therefore, it is not possible to predict accurately the security’s
return. In addition, while the trading market for short-term mortgages and asset-backed securities is ordinarily quite liquid, in times
of financial stress the trading market for these securities may become restricted.
CMBS
and RMBS generally offer a higher rate of interest than government and government-related mortgage-backed
securities because there are no direct or indirect government or government agency guarantees of payment. The risk of loss due to default
on CMBS and RMBS is historically higher because neither the U.S. government nor an agency or instrumentality have guaranteed them. CMBS
and RMBS whose underlying assets are neither U.S. government securities nor U.S. government insured mortgages, to the extent that real
properties securing such assets may be located in the same geographical region, may also be subject to a greater risk of default than
other comparable securities in the event of adverse economic, political or business developments that may affect such region and, ultimately,
the ability of property owners to make payments of principal and interest on the underlying mortgages. Non-government mortgage-backed
securities are generally subject to greater price volatility than those issued, guaranteed or sponsored by government entities because
of the greater risk of default in adverse market conditions. Where a guarantee is provided by a private guarantor, the Fund is subject
to the credit risk of such guarantor, especially when the guarantor doubles as the originator.
Collateralized
Mortgage Obligations (CMOs). A
CMO is a hybrid between a mortgage-backed bond and a mortgage pass-through security. A CMO is a type of mortgage-backed security that
creates separate classes with varying maturities and interest rates, called tranches. Similar to a bond, interest and prepaid principal
is paid, in most cases, semiannually. CMOs may be collateralized by whole mortgage loans, but are more typically collateralized by portfolios
of mortgage pass-through securities guaranteed by GNMA, FHLMC, or FNMA, and their income streams.
CMOs
are structured into multiple classes, each bearing a different fixed or floating interest rate and stated
maturity. Actual maturity and average life will depend upon the prepayment experience of the collateral. CMOs provide for a modified form
of call protection through a de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly
payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to investors holding the
shortest maturity class. Investors holding the longer maturity classes receive principal only after the first class has been retired.
An investor is partially guarded against a sooner than desired return of principal because of the sequential payments.
In
a typical CMO transaction, a corporation (issuer) issues multiple series (i.e., Series A, B, C and Z) of CMO
bonds (Bonds). Proceeds of the Bond offering are used to purchase mortgages or mortgage pass-through certificates (Collateral). The Collateral
is pledged to a third party trustee as security for the Bonds.
28
Principal
and interest payments from the Collateral are used to pay principal on the Bonds in the following order:
Series A, B, C and Z. The Series A, B, and C Bonds all bear current interest. Interest on a Series Z Bond is accrued and added to principal
and a like amount is paid as principal on the Series A, B, or C Bond is currently being paid off. Only after the Series A, B, and C Bonds
are paid in full does the Series Z Bond begin to receive payment. With some CMOs, the issuer serves as a conduit to allow loan originators
(primarily builders or savings and loan associations) to borrow against their loan portfolios.
CMOs
that are issued or guaranteed by the U.S. government or by any
of its agencies or instrumentalities will be considered U.S. government securities by the Funds, while other CMOs, even if collateralized
by U.S. government securities, will have the same status as other privately issued securities for purposes of applying the Funds' diversification
tests.
FHLMC
CMOs are debt obligations of FHLMC issued in multiple classes having different maturity dates which
are secured by the pledge of a pool of conventional mortgage loans purchased by FHLMC. Payments of principal and interest on the FHLMC
CMOs are made semiannually. The amount of principal payable on each semiannual payment date is determined in accordance with FHLMC’s
mandatory sinking fund schedule, which, in turn, is equal to approximately 100% of FHA prepayment experience applied to the mortgage collateral
pool. All sinking fund payments in the FHLMC CMOs are allocated to the retirement of the individual classes of bonds in the order of their
stated maturities. Payment of principal on the mortgage loans in the collateral pool in excess of the amount of FHLMC’s minimum
sinking fund obligation for any payment date are paid to the holders of the FHLMC CMOs as additional sinking fund payments. Because of
the “pass-through” nature of all principal payments received on the collateral pool in excess of FHLMC’s minimum
sinking fund requirement, the rate at which principal of the FHLMC CMOs is actually repaid is likely to be such that each class of bonds
will be retired in advance of its scheduled maturity date. If collection of principal (including prepayments) on the mortgage loans during
any semiannual payment period is not sufficient to meet the FHLMC CMO’s minimum sinking fund obligation on the next sinking fund
payment date, FHLMC agrees to make up the deficiency from its general funds.
Classes
of CMOs may also include interest only securities (IOs) and principal only securities (POs). IOs and
POs are stripped mortgage-backed securities representing interests in a pool of mortgages the cash flow from which has been separated
into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs
and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to
move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases
the rate at which the investment is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slow,
the life of the PO is lengthened and the yield to maturity is reduced.
CMOs
are generally subject to the same risks as mortgage-backed securities. In addition, CMOs may be subject
to credit risk because the issuer or credit enhancer has defaulted on its obligations and a Fund may not receive all or part of its principal.
Obligations issued by U.S. government-related entities are guaranteed as to the payment of principal and interest, but are not backed
by the full faith and credit of the U.S. government. The performance of private label mortgage-backed securities, issued by private institutions,
is based on the financial health of those institutions. Although GNMA guarantees timely payment of GNMA certificates even if homeowners
delay or default, tracking the “pass-through” payments may, at times, be difficult.
Real
Estate Mortgage Investment Conduits (REMICs). REMICs are pools
of mortgage loans in which the interest and principal payments from mortgages are structured into separately traded securities. REMICs
meet certain qualifications under the Internal Revenue Code that allow them to be exempt from taxation at the entity level, although the
income from a REMIC is taxable to investors. REMICs may invest only in “qualified mortgages” and “permitted investments.”
Qualified mortgages include single family or multifamily mortgages, commercial mortgages, second mortgages, second mortgages, mortgage
participations, and federal agency pass-through securities. Permitted investments include cash flow investments, qualified reserve assets,
and foreclosure property. If a REMIC loses its exempt tax status, it is permanently lost.
29
REMICs
issue pass-through certificates, multiclass bonds or other securities to investors. The different classes
of interests in a REMIC may have different maturities and different risks. REMIC interests are structured in classes of “regular
interests” and a single “residual interest” class. REMICs may have any number of classes of regular interests with
different servicing priorities and varying maturity dates. The different classes are assigned a coupon (fixed, floating, or zero interest
rate) and include other terms regarding payments to the investors.
REMICs
are subject to the market risks of mortgage related securities. In addition, the allowable activities for
REMICs are generally limited to holding a fixed pool of mortgages and distributing payments currently to investors and transactions that
are considered to be prohibited activities are subject to a penalty tax of 100%. REMICs have no minimum equity requirements and REMICs
may sell all of their assets without retaining any to meet collateralization requirements.
Collateralized
Debt Obligations (CDOs). A
CDO is a security backed by a pool of bonds, loans and other debt obligations. CDOs are not limited to investing in one type of debt and
accordingly, a CDO may own corporate bonds, commercial loans, asset-backed securities, residential mortgage-backed securities, commercial
mortgage-backed securities, and emerging market debt. The CDO’s securities are typically divided into several classes, or bond
tranches, that have differing levels of investment grade or credit tolerances. Most CDO issues are structured in a way that enables the
senior bond classes and mezzanine classes to receive investment-grade credit ratings. Credit risk is shifted to the most junior class
of securities. If any defaults occur in the assets backing a CDO, the senior bond classes are first in line to receive principal and interest
payments, followed by the mezzanine classes and finally by the lowest rated (or non-rated) class, which is known as the equity tranche.
Similar in structure to a collateralized mortgage obligation (described above) CDOs are unique in that they represent different types
of debt and credit risk.
Collateralized
Loan Obligations (CLOs). CLOs
are debt instruments backed solely by a pool of other debt securities.
The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the CLO in which a Fund invests.
Some CLOs have credit ratings, but are typically issued in various classes with various priorities. Normally, CLOs are privately offered
and sold (that is, they are not registered under the securities laws) and may be characterized by a Fund as illiquid investments; however,
an active dealer market may exist for CLOs that qualify for Rule 144A transactions. In addition to the normal interest rate, default and
other risks of fixed income securities, CLOs carry additional risks, including the possibility that distributions from collateral securities
will not be adequate to make interest or other payments, the quality of the collateral may decline in value or default a Fund may invest
in CLOs that are subordinate to other classes, values may be volatile, and disputes with the issuer may produce unexpected investment
results.
Credit
Linked Notes (CLNs). A CLN is a security structured and issued
by an issuer, which may be a bank, broker or special purpose vehicle. If a CLN is issued by a special purpose vehicle, the special purpose
vehicle will typically be collateralized by AAA-rated securities, but some CLNs are not collateralized. The performance and payment of
principal and interest is tied to that of a reference obligation which may be a particular security, basket of securities, credit default
swap, basket of credit default swaps, or index. The reference obligation may be denominated in foreign currencies. Risks of CLNs include
those risks associated with the underlying reference obligation including, but not limited to, market risk, interest rate risk, credit
risk, default risk and foreign currency risk. In the case of a CLN created with credit default swaps, the structure will be “funded”
such that the par amount of the security will represent the maximum loss that could be incurred on the investment and no leverage is introduced.
An investor in a CLN also bears counterparty risk or the risk that the issuer of the CLN will default or become bankrupt and not make
timely payments of principal and interest on the structured security. Should the issuer default or declare bankruptcy, the CLN holder
may not receive any compensation. In return for these risks, the CLN holder receives a higher yield. As with most derivative instruments,
valuation of a CLN may be difficult due to the complexity of the security.
Bank
Instruments. Bank
instruments are unsecured interest bearing bank deposits. Bank instruments include, but are not limited to, certificates of deposit, time
deposits, and banker’s acceptances from U.S. or foreign banks, as well as Eurodollar certificates of deposit (Eurodollar CDs) and
Eurodollar time deposits of
30
foreign
branches of domestic banks. Some certificates of deposit are negotiable interest-bearing instruments with
a specific maturity issued by banks and savings and loan institutions in exchange for the deposit of funds, and can typically be traded
in the secondary market prior to maturity. Other certificates of deposit, like time deposits, are non-negotiable receipts issued by a
bank in exchange for the deposit of funds which earns a specified rate of interest over a definite period of time; however, it cannot
be traded in the secondary market. A banker’s acceptance is a bill of exchange or time draft drawn on and accepted by a commercial
bank.
An
investment in Eurodollar CDs or Eurodollar time deposits may involve some of the same risks that are described
for Foreign Securities.
Commercial
Instruments. Commercial
instruments
include commercial paper, master notes and other short-term corporate
instruments that are denominated in U.S. dollars or foreign currencies.
Commercial
instruments are a type of instrument issued by large banks and corporations to raise money to
meet their short-term debt obligations, and are only backed by the issuing bank or corporation’s promise to pay the face amount
on the maturity date specified on the note. Commercial paper consists of short-term promissory notes issued by corporations. Commercial
paper may be traded in the secondary market after its issuance. Master notes are demand notes that permit the investment of fluctuating
amounts of money at varying rates of interest pursuant to arrangements with issuers who meet certain credit quality criteria. The interest
rate on a master note may fluctuate based on changes in specified interest rates or may be reset periodically according to a prescribed
formula or may be a set rate. Although there is no secondary market in master demand notes, if such notes have a demand feature, the payee
may demand payment of the principal amount of the note upon relatively short notice. Master notes are generally illiquid and therefore
typically subject to the Funds' percentage limitations for investments in illiquid investments. Commercial instruments may not be registered
with the SEC.
Certain
Funds may invest in commercial paper if it is rated within the top three rating categories of S&P Global
Ratings (S&P), Moody's Investors Service, Inc. (Moody's), or another nationally recognized statistical rating organization (NRSRO).
If the paper is not rated, it may be purchased if Invesco determines that it is comparable to rated commercial paper in the top three
categories of national rating organizations.
Synthetic
Municipal Instruments. Synthetic
municipal instruments are instruments, the value of and return on which are derived from underlying securities. Synthetic municipal instruments
in which the Funds may invest include tender option bonds, and fixed or variable rate trust certificates. These types of instruments involve
the deposit into a trust or custodial account of one or more long-term tax-exempt bonds or notes (Underlying Bonds), and the sale of certificates
evidencing interests in the trust or custodial account to investors such as the Funds. The trustee or custodian receives the long-term
fixed rate interest payments on the Underlying Bonds, and pays certificate holders fixed rates or short-term floating or variable interest
rates which are reset periodically. A “tender option bond” provides a certificate holder with the conditional right to sell
its certificate to the sponsor or some designated third party at specified intervals and receive the par value of the certificate plus
accrued interest (a demand feature). A "fixed rate trust certificate" evidences an interest in a trust entitling a certificate holder
to fixed future interest and/or principal payments on the Underlying Bonds. A “variable rate trust certificate” evidences
an interest in a trust entitling the certificate holder to receive variable rate interest based on prevailing short-term interest rates
and also typically provides the certificate holder with the conditional demand feature (the right to tender its certificate at par value
plus accrued interest under certain conditions).
All
synthetic municipal instruments must meet the minimum quality standards for the Funds' investments and
must present minimal credit risks. In selecting synthetic municipal instruments for the Funds, Invesco considers the creditworthiness
of the issuer of the Underlying Bond, the sponsor and the party providing certificate holders with a conditional right to sell their certificates
at stated times and prices (a demand feature).
Typically,
a certificate holder cannot exercise the demand feature until the occurrence of certain conditions,
such as where the issuer of the Underlying Bond defaults on interest payments. Moreover,
31
because
synthetic municipal instruments involve a trust or custodial account and a third party conditional demand
feature, they involve complexities and potential risks that may not be present where a municipal security is owned directly.
The
tax-exempt character of the interest paid to certificate holders is based on the assumption that the holders
have an ownership interest in the Underlying Bonds; however, the IRS has not issued a ruling addressing this issue. In the event the IRS
issues an adverse ruling or successfully litigates this issue, it is possible that the interest paid to the Funds on certain synthetic
municipal instruments would be deemed to be taxable. The Funds rely on opinions of special tax counsel on this ownership question and
opinions of bond counsel regarding the tax-exempt character of interest paid on the Underlying Bonds.
Municipal
Securities. Municipal Securities are typically debt obligations
of states, territories or possessions of the United States and the District of Columbia and their political subdivisions, agencies and
instrumentalities, the interest on which, in the opinion of bond counsel or other counsel to the issuers of such securities, is, at the
time of issuance, exempt from federal income tax. The issuers of municipal securities obtain funds for various public purposes, including
the construction of a wide range of public facilities such as airports, highways, bridges, schools, hospitals, housing, mass transportation,
streets and water and sewer works. Other public purposes for which municipal securities may be issued include refunding outstanding obligations,
obtaining funds for general operating expenses and obtaining funds to lend to other public institutions and facilities.
Certain
types of municipal securities are issued to obtain funding for privately operated facilities. The credit
and quality of private activity debt securities are dependent on the private facility or user, who is responsible for the interest payment
and principal repayment.
The
two major classifications of Municipal Securities are bonds and notes. Municipal bonds are municipal debt
obligations in which the issuer is obligated to repay the original (or “principal”) payment amount on a certain maturity
date along with interest. A municipal bond’s maturity date (the date when the issuer of the bond repays the principal) may be years
in the future. Short-term bonds mature in one to three years, while long-term bonds usually do not mature for more than a decade. Notes
are short-term instruments which usually mature in less than two years. Most notes are general obligations of the issuing municipalities
or agencies and are sold in anticipation of a bond sale, collection of taxes or receipt of other revenues. Municipal notes also include
tax, revenue notes and revenue and bond anticipation notes (discussed more fully below) of short maturity, generally less than three years,
which are issued to obtain temporary funds for various public purposes.
Municipal
debt securities may also be classified as general obligation or revenue obligations (or "special delegation
securities"). General obligation securities are secured by the issuer's pledge of its faith, credit and taxing power for the payment of
principal and interest.
Revenue
debt obligations, such as revenue bonds and revenue notes, are usually payable only from the revenues
derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific
revenue source but not from the general taxing power. The principal and interest payments for industrial development bonds or pollution
control bonds are often the sole responsibility of the industrial user and therefore may not be backed by the taxing power of the issuing
municipality. The interest paid on such bonds may be exempt from federal income tax, although current federal tax laws place substantial
limitations on the purposes and size of such issues. Such obligations are considered to be Municipal Securities provided that the interest
paid thereon, in the opinion of bond counsel, qualifies as exempt from federal income tax. However, interest on municipal securities may
give rise to a federal alternative minimum tax (AMT) liability for noncorporate taxpayers and may have other collateral federal income
tax consequences. There is a risk that some or all of the interest received by the Fund from tax-exempt municipal securities might become
taxable as a result of tax law changes or determinations of the IRS.
Another
type of revenue obligations is pre-refunded bonds, which are typically issued to refinance debt. In other
words, pre-refunded bonds result from the advance refunding of bonds that are not currently
32
redeemable.
The proceeds from the issue of the lower yield and/or longer maturing pre-refunding bond will usually
be used to purchase U.S. government obligations, such as U.S. Treasury securities, which are held in an escrow account and used to pay
interest and principal payments until the scheduled call date of the original bond issue occurs. Like other fixed income securities, pre-refunded
bonds are subject to interest rate, market, credit, and reinvestment risks. However, because pre-refunded bonds are generally collateralized
with U.S. government obligations, such pre-refunded bonds have essentially the same risks of default as a AAA-rated security. The Fund
will treat such pre-refunded securities as investment-grade securities, notwithstanding the fact that the issuer of such securities may
have a lower rating (such as a below-investment-grade rating) from one or more rating agencies.
Within
these principal classifications of municipal securities, there are a variety of types of municipal securities,
including but not limited to, fixed and variable rate securities, variable rate demand notes, municipal leases, custodial receipts, participation
certificates, inverse floating rate securities, and derivative municipal securities.
After
purchase by a Fund, an issue of Municipal Securities may cease to be rated by Moody's Investors Service,
Inc. (Moody's) or S&P Global Ratings Services (S&P), or another nationally recognized statistical rating organization (NRSRO),
or the rating of such a security may be reduced below the minimum credit quality rating required for purchase by the Fund. Neither event
would require a Fund to dispose of the security. To the extent that the ratings applied by Moody’s, S&P or another NRSRO to
Municipal Securities may change as a result of changes in these rating systems, a Fund will attempt to use comparable credit quality ratings
as standards for its investments in Municipal Securities.
The
yields on Municipal Securities are dependent on a variety of factors, including general economic and monetary
conditions, money market factors, conditions of the Municipal Securities market, size of a particular offering, and maturity and rating
of the obligation. Because many Municipal Securities are issued to finance similar projects, especially those related to education, health
care, transportation and various utilities, conditions in those sectors and the financial condition of an individual municipal issuer
can affect the overall municipal market. The market values of the Municipal Securities held by a Fund will be affected by changes in the
yields available on similar securities. If yields increase following the purchase of a Municipal Security, the market value of such Municipal
Security will generally decrease. Conversely, if yields decrease, the market value of a Municipal Security will generally increase. The
ratings of S&P and Moody’s represent their opinions of the quality of the municipal securities they undertake to rate. It should
be emphasized, however, that ratings are general and are not absolute standards of quality. Consequently, municipal securities with the
same maturity, coupon and rating may have different yields while municipal securities of the same maturity and coupon with different ratings
may have the same yield.
Certain
of the municipal securities in which the Funds may invest represent relatively recent innovations in
the municipal securities markets and the markets for such securities may be less developed than the market for conventional fixed rate
municipal securities.
Under
normal market conditions, longer-term municipal securities generally provide a higher yield than shorter-term
municipal securities. The Funds have no limitation as to the maturity of municipal securities in which they may invest. The Adviser may
adjust the average maturity of a Fund’s portfolio from time to time depending on its assessment of the relative yields available
on securities of different maturities and its expectations of future changes in interest rates.
The
net asset value of a Fund will change with changes in the value of its portfolio securities. With fixed income
municipal securities, the net asset value of a Fund can be expected to change as general levels of interest rates fluctuate. When interest
rates decline, the value of a portfolio invested in fixed income securities generally can be expected to rise. Conversely, when interest
rates rise, the value of a portfolio invested in fixed income securities generally can be expected to decline. The prices of longer term
municipal securities generally are more volatile with respect to changes in interest rates than the prices of shorter term municipal securities.
Volatility may be greater during periods of general economic uncertainty.
33
Municipal
Securities, like other debt obligations, are subject to the credit risk of nonpayment. The ability of issuers
of municipal securities to make timely payments of interest and principal may be adversely impacted in general economic downturns and
as relative governmental cost burdens are allocated and reallocated among federal, state and local governmental units. Such nonpayment
would result in a reduction of income to a Fund, and could result in a reduction in the value of the municipal securities experiencing
nonpayment and a potential decrease in the net asset value of the Fund. In addition, a Fund may incur expenses to work out or restructure
a distressed or defaulted security.
The
Funds may invest in Municipal Securities with credit enhancements such as letters of credit and municipal
bond insurance. The Funds may invest in Municipal Securities that are insured by financial insurance companies. Since a limited number
of entities provide such insurance, a Fund may invest more than 25% of its assets in securities insured by the same insurance company.
If a Fund invests in Municipal Securities backed by insurance companies and other financial institutions, changes in the financial condition
of these institutions could cause losses to the Fund and affect share price. Letters of credit are issued by a third party, usually a
bank, to enhance liquidity and ensure repayment of principal and any accrued interest if the underlying Municipal Bond should default.
These credit enhancements do not guarantee payments or repayments on the Municipal Securities and a downgrade in the credit enhancer could
affect the value of the Municipal Security.
If
the IRS determines that an issuer of a Municipal Security has not complied with applicable tax requirements,
interest from the security could be treated as taxable, which could result in a decline in the security’s value. In addition, there
could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on Municipal
Securities or otherwise adversely affect the current federal or state tax status of Municipal Securities. For example, 2017 legislation
commonly known as the Tax Cuts and Jobs Act repeals the exclusion from gross income for interest on pre-refunded municipal securities
effective for such bonds issued after December 31, 2017.
Taxable
municipal securities are debt securities issued by or on behalf of states and their political subdivisions,
the District of Columbia, and possessions of the United States, the interest on which is not exempt from federal income tax. Taxable investments
include, for example, hedging instruments, repurchase agreements, and many of the types of securities the Fund would buy for temporary
defensive purposes.
At
times, in connection with the restructuring of a municipal bond issuer either outside of bankruptcy court in
a negotiated workout or in the context of bankruptcy proceedings, the Fund may determine or be required to accept equity or taxable debt
securities, or the underlying collateral (which may include real estate or loans) from the issuer in exchange for all or a portion of
the Fund’s holdings in the municipal security. Although the Adviser will attempt to sell those assets as soon as reasonably practicable
in most cases, depending upon, among other things, the Adviser’s valuation of the potential value of such assets in relation to
the price that could be obtained by the Fund at any given time upon sale thereof, the Fund may determine to hold such securities or assets
in its portfolio for limited period of time in order to liquidate the assets in a manner that maximizes their value to the Fund.
Municipal
Securities also include the following securities:
•
Bond
Anticipation Notes usually are general obligations of state and local governmental issuers which are sold to obtain interim financing
for projects that will eventually be funded through the sale of long-term debt obligations or bonds.
•
Revenue
Anticipation Debt Securities, including bonds, notes, and certificates, are issued by governments or governmental bodies with the expectation
that future revenues from a designated source will be used to repay the securities. In general, they also constitute general obligations
of the issuer.
•
Tax
Anticipation Notes are issued by state and local governments to finance the current operations of such governments. Repayment is generally
to be derived from specific future tax revenues.
34
•
Tax-Exempt
Commercial Paper (Municipal Paper) is similar to taxable commercial paper, except that tax-exempt commercial paper is issued by states,
municipalities and their agencies.
•
Tax-Exempt
Mandatory Paydown Securities (TEMPS) are fixed rate term bonds carrying a short-term maturity, usually three to four years beyond the
expected redemption. TEMPS are structured as bullet repayments, with required optional redemptions as entrance fees are collected.
•
Zero
Coupon and Pay-in-Kind Securities do not immediately produce cash income. These securities are issued at an original issue discount, with
the full value, including accrued interest, paid at maturity. Interest income may be reportable annually, even though no annual payments
are made. Market prices of zero coupon bonds tend to be more volatile than bonds that pay interest regularly. Pay-in-kind securities are
securities that have interest payable by delivery of additional securities. Upon maturity, the holder is entitled to receive the aggregate
par value of the securities. Zero coupon and pay-in-kind securities may be subject to greater fluctuation in value and less liquidity
in the event of adverse market conditions than comparably rated securities paying cash interest at regular interest payment periods. Prices
on non-cash-paying instruments may be more sensitive to changes in the issuer’s financial condition, fluctuation in interest rates
and market demand/supply imbalances than cash-paying securities with similar credit ratings, and thus may be more speculative. Special
tax considerations are associated with investing in certain lower-grade securities, such as zero coupon or pay-in-kind securities.
•
Capital
Appreciation Bonds are municipal securities in which the investment return on the initial principal payment is reinvested at a compounded
rate until the bond matures. The principal and interest are due on maturity. Thus, like zero coupon securities, investors must wait until
maturity to receive interest and principal, which increases the interest rate and credit risks.
•
Payments
in lieu of taxes (also known as PILOTs) are voluntary payments by, for instance the U.S. government or nonprofits, to local governments
that help offset losses in or otherwise serve as a substitute for property taxes.
•
Converted
Auction Rate Securities (CARS) are a structure that combines the debt service deferral feature of Capital Appreciation Bonds (CABS) with
Auction Rate Securities. The CARS pay no debt service until a specific date, then they incrementally convert to conventional Auction Rate
Securities. At each conversion date the issuer has the ability to call and pay down any amount of the CARS.
Some
bonds may be “callable,” allowing the issuer to redeem them before their maturity date. To protect
bondholders, callable bonds may be issued with provisions that prevent them from being called for a period of time. Typically, that is
5 to 10 years from the issuance date. When interest rates decline, if the call protection on a bond has expired, it is more likely that
the issuer may call the bond. If that occurs, the Fund might have to reinvest the proceeds of the called bond in investments that pay
a lower rate of return, which could reduce the Fund’s yield.
Municipal
Lease Obligations. Municipal lease obligations are issued by state
and local governments or authorities to finance the acquisition of land, equipment and facilities, such as state and municipal vehicles,
telecommunications and computer equipment, and other capital assets. Municipal lease obligations, which are a type of Municipal Security,
may take the form of a lease, an installment purchase contract or a conditional sales contract. Interest payments on qualifying municipal
lease obligations are generally exempt from federal income taxes.
Municipal
lease obligations are generally subject to greater risks than general obligation or revenue bonds.
State laws set forth requirements that states or municipalities must meet in order to issue municipal obligations, and such obligations
may contain a covenant by the issuer to budget for, appropriate, and make payments due under the obligation. However, certain municipal
lease obligations may contain "non-appropriation" clauses which provide that the issuer is not obligated to make payments on the obligation
in future years unless funds have been appropriated for this purpose each year. If not enough money is appropriated to make the lease
payments, the leased property may be repossessed as security for holders of the municipal lease obligation. In such an event, there is
no assurance that the property's private sector or
35
re-leasing
value will be enough to make all outstanding payments on the municipal lease obligation or that the payments
will continue to be tax-free. Additionally, it may be difficult to dispose of the underlying capital asset in the event of non-appropriation
or other default. Direct investments by the Fund in municipal lease obligations may be deemed illiquid and therefore subject to the Funds'
percentage limitations for illiquid investments and the risks of holding illiquid investments.
Investment
Grade Debt Obligations. Certain Funds may invest in U.S. dollar-denominated
debt obligations issued or guaranteed by U.S. corporations and U.S. commercial banks, U.S. dollar-denominated obligations of foreign issuers
or debt obligations of foreign issuers denominated in foreign currencies. Debt obligations include, among others, bonds, notes, debentures
and variable rate demand notes.
The
Adviser considers investment grade securities to include: (i) securities rated BBB- or higher by S&P or
Baa3 or higher by Moody’s or an equivalent rating by another NRSRO, (ii) short-term securities with comparable NRSRO ratings, or
(iii) unrated securities determined by the Adviser to be of comparable quality, each at the time of purchase. The descriptions of debt
securities ratings are found in Appendix A.
In
choosing corporate debt securities on behalf of a Fund, portfolio managers may consider:
i.
general
economic and financial conditions;
ii.
the
specific issuer’s (a) business and management, (b) cash flow, (c) earnings coverage of interest and dividends, (d) ability to operate
under adverse economic conditions, (e) fair market value of assets, and (f) in the case of foreign issuers, unique political, economic
or social conditions applicable to such issuer’s country; and,
iii.
other
considerations deemed appropriate.
Debt
securities are subject to a variety of risks, such as interest rate risk, income risk, prepayment risk, inflation
risk, credit risk, currency risk and default risk.
Non-Investment
Grade Debt Obligations (Junk Bonds). Bonds
rated below or determined to be below investment grade (as defined above in “Investment Grade Debt Obligations”) are commonly
referred to as “junk bonds.” Analysis of the creditworthiness of junk bond issuers is more complex than that of investment-grade
issuers and the success of a Fund’s adviser in managing these decisions is more dependent upon its own credit analysis than is
the case with investment-grade bonds. Descriptions of debt securities ratings are found in Appendix A.
The
capacity of junk bonds to pay interest and repay principal is considered speculative. While junk bonds may
provide an opportunity for greater income and gains, they are subject to greater risks than higher-rated debt securities. The prices of
and yields on junk bonds may fluctuate to a greater extent than those of higher-rated debt securities. Junk bonds are generally more sensitive
to individual issuer developments, economic conditions and regulatory changes than higher-rated bonds. Issuers of junk bonds are often
smaller, less-seasoned companies or companies that are highly leveraged with more traditional methods of financing unavailable to them.
Junk bonds are generally at a higher risk of default because such issues are often unsecured or otherwise subordinated to claims of the
issuer’s other creditors. If a junk bond issuer defaults, a Fund may incur additional expenses to seek recovery. The secondary
markets in which junk bonds are traded may be thin and less liquid than the market for higher-rated debt securities and a Fund may have
difficulty selling certain junk bonds at the desired time and price. Less liquidity in secondary trading markets could adversely affect
the price at which a Fund could sell a particular junk bond, and could cause large fluctuations in the net asset value of that Fund’s
shares. The lack of a liquid secondary market may also make it more difficult for a Fund to obtain accurate market quotations in valuing
junk bond assets and elements of judgment may play a greater role in the valuation.
Floating
Rate Corporate Loans and Corporate Debt Securities.
Floating rate loans consist generally of obligations of companies
and other entities (collectively, borrowers) incurred for the purpose of reorganizing the assets and liabilities of a borrower; acquiring
another company; taking over control of a company (leveraged buyout); temporary refinancing; or financing internal growth or other general
business purposes.
36
Floating
rate loans are often obligations of borrowers who have incurred a significant percentage of debt compared
to equity issued and thus are highly leveraged.
Floating
rate loans may include both term loans, which are generally fully funded at the time of a Fund’s investment,
and revolving loans, which may require a Fund to make additional investments in the loans as required under the terms of the loan agreement.
A revolving credit loan agreement may require a Fund to increase its investment in a loan at a time when a Fund might not otherwise have
done so, even if the borrower’s condition makes it unlikely that the loan will be repaid.
A
floating rate loan is generally offered as part of a lending syndicate to banks and other financial institutions
and is administered in accordance with the terms of the loan agreement by an agent bank who is responsible for collection of principal
and interest and fee payments from the borrower and apportioning those payments to all lenders who are parties to the agreement. Typically,
the agent is given broad discretion to enforce the loan agreement and is compensated by the borrower for its services.
Floating
rate loans may be acquired by direct investment as a lender at the inception of the loan or by assignment
of a portion of a floating rate loan previously made to a different lender or by purchase of a participation interest. If a Fund makes
a direct investment in a loan as one of the lenders, it generally acquires the loan at par. This means a Fund receives a return at the
full interest rate for the loan. If a Fund acquires its interest in loans in the secondary market or acquires a participation interest,
the loans may be purchased or sold above, at, or below par, which can result in a yield that is below, equal to, or above the stated interest
rate of the loan. At times, a Fund may be able to invest in floating rate loans only through assignments or participations.
A
participation interest represents a fractional interest in a floating rate loan held by the lender selling a Fund
the participation interest. In the case of participations, a Fund will not have any direct contractual relationship with the borrower,
a Fund’s rights to consent to modifications of the loan are limited and it is dependent upon the participating lender to enforce
each Fund’s rights upon a default.
The
Fund may be subject to the credit of both the agent and the lender from whom the Fund acquires a participation
interest. These credit risks may include delay in receiving payments of principal and interest paid by the borrower to the agent or, in
the case of a participation, offsets by the lender's regulator against payments received from the borrower. In the event of the borrower's
bankruptcy, the borrower's obligation to repay the floating rate loan may be subject to defenses that the borrower can assert as a result
of improper conduct by the agent.
Historically,
floating rate loans have not been registered with the SEC or any state securities commission or
listed on any securities exchange. As a result, the amount of public information available about a specific floating rate loan has been
historically less extensive than if the floating rate loan were registered or exchange traded.
Although
loan investments are generally subject to certain restrictive covenants in favor of the investor, certain
of the loans in which a Fund may invest may be issued or offered as “covenant lite” loans, which have few or no financial
maintenance covenants. “Financial maintenance covenants” are those that require a borrower to maintain certain financial
metrics during the life of the loan, such as maintaining certain levels of cash flow or limiting leverage. These covenants are included
to permit the lender to monitor the borrower's performance and declare an event of default if breached, allowing the lender to renegotiate
the terms of the loan or take other actions intended to help mitigate losses. Accordingly, a Fund may experience relatively greater
difficulty or delays in enforcing its rights on its holdings of covenant lite loans than its holdings of loans or securities with financial
maintenance covenants, which may result in losses to the Fund, especially during a downturn in the credit cycle. Although covenant lite
loans contain few or no financial maintenance covenants, information necessary to monitor a borrower’s financial performance may
be available without covenants to lenders and the public alike, and can be used to detect such early warning signs as deterioration of
a borrower’s financial condition or results. When such information is available, the Adviser will seek to take appropriate action
without the help of covenants in the loans.
37
Floating
rate debt securities are typically in the form of notes or bonds issued in public or private placements
in the securities markets. Floating rate debt securities will typically have substantially similar terms to floating rate loans, but will
not be in the form of participations or assignments.
The
floating rate loans and debt securities in which a Fund invests will, in most instances, be secured and senior
to other indebtedness of the borrower. Each floating rate loan and debt security will generally be secured by collateral such as accounts
receivable, inventory, equipment, real estate, intangible assets such as trademarks, copyrights and patents, and securities of subsidiaries
or affiliates. The value of the collateral generally will be determined by reference to financial statements of the borrower, by an independent
appraisal, by obtaining the market value of such collateral, in the case of cash or securities if readily ascertainable, or by other customary
valuation techniques considered appropriate by Invesco and/or the Sub-Advisers. The value of collateral may decline after a Fund’s
investment, and collateral may be difficult to sell in the event of default. Consequently, the Fund may not receive all the payments to
which it is entitled. The Fund’s assets may be invested in unsecured floating rate loans and debt securities or subordinated floating
rate loans and debt securities, which may or may not be secured. If the borrower defaults on an unsecured loan or security, there is no
specific collateral on which the lender can foreclose. If the borrower defaults on a subordinated loan or security, the collateral may
not be sufficient to cover both the senior and subordinated loans and securities.
Most
borrowers pay their debts from cash flow generated by their businesses. If a borrower’s cash flow is insufficient
to pay its debts, it may attempt to restructure its debts rather than sell collateral. Borrowers may try to restructure their debts by
filing for protection under the federal bankruptcy laws or negotiating a work-out. If a borrower becomes involved in a bankruptcy proceeding,
access to collateral may be limited by bankruptcy and other laws. If a court decides that access to collateral is limited or voidable,
a Fund may not recover the full amount of principal and interest that is due.
A
borrower must comply with certain restrictive covenants contained in the loan agreement or indenture (in
the case of floating rate debt securities). In addition to requiring the scheduled payment of principal and interest, these covenants
may include restrictions on the payment of dividends and other distributions to the borrower’s shareholders, provisions requiring
compliance with specific financial ratios, and limits on total indebtedness. The agreement may also require the prepayment of the floating
rate loans or debt securities from excess cash flow. A breach of a covenant that is not waived by the agent (or lenders directly) is normally
an event of default, which provides the agent and lenders the right to call for repayment of the outstanding floating rate loan or debt
security.
Purchasers
of floating rate loans may receive and/or pay certain fees. These fees are in addition to interest
payments and may include commitment fees, facility fees, and prepayment penalty fees. When a Fund buys a floating rate loan, it may receive
a facility fee, and when it sells a floating rate loan, it may pay an assignment fee.
It
is expected that the majority of floating rate loans and debt securities will have stated maturities of three to
ten years. However, because floating rate loans and debt securities are frequently prepaid, it is expected that the average maturity will
be three to five years. The degree to which borrowers prepay floating rate loans and debt securities, whether as a contractual requirement
or at the borrower’s election, may be affected by general business conditions, the borrower’s financial condition and competitive
conditions among lenders. Prepayments cannot be predicted with accuracy. Prepayments may result in a Fund’s investing in floating
rate loans and debt securities with lower yields.
Investments
in loans, loan participations and assignments present the possibility that a Fund could be held
liable as a co-lender under emerging legal theories of lender liability. Each Fund anticipates that loans, loan participations and assignments
could be sold only to a limited number of institutional investors. If there is no active secondary market for a loan, it may be more difficult
to sell the interests in such a loan at a price that is acceptable or to even obtain pricing information. In addition, some loans, loan
participations and assignments may not be rated by major rating agencies. Loans held by the Funds might not be considered securities
for the purposes of the Securities Act of 1933, as amended (the 1933 Act) or the Securities
38
Exchange
Act of 1934, as amended (the Exchange Act), and therefore a risk exists that purchasers, such as the
Funds may not be entitled to rely on the anti-fraud provisions of those Acts.
Loans,
Loan Participations and Assignments. Loans and loan participations
are interests in amounts owed by a corporate, governmental or other borrowers to another party. They may represent amounts owed to lenders
or lending syndicates, to suppliers of goods or services, or to other parties. The Fund will have the right to receive payments of principal,
interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by the lender of the
payments from the borrower. In connection with purchasing participations, a Fund generally will have no right to enforce compliance by
the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and a Fund may
not directly benefit from any collateral supporting the loan in which it has purchased the participation. In addition, the Fund's rights
to consent to modifications of the loan are limited and it is dependent upon the participating lender to enforce the Fund's rights upon
a default. As a result, the Fund will be subject to the credit risk of the borrower, the lender, and the agent who is responsible for
collection of principal and interest and fee payments from the borrower and apportioning those payments to all lenders who are parties
to the loan agreement. In the event of the insolvency of the lender selling a participation, the Fund may be treated as a general creditor
of the lender and may not benefit from any set-off between the lender and the borrower. Credit risks relating to the agent may include
delay in receiving payments of principal and interest paid by the borrower to the agent. In the event of the borrower's bankruptcy, the
borrower's obligation to repay the loan may be subject to defenses that the borrower can assert as a result of improper conduct by the
agent.
When
a Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan.
However, because assignments are arranged through private negotiations between potential assignees and potential assignors, the rights
and obligations acquired by a Fund as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning
lender. In addition, if the loan is foreclosed, a Fund could be part owner of any collateral and could bear the costs and liabilities
of owning and disposing of the collateral.
Investments
in loans, loan participations and assignments present the possibility that a Fund could be held
liable as a co-lender under emerging legal theories of lender liability. The Fund anticipates that loans, loan participations and assignments
could be sold only to a limited number of institutional investors. If there is no active secondary market for a loan, it may be more difficult
to sell the interests in such a loan at a price that is acceptable or to even obtain pricing information. In addition, some loans, loan
participations and assignments may not be rated by major rating agencies. Loans held by a Fund might not be considered securities for
purposes of the Securities Act of 1933, as amended (the 1933 Act), or the Securities Exchange Act of 1934, as amended (the Exchange Act),
and therefore a risk exists that purchasers, such as the Fund, may not be entitled to rely on the anti-fraud provisions of those Acts.
The
secondary market for certain floating rate loans may be subject to irregular trading activity, wide bid/ask
spreads and extended trade settlement periods (in some cases, longer than seven days).
Public
Bank Loans. Public bank loans are privately negotiated loans for
which information about the issuer has been made publicly available. Public loans are made by banks or other financial institutions, and
may be rated investment grade (as defined above in “Investment Grade Debt Obligations”) or below investment grade. However,
public bank loans are not registered under the 1933 Act and are not publicly traded. They usually are second lien loans normally lower
in priority of payment to senior loans, but have seniority in a company’s capital structure to other claims, such as subordinated
corporate bonds or publicly-issued equity so that in the event of bankruptcy or liquidation, the company is required to pay down these
second lien loans prior to such other lower-ranked claims on their assets. Bank loans normally pay floating rates that reset frequently,
and as a result, protect investors from increases in interest rates.
Bank
loans generally are negotiated between a borrower and several financial institutional lenders represented
by one or more lenders acting as agent of all the lenders. The agent is responsible for negotiating the loan agreement that establishes
the terms and conditions of the loan and the rights of the borrower and the lenders, monitoring any collateral, and collecting principal
and interest on the loan. By investing in a loan, a Fund becomes a member of a syndicate of lenders. Certain bank loans are illiquid,
meaning the Fund may
39
not
be able to sell them quickly at a fair price. Illiquid investments are also difficult to value. To the extent a bank
loan has been deemed illiquid, it will be subject to a Fund’s restrictions on illiquid investments. The secondary market for bank
loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods.
Bank
loans are subject to the risk of default. Default in the payment of interest or principal on a loan will result
in a reduction of income to a Fund, a reduction in the value of the loan, and a potential decrease in the Fund’s net asset value.
The risk of default will increase in the event of an economic downturn or a substantial increase in interest rates. Bank loans are subject
to the risk that the cash flow of the borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled payments.
As discussed above, however, because bank loans reside higher in the capital structure than high yield bonds, default losses have been
historically lower in the bank loan market. Bank loans that are rated below investment grade share the same risks of other below investment
grade securities.
Senior
Loans and Other Loans. Among other debt securities described elsewhere
in this SAI, the Fund may invest in loans, and in particular, in floating rate loans (sometimes referred to as “adjustable”
rate loans that hold (or in the judgment of the Adviser, hold) a senior position in the capital structure of U.S. and foreign corporations,
parternerships or other business entities that, under normal circumstances, allow them to have priority of claim ahead of (or at least
as high as) other obligations of a borrower in the event liquidation. These investments are referred to as “Senior Loans”
in this SAI. Loans typically are arranged through private negotiations between a borrower and one or more financial institutions (Lenders).
Usually the Lenders are represented by an agent (Agent), which usually is one of the Lenders. The borrowers may use the proceeds of loans
to finance leveraged buyouts, recapitalizations, mergers, acquisitions, stock repurchases, debt refinancings, or for other purposes.
Senior
loans typically have higher recoveries than other debt obligations that rank lower in the priority of payments
for a particular debtor, because in most instances they take preference over those subordinated debt obligations, with respect to payment
of interest and principal, and over stock. However, the Fund is still subject to the risk that the borrower under a loan will default
on scheduled interest or principal payments and that the assets of the borrower to which the Fund has recourse will be insufficient to
satisfy in full the payment obligations that the borrower has to the Fund. The risk of default will increase in the event of an economic
downturn or, in the case of a floating rate loan, a substantial increase in interest rates (because the cost of the borrower’s
debt service will increase as the interest rate on its loan is upwardly adjusted). The Fund may own a debt obligation of a borrower that
becomes, or is about to become, insolvent. The Fund can also purchase debt obligations that are extended to a bankrupt entity (so called
debtor-in-possession or ‘DIP’ financing) or debt obligations that are issued in connection with a restructuring of the borrower
under bankruptcy laws.
Agents
typically are commercial or investment banks that originate loans and invite other parties to join the
lending syndicate. In larger transactions, it is common to have several Agents. However, only one Agent usually has primary responsibility
for documentation and administration of the loan. Agents are normally paid fees by the borrower for their services. While a Fund can serve
as the Agent or co-agent for a loan, a Fund currently does not intend to act as an Agent or co-Agent. Agents, acting on behalf of the
Lenders, generally are primarily responsible for negotiating the loan agreement, which establishes the terms and conditions of the loan
and the rights of the borrower and the Lenders. A Fund will rely on Agents to collect payments of principal and interest on a loan. A
Fund also will rely in part on Agents to monitor compliance by the borrower with the restrictive covenants in the loan agreement and to
notify a Fund (or the Lender from whom a Fund has purchased a participation) of any adverse change in the borrower’s financial
condition.
Loans
may be secured or unsecured. Where a loan is secured, Agents usually monitor the adequacy of assets
that collateralize loans. In reliance upon the opinions of their legal counsel, Agents generally are also responsible for determining
that the Lenders have obtained a perfected security interest in the collateral securing loans, if any.
Financial
difficulties of Agents can pose a risk to a Fund. If an Agent for a particular loan becomes insolvent,
a Fund could incur losses in connection with its investment in that loan. An Agent could declare bankruptcy, and a regulatory authority
could appoint a receiver or conservator. Should this occur, the assets
40
that
the Agent holds under the loan agreement, if any, should continue to be available to the Lenders, including
a Fund. A regulator or a court, however, might determine that any such assets are subject to the claims of the Agent’s general
or secured creditors. If that occurs, a Fund might incur costs and delays in realizing final payment on a loan, or a Fund might suffer
a loss of principal or interest. A Fund may be subject to similar risks when it buys a participation interest in a loan. Most participations
purchased by a Fund are structured to be “true sales” of the underlying loan, in which case the loan should not be included
in the bankruptcy estate of the participation seller. However, a court might determine that the participation was not in fact a “true
sale”, in which case a Fund would be a general unsecured creditor of the participation seller.
In
certain circumstances, loans may not be deemed to be securities, and in the event of fraud or misrepresentation
by a borrower or an arranger, lenders will not have the protection of the anti-fraud provisions of the federal securities laws, as would
be the case for bonds or stocks. Instead, in such cases, lenders generally rely on the contractual provisions in the loan agreement itself,
and common-law fraud protections under applicable state law.
How
a Fund Invests in Loans. A Fund may invest in loans in one or more
of three ways: a Fund may invest directly in a loan by acting as an original Lender; a Fund may invest directly in a loan by purchasing
a loan by an assignment (an “Assignment”) from the Agent or other Lender; or a Fund may invest indirectly in a loan by purchasing
a participation interest in a loan (Participation Interest) from an Agent or other Lender. A Fund may also gain exposure to loans indirectly
using certain derivative instruments, which is discussed elsewhere in this SAI.
•
Original
Lender. A Fund can invest in loans, generally “at par”
(a price for the loan equal approximately to 100% of a funded principal amount of the loan, minus any original issue discount) as an original
lender. When a Fund is an original lender, it is entitled to receive a return at the full interest rate for the loan. When a Fund is an
original lender, it will have a direct contractual relationship with the borrower and will have direct recourse against the borrower in
the event the borrower fails to pay scheduled principal or interest.
•
Assignments.
A Fund may also purchase a loan by assignment. When a Fund purchases a loan by assignment, it typically succeeds to whatever rights and
obligations the assigning lender had under the loan agreement and becomes a “lender” under the loan agreement, entitled
to the same rights (including, but not limited to, enforcement or set-off rights) that are available to lenders generally.
•
Participation
Interests. These investments represent an undivided, indirect interest
in a loan obligation of a borrower. They are typically purchased from banks or dealers that have made the loan, or are members of the
loan syndicate. The participation seller remains as lender of record, and continues to face the borrower, the agent, and the other parties
to the loan agreement, while a Fund generally acquires beneficial ownership of the loan. Participation interests are subject to the ongoing
counterparty risk of the participation seller (and, in certain circumstances, such seller’s credit risk) as well as the credit
risk of the borrower.
While
a Fund expects to have access to financial and other information regarding the borrower that has been
made available to the lenders under a loan, it may not have such information in connection with participation interests and certain loan
assignments. Additionally, the amount of public information available with respect to loans generally will be less extensive than what
is available for exchange-listed or otherwise registered securities.
Participation
interests involve risks for a Fund. Participation interests are primarily dependent upon the creditworthiness
of the borrower, which is obligated to make payments of principal and interest on the loan. In buying a participation interest, however,
a Fund assumes both the credit risk of the borrower and the counterparty risk of the Lender selling the participation interest. As with
an assignment or a loan originated by a Fund, there is a risk that a borrower may have difficulty making payments. If a borrower fails
to pay scheduled interest or principal payments, a Fund’s income may be reduced and the value of the investment in the participation
interest might also decline. Further, the seller of the participation interest will have no obligation to a Fund other than to pay a Fund
the proportionate amount of the principal and interest payments
41
it
receives from the borrower. In addition, if the seller of the participation interest fails to perform its obligations,
purchasers might incur costs and delays in realizing payment and suffer a loss of principal and/or interest, including in cases where
the borrower may have performed its obligation to the Lender that issued the participation (e.g., if the participation seller fails to
pass along to a Fund payments received from the borrower). Although most participation interests purchased by a Fund are structured to
cause a Fund to become beneficial owner of the relevant loans, and therefore avoid this outcome, if a Lender that sells a Fund a participation
interest becomes insolvent, a Fund may be treated as a general creditor of the Lender. As a general creditor, a Fund will have to share
the proceeds of the loan with any other creditors of the Lender. A Fund will acquire a participation interest only if the investment adviser
determines that the Lender (or other intermediary Participant) selling the participation interest is creditworthy.
A
Fund’s rights under a participation interest with respect to a particular loan may be more limited than the rights
of original Lenders or of investors who acquire an assignment of that loan. A Fund has the right to receive payments of principal, interest
and any fees to which it is entitled only from the Lender selling the participation interest and only when the Lender receives the payments
from the borrower. In purchasing participation interests, a Fund will usually have a contractual relationship only with the selling institution
and not the underlying borrower. A Fund generally will have no right directly to enforce compliance by the borrower with the terms of
the related loan agreement, nor will a Fund necessarily have the right to object to certain changes to the loan agreement agreed to by
the selling institution. If a Fund buys a participation interest in a loan, a Fund may be subject to any rights of set-off the borrower
has against the selling institution (although recourse to the selling institution may be available in the event of any such set-off).
In the event of bankruptcy or insolvency of the borrower, the obligation of the borrower to repay the loan may be subject to certain defenses
that can be asserted by the borrower as a result of any improper conduct of the Lender selling the participation (although recourse to
the Lender may be available). As a result, a Fund may be subject to delays, expenses and risks that are greater than those that exist
when a Fund is an original Lender or assignee, and therefore a participation may be relatively illiquid as compared to a direct investment
in a loan because of a smaller universe of investors who are willing to assume these additional risks present in a participation.
Fees.
A Fund may be required to pay and may receive various fees and commissions in connection with purchasing, selling and holding interests
in loans. Borrowers typically pay three kinds of fees to Lenders: facility fees (which may be structured as original issue discount) when
a loan is originated; commitment fees on an ongoing basis based on the unused portion of a loan commitment; and prepayment penalties when
a borrower prepays a loan.
A
Fund receives these fees directly from the borrower if a Fund is an original Lender or, in the case of commitment
fees and prepayment penalties, if a Fund acquires an assignment. Whether a Fund receives a facility fee in the case of an assignment or
participation interest depends on negotiations between a Fund and the Lender selling the interests.
When
a Fund buys an assignment or a participation, it may be required to pay a fee, or cede a portion of the
interest and fees that accrued prior to settlement of the assignment, to the lender selling the assignment or the participant. Occasionally,
the selling lender pays a fee to the assignee or the participant. If a Fund assigns a loan or sells a participation, it may be required
to pass along to a buyer a portion of any interest and fees that a Fund would otherwise be entitled to. In addition, in the case of an
assignment, a Fund may be required to pay a transfer fee to the lending agent. If a Fund sells a participation Interest, a Fund may be
required to pay a transfer fee to the Lender that holds the nominal interest in the loan.
Highly
Leveraged Transactions and Insolvent Borrowers. A Fund can invest
in loans made in connection with highly leveraged transactions. These transactions may include operating loans, leveraged buyout loans,
leveraged capitalization loans and other types of acquisition financing. Those loans are subject to greater credit risks than other loans.
Highly leveraged loans and loans in default also may be less liquid than other loans. If a Fund voluntarily or involuntarily sold those
types of loans, it might not receive the full value it expected.
42
A
Fund can also invest in loans of borrowers that are experiencing, or are likely to experience, financial difficulty.
In addition, a Fund can invest in loans of borrowers that have filed for bankruptcy protection or that have had involuntary bankruptcy
petitions filed against them by creditors. Various laws enacted for the protection of debtors may apply to loans. A bankruptcy proceeding
against a borrower could delay or limit the ability of a Fund to collect the principal and interest payments on that borrower’s
loans. If a lawsuit is brought by creditors of a borrower under a loan, a court or a trustee in bankruptcy could take certain actions
that would be adverse to a Fund. For example:
•
Other
creditors might convince the court to set aside a loan or the collateralization of the loan as a “fraudulent conveyance”
or “preferential transfer.” In that event, the court could recover from a Fund the interest and principal payments that
the borrower made before becoming insolvent. There can be no assurance that a Fund would be able to prevent that recapture.
•
A
bankruptcy court may restructure the payment obligations under the loan so as to reduce the amount to which a Fund would be entitled.
•
The
court might discharge the amount of the loan that exceeds the value of the collateral or assets to which the lenders have recourse.
•
The
court could subordinate a Fund’s rights to the rights of other creditors of the borrower under applicable law.
Borrower
Covenants and Lender Rights. Loan agreements generally have contractual
terms designed to protect Lenders. Loan agreements often include restrictive covenants that limit the activities of the borrower. A restrictive
covenant is a promise by the borrower not to take certain actions that might impair the rights of Lenders. Those covenants typically require
the scheduled payment of interest and principal and may include restrictions on dividend payments and other distributions to the borrower’s
shareholders, provisions requiring the borrower to maintain specific financial ratios or relationships and limits on the borrower’s
total debt. In addition, a covenant may require the borrower to prepay the loan or debt obligation with any excess cash flow, proceeds
of asset sales or casualty insurance, or other available cash. Excess cash flow generally includes net cash flow after scheduled debt
service payments and permitted capital expenditures, among other things, as well as the proceeds from asset dispositions or sales of securities.
A breach of a covenant (after the expiration of any cure period) in a loan agreement that is not waived by the Agent and the Lenders normally
is an event of default, permitting acceleration of the loan. This means that the Agent has the right to demand immediate repayment in
full of the outstanding loan. If a loan is not paid when due, or if upon acceleration of a loan, the borrower fails to repay principal
and accrued (but unpaid) interest in full, this failure may result in a reduction in value of the loan (and possibly a Fund’s net
asset value).
Lenders
typically have certain voting and consent rights under a loan agreement. Action subject to a Lender
vote or consent generally requires the vote or consent of the holders of some specified percentage of the outstanding principal amount
of a loan. Certain decisions, such as reducing the amount or increasing the time for payment of interest on or repayment of principal
of a loan, or releasing collateral for the loan, frequently requires the unanimous vote or consent of all Lenders affected.
If
a Fund is not a direct lender under the loan because it has invested via a participation, derivative or other
indirect means, a Fund may not be entitled to exercise some or all of the Lender rights described in this section.
Delayed
Draw Loans. There
may be obligations under a loan agreement to make disbursements of loans after the initial disbursement in certain circumstances, for
example if the loan was partially “unfunded” at the time the Fund invested or if there otherwise is an ongoing commitment
from the lenders to disburse further loans. The Fund will not purchase a loan that would require the Fund to make additional loans unless
it reasonably believes, at
the time it enters into such loan agreement, that it will have sufficient cash and cash equivalents to meet its obligations with respect
to all of its unfunded commitments, in each case as they come due.
43
Delayed
Settlement. Compared to securities and to certain other types of
financial assets, purchases and sales of loans, including via participation, take relatively longer to settle. This is partly due to the
nature of loans, which require a written assignment agreement and various ancillary documents for each transfer, and frequently require
discretionary consents from both the borrower and the administrative agent. In addition, dealers frequently insist on matching their purchases
and sales, which can lead to delays in a Fund’s settlement of a purchase or sale in circumstances where the dealer’s corresponding
transaction with another party is delayed. Dealers will also sometimes sell loans short, and hold their trades open for an indefinite
period while waiting for a price movement or looking for inventory to purchase.
This
extended settlement process can (i) increase the counterparty credit risk borne by a Fund; (ii) leave a
Fund unable to timely vote, or otherwise act with respect to, loans it has agreed to purchase; (iii) delay a Fund from realizing the proceeds
of a sale of a loan; (iv) inhibit a Fund’s ability to re-sell a loan that it has agreed to purchase if conditions change (leaving
a Fund more exposed to price fluctuations); (v) prevent a Fund from timely collecting principal and interest payments; and (vi) expose
a Fund to adverse tax or regulatory consequences.
The
Loan Syndications and Trading Association (the “LSTA”) has promulgated a “delay compensation” provision
in its standard loan documentation that mitigates the direct risk of permanently losing interest payments as a result of delayed settlement
by causing interest to begin to accrue for the buyer’s account after the seventh business day following the trade date (for distressed
trades, the twentieth business day). However, this does not mitigate the other risks of delayed settlement. In addition, the mechanism
itself can result in opportunistic behavior: A seller, having locked in its trade, might delay closing for seven business days in order
to maximize its interest collections, even if it could have closed earlier, while a buyer may no longer feel any pressure to close at
all, since interest is accruing for its benefit, and may choose to use its cash elsewhere. The LSTA has further attempted to put an outer
limit on long, unjustified settlement delays by promulgating “buy-in/sell-out” provisions that allow a party to enter into
a “cover” trade if the other party refuses to close. However, these provisions are complicated, time-consuming, and little-used,
and are in any event not triggered until the fifteenth business day after the trade date (for distressed trades, the fiftieth business
day). To the extent the extended loan settlement process gives rise to short-term liquidity needs, such as the need to satisfy redemption
requests, a Fund may hold cash, sell investments or temporarily borrow from banks or other lenders.
Structured
Notes and Indexed Securities. Structured
notes are derivative debt instruments, the interest rate or principal of which is linked to currencies, interest rates, commodities, indices
or other financial indicators (reference instruments). Indexed securities may include structured notes and other securities wherein the
interest rate or principal is determined by a reference instrument.
Most
structured notes and indexed securities are fixed income securities that have maturities of three years
or less. The interest rate or the principal amount payable at maturity of an indexed security may vary based on changes in one or more
specified reference instruments, such as a floating interest rate compared with a fixed interest rate. The reference instrument need not
be related to the terms of the indexed security. Structured notes and indexed securities may be positively or negatively indexed (i.e.,
their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates), and may have return
characteristics similar to direct investments in the underlying reference instrument or to one or more options on the underlying reference
instrument.
Structured
notes and indexed securities may entail a greater degree of market risk than other types of debt
securities because the investor bears the risk of the reference instrument. Structured notes or indexed securities also may be more volatile,
less liquid, and more difficult to accurately price than less complex securities and instruments or more traditional debt securities.
In addition to the credit risk of the structured note or indexed security’s issuer and the normal risks of price changes in response
to changes in interest rates, the principal amount of structured notes or indexed securities may decrease as a result of changes in the
value of the underlying reference instruments. Further, in the case of certain structured notes or indexed securities in which the interest
rate, or exchange rate in the case of currency, is linked to a reference
44
instrument,
the rate may be increased or decreased or the terms may provide that, under certain circumstances,
the principal amount payable on maturity may be reduced to zero resulting in a loss to the Fund.
Investments
in Commodity-Linked Notes. A commodity-linked note is a derivative
instrument that has characteristics of a debt security and of a commodity-linked derivative. A commodity-linked note typically provides
for interest payments and a principal payment at maturity linked to the price movement of the underlying commodity, commodity index or
commodity futures or option contract.
Qualifying
Hybrid Instruments. “Qualifying hybrid instruments”
are commodity-linked notes that are excluded from regulation under the Commodity Exchange Act and the rules thereunder.
Distressed
Debt Securities. A Fund may invest in securities, including loans
purchased in the secondary market, that are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default
as to the repayment of principal and/or interest at the time of acquisition by a Fund or that are rated in the lower rating categories
by one or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by S&P
or Fitch) or, if unrated, are in the judgment of the Adviser or Sub-Adviser of equivalent quality (“Distressed Securities”).
Investment in Distressed Securities is speculative and involves significant risks.
A
Fund will generally make such investments only when the Adviser or Sub-Adviser believes it is reasonably
likely that the issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization pursuant
to which a Fund will receive new securities in return for the Distressed Securities. However, there can be no assurance that such an exchange
offer will be made or that such a plan of reorganization will be adopted. Additionally, a significant period of time may pass between
the time at which a Fund makes its investment in Distressed Securities and the time that any such exchange offer or plan of reorganization
is completed, if at all. During this period, it is unlikely that a Fund would receive any interest payments on the Distressed Securities,
a Fund will be subject to significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed
and a Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, a Fund’s ability
to achieve current income for its shareholders may be diminished. Each Fund also will be subject to significant uncertainty as to when
and in what manner and for what value the obligations evidenced by the distressed securities will eventually be satisfied (e.g., through
a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the distressed securities or a payment
of some amount in satisfaction of the obligation). Even if an exchange offer is made or plan of reorganization is adopted with respect
to Distressed Securities held by a Fund, there can be no assurance that the securities or other assets received by the Fund in connection
with such exchange offer or plan of reorganization will not have a lower value or income potential than may have been anticipated when
the investment was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of reorganization
may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any exchange offer or plan of reorganization
with respect to an issuer of Distressed Securities, a Fund may be restricted from disposing of such securities. To the extent that a Fund
becomes involved in such proceedings, the Fund may have a more active participation in the affairs of the issuer than that assumed generally
by an investor. Each Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s
affairs.
Principal
Protection. Commodity-linked notes may be principal protected,
partially protected, or offer no principal protection. A principal protected commodity-linked note means that the issuer will pay, at
a minimum, the par value of the note at maturity. Therefore, if the commodity value to which the commodity-linked note is linked declines
over the life of the note, an Underlying Fund will receive at maturity the face or stated value of the note.
With
a principal protected commodity-linked note, an Underlying Fund will receive at maturity the greater of
the par value of the note or the value of the underlying commodity or index. This protection is, in effect, an option whose value is subject
to the volatility and price level of the underlying commodity. This optionality can be added to the note’s structure, but only
for a cost higher than that of a partially protected (or no protection)
45
commodity-linked
note. The Underlying Fund’s decision on whether to use principal protection depends in part on
the cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation to buy back
the security, and therefore depends on the creditworthiness of the issuer.
With
full principal protection, an Underlying Fund will receive at maturity of the commodity-linked note either
the stated par value of the commodity-linked note, or potentially, an amount greater than the stated par value if the underlying commodity,
index, futures or option contract or other underlying economic variable increases in value. Partially protected commodity-linked notes
may suffer some loss of principal if the underlying commodity, index, futures or options contract or other economic variable declines
in value during the term of the note. However, partially protected commodity-linked notes have a specified limit as to the amount of principal
that they may lose.
Limitations
on Leverage. Some of the commodity-linked notes in which an Underlying
Fund invests may involve leverage. To avoid being subject to undue leverage risk, the fund will seek to limit the amount of economic leverage
it has under one commodity-linked note in which it invests and the leverage of the fund’s overall portfolio. The Underlying Fund
will not invest in a commodity-linked note if, at the time of purchase:
1.
the note’s “leverage ratio” exceeds 300% of the price increase in the underlying commodity, futures or option
contract, index or other economic variable;
2.
the Underlying Fund’s “portfolio leverage ratio” exceeds
150%, measured at the time of purchase.
“Leverage
ratio” is the expected increase in the value of a commodity-linked note, assuming a one percent
price increase in the underlying commodity, commodity index or other economic factor. In other words, for a commodity-linked note with
a leverage factor of 150%, a 1% gain in the underlying economic variable would be expected to result in a 1.5% gain in value for the commodity-linked
note. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all instruments in the Fund’s
portfolio as measured by their notional values.
The
Underlying Fund’s use of commodity-linked notes and other commodity-linked derivatives is also subject
to regulatory requirements that are intended to reduce the effects of the instruments’ economic leverage. For more information,
see “Commodity Exchange Act (CEA) Regulation and Exclusions” below.
Commodity-Linked
Notes Without Principal Protection. An Underlying Fund may also
invest in commodity-linked notes that offer no principal protection. At maturity, there is a risk that the underlying commodity price,
futures or option contract, index or other economic variable may have declined sufficiently in value such that some or all of the face
value of the commodity-linked note might not be returned. Some of the commodity-linked notes that the fund may invest in may have no principal
protection and the note could lose all of its value.
With
a partially-protected or no-principal-protection commodity-linked note, an Underlying Fund may receive
at maturity an amount less than the note’s par value if the commodity, index or other economic variable value to which the note
is linked declines over the term of the note. An Underlying Fund’s manager or sub-adviser, at its discretion, may invest in a partially
protected principal commodity-linked note or a note without principal protection. In deciding to purchase a note without principal protection,
the manager or sub-adviser may consider, among other things, the expected performance of the underlying commodity futures or option contract,
index or other economic variable over the term of the note, the cost of the note, and any other economic factors which the manager or
sub-adviser believes are relevant.
Counterparty
Risk. A significant risk of commodity-linked notes is counterparty
risk. The Underlying Fund will take on the counterparty credit risk of the issuer. That is, at maturity of a commodity-linked note, there
is a risk that the issuer may be unable to perform its obligations under the terms of the commodity-linked note. Issuers of commodity-linked
notes are typically large money center banks, broker-dealers, other financial institutions and large corporations. To minimize this risk
an Underlying Fund will transact, to the extent possible, with issuers who have an investment-grade credit rating from an NRSRO.
U.S.
Corporate Debt Obligations. Corporate debt obligations are debt
obligations issued or guaranteed by corporations that are denominated in U.S. dollars. Such investments may include, among others,
46
commercial
paper, bonds, notes, debentures, variable rate demand notes, master notes, funding agreements and
other short-term corporate instruments. Commercial paper consists of short-term promissory notes issued by corporations. Commercial paper
may be traded in the secondary market after its issuance. Variable rate demand notes are securities with a variable interest which is
readjusted on pre-established dates. Variable rate demand notes are subject to payment of principal and accrued interest (usually within
seven days) on a Fund’s demand. Master notes are negotiated notes that permit the investment of fluctuating amounts of money at
varying rates of interest pursuant to arrangements with issuers who meet the credit quality criteria of the Fund. The interest rate on
a master note may fluctuate based upon changes in specified interest rates or be reset periodically according to a prescribed formula
or may be a set rate. Although there is no secondary market in master notes, if such notes have a demand feature, the payee may demand
payment of the principal amount of the note upon relatively short notice. Funding agreements are agreements between an insurance company
and a Fund covering underlying demand notes. Although there is no secondary market in funding agreements, if the underlying notes have
a demand feature, the payee may demand payment of the principal amount of the note upon relatively short notice. Master notes and funding
agreements are generally illiquid and therefore subject to the Funds' percentage limitation for illiquid investments.
Other
Investments
Real
Estate Investment Trusts (REITs). Certain Funds may invest in equity
interests and/or debt obligations issued by REITs. Certain Funds can invest in real estate development companies and operating companies
in addition to REITs. They can also buy shares of companies engaged in other real estate businesses.
REITs
are trusts that sell equity or debt securities to investors and use the proceeds to invest in real estate
or interest therein. A REIT may focus on particular projects, such as apartment complexes, or geographic regions, such as the southeastern
United States or both. Equity REITs invest the majority of their assets directly in real property and derive income primarily from the
collection of rents. Equity REITs can also realize capital gains by selling property that has appreciated in value. Mortgage REITs invest
the majority of their assets in real estate mortgages and derive income from the collection of interest payments.
Investments
in REITs may be subject to many of the same risks as direct investments in real estate. These
risks include difficulties in valuing and trading real estate, declines in the value of real estate, risks related to general and local
economic conditions, adverse changes in the climate for real estate, environmental liability risks, increases in property taxes and operating
expenses, changes in zoning laws, casualty or condemnation losses, limitations on rents, changes in neighborhood values, the appeal of
properties to tenants, heavy cash flow dependency and increases in interest rates. To the extent that a Fund invests in REITs, the Fund
could conceivably acquire real estate directly as a result of a default on the REIT interests or obligations it owns.
In
addition to the risks of direct real estate investment described above, equity REITs may be affected by any
changes in the value of the underlying property owned by the trusts, while mortgage REITs may be affected by the quality of any credit
extended. REITs are also subject to the following risks: they are dependent upon management skill and on cash flows; are not diversified;
are subject to defaults by borrowers, self-liquidation, and the possibility of failing to maintain an exemption from the 1940 Act; and
are subject to interest rate risk. A Fund that invests in REITs will bear a proportionate share of the expenses of the REITs.
Furthermore,
for tax reasons, a REIT may impose limits on how much of its securities any one investor may
own. These ownership limitations (also called “excess share provisions”) may be based on ownership of securities by multiple
funds and accounts managed by the same investment adviser and typically result in adverse consequences (such as automatic divesture of
voting and dividend rights for shares that exceed the excess share provision) to investors who exceed the limit. A REIT’s excess
share provision may result in a Fund being unable to purchase (or otherwise obtain economic exposure to) the desired amounts of certain
REITs. In some circumstances, a Fund may seek and obtain a waiver from a REIT to exceed the REIT’s
47
ownership
limitations without being subject to the adverse consequences of exceeding such limit were a waiver
not obtained, provided that the Fund complies with the provisions of the waiver.
Regulation
S Securities. Regulation S securities of U.S. and non-U.S. issuers
are offered through private offerings without registration with the SEC pursuant to Regulation S of the 1933 Act. Offerings of Regulation
S securities may be conducted outside of the United States, and Regulation S securities may be relatively less liquid as a result of legal
or contractual restrictions on resale. Although Regulation S securities may be resold in privately negotiated transactions, the price
realized from these sales could be less than that originally paid by a Fund. Further, companies whose securities are not publicly traded
may not be subject to the disclosure and other investor protection requirements that would be applicable if their securities were publicly
traded. Accordingly, Regulation S securities may involve a high degree of business and financial risk and may result in substantial losses.
Other
Investment Companies. Unless otherwise indicated in this SAI or
in a Fund’s prospectus, each Fund (including certain of the Underlying Funds in which the Asset Allocation Funds invest) may purchase
shares of other investment companies, including exchange-traded funds (“ETFs”), non-exchange traded U.S. registered open-end
investment companies (mutual funds), closed-end investment companies, or non-U.S. investment companies traded on foreign exchanges. When
a Fund purchases shares of another investment company, the Fund will indirectly bear its proportionate share of the advisory fees and
other operating expenses of such investment company and will be subject to the risks associated with the portfolio investments of the
underlying investment company.
A
Fund’s investment in the securities of other investment companies is subject to the applicable provisions
of the 1940 Act and the rules thereunder. Specifically, Section 12(d)(1) of the 1940 Act contains various limitations on the ability of
a registered investment company (an “acquiring fund”) to acquire shares of another registered investment company (an “acquired
fund”). Under these limits, an acquiring fund generally cannot (i) purchase more than 3% of the total outstanding voting stock
of an acquired fund; (ii) invest more than 5% of its total assets in securities issued by an acquired company; and (iii) invest more than
10% of its total assets in securities issued by other investment companies. Likewise, an acquired fund, as well as its principal underwriter
or any broker or dealer registered under the Securities Exchange Act of 1934, cannot knowingly sell more than 3% of the total outstanding
voting stock of the acquired fund to an acquiring fund, or more than 10% of the total outstanding voting stock of the acquired fund to
acquiring funds generally.
Rule
12d1-4 under the 1940 Act, which became effective January 19, 2022, created a regulatory framework
for funds’ investments in other funds. Rule 12d1-4 allows a fund to acquire the securities of another investment company in excess
of the limitations imposed by Section 12 without obtaining an exemptive order from the SEC, subject to certain limitations and conditions.
Among those conditions is the requirement that, prior to a fund relying on Rule 12d1-4 to acquire securities of another fund in excess
of the limits of Section 12(d)(1), the acquiring fund must enter into a Fund of Funds Agreement with the acquired fund. (This requirement
does not apply when the acquiring fund’s investment adviser acts as the acquired fund’s investment adviser and does not
act as sub-adviser to either fund.)
Rule
12d1-4 also is designed to limit the use of complex fund structures. Under Rule 12d1-4, an acquired fund
is prohibited from purchasing or otherwise acquiring the securities of another investment company or private fund if, immediately after
the purchase, the securities of investment companies and private funds owned by the acquired fund have an aggregate value in excess of
10% of the value of the acquired fund’s total assets, subject to certain limited exceptions. Accordingly, to the extent a Fund’s
shares are sold to other investment companies in reliance on Rule 12d1-4, the Fund will be limited in the amount it could invest in other
investment companies and private funds.
In
addition to Rule 12d1-4, the 1940 Act and related rules provide other exemptions from these restrictions.
For example, these limitations do not apply to investments by a Fund in investment companies that are money market funds, including money
market funds that have the Adviser or an affiliate of the Adviser as an investment adviser.
48
Limited
Partnerships. A limited partnership interest entitles the Fund
to participate in the investment return of the partnership’s assets as defined by the agreement among the partners. As a limited
partner, the Fund generally is not permitted to participate in the management of the partnership. However, unlike a general partner whose
liability is not limited, a limited partner’s liability generally is limited to the amount of its commitment to the partnership.
Master
Limited Partnerships (MLPs). MLPs generally are limited partnerships
(or limited liability companies), the common units of which are listed and traded on a national securities exchange or over-the-counter.
MLPs generally have two classes of partners, the general partner and the limited partners. The general partner normally controls the MLP
through an equity interest plus units that are subordinated to the common (publicly traded) units for an initial period and then only
converting to common if certain financial tests are met. The general partner also generally receives a larger portion of the net income
as incentive. As cash flow grows, the general partner receives a greater interest in the incremental income compared to the interest of
limited partners.
MLP
common units represent an equity ownership interest in a partnership, providing limited voting rights and
entitling the holder to a share of the company’s success through distributions and/or capital appreciation. Unlike shareholders
of a corporation, common unit holders do not elect directors annually and generally have the right to vote only on certain significant
events, such as mergers, a sale of substantially all of the assets, removal of the general partner or material amendments to the partnership
agreement. MLPs are required by their partnership agreements to distribute a large percentage of their current operating earnings. Common
unit holders generally have first right to a minimum quarterly distribution (MQD) prior to distributions to the convertible subordinated
unit holders or the general partner (including incentive distributions). Common unit holders typically have arrearage rights if the MQD
is not met. In the event of liquidation, MLP common unit holders have first right to the partnership’s remaining assets after bondholders,
other debt holders, and preferred unit holders have been paid in full.
The
general partner or managing member interest in an MLP is typically retained by the original sponsors of
an MLP, such as its founders, corporate partners and entities that sell assets to the MLP. The holder of the general partner or managing
member interest can be liable in certain circumstances for amounts greater than the amount of the holder’s investment in the general
partner or managing member. General partner or managing member interests often confer direct board participation rights in, and in many
cases control over the operations of, the MLP. General partner or managing member interests can be privately held or owned by publicly
traded entities. General partner or managing member interests receive cash distributions, typically in an amount of up to 2% of available
cash, which is contractually defined in the partnership or limited liability company agreement. In addition, holders of general partner
or managing member interests typically receive incentive distribution rights (IDRs), which provide them with an increasing share of the
entity’s aggregate cash distributions upon the payment of per common unit distributions that exceed specified threshold levels
above the MQD. Incentive distributions to a general partner are designed to encourage the general partner, who controls and operates the
partnership, to maximize the partnership’s cash flow and increase distributions to the limited partners. Due to the IDRs, general
partners of MLPs have higher distribution growth prospects than their underlying MLPs, but quarterly incentive distribution payments would
also decline at a greater rate than the decline rate in quarterly distributions to common and subordinated unit holders in the event of
a reduction in the MLP’s quarterly distribution. The ability of the limited partners or members to remove the general partner or
managing member without cause is typically very limited. In addition, some MLPs permit the holder of IDRs to reset, under specified circumstances,
the incentive distribution levels and receive compensation in exchange for the distribution rights given up in the reset.
Some
companies in which a Fund may invest have been organized as limited
liability companies (MLP LLCs). Such MLP LLCs generally are treated in the same manner as MLPs for federal income tax purposes (i.e.,
generally taxed as partnerships). MLP LLC common units trade on a national securities exchange or OTC. In contrast to MLPs, MLP LLCs have
no general partner and there are generally no incentives that entitle management or other unitholders to increased percentages of cash
distributions as distributions reach higher target levels. In addition, MLP LLC common unitholders typically have voting rights with respect
to the MLP LLC, whereas MLP common units have limited voting rights.
49
Investments
in securities of an MLP involve risks that differ from investments in common stock, including risks
related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between
the MLP and the MLP’s general partner, cash flow risks, dilution risks and risks related to the general partner’s right
to require unit-holders to sell their common units at an undesirable time or price. Certain MLP securities may trade in lower volumes
due to their smaller capitalizations, and may be subject to more abrupt or erratic price movements and lower market liquidity. MLPs are
generally considered interest-rate sensitive investments. During periods of interest rate volatility, these investments may not provide
attractive returns.
There
are also certain tax risks undertaken by the Fund when it invests in MLPs. MLPs are generally treated
as partnerships for U.S. federal income tax purposes. Partnerships do not pay U.S. federal income tax at the partnership level, subject
to the application of certain partnership audit rules. Rather, each partner is allocated a share of the partnership’s income, gains,
losses, deductions and expenses. A change in current tax law or a change in the underlying business mix of a given MLP could result in
an MLP being treated as a corporation for U.S. federal income tax purposes, which would result in the MLP being required to pay U.S. federal
income tax (as well as state and local income taxes) on its taxable income. This would have the effect of reducing the amount of cash
available for distribution by the MLP and could result in a reduction in the value of the Fund’s investment in the MLP and lower
income to the Fund. Also, to the extent a distribution received by a Fund from an MLP is treated as a return of capital, the Fund’s
adjusted tax basis in the interests of the MLP will be reduced, which may increase the Fund’s tax liability upon the sale of the
interests in the MLP or upon subsequent distributions in respect of such interests.
Private
Equity and Debt Investments. Privately issued securities, which
include private investments in public equity (PIPEs), and private debt investments, involve an extraordinarily high degree of business
and financial risk and can result in substantial or complete losses. Some portfolio companies in which the Fund may invest may be operating
at a loss or with substantial variations in operating results from period to period and may need substantial additional capital to support
expansion or to achieve or maintain competitive positions. Such companies may face intense competition, including competition from companies
with much greater financial resources, much more extensive development, production, marketing and service capabilities and a much larger
number of qualified managerial and technical personnel. The Fund can offer no assurance that the marketing efforts of any particular portfolio
company will be successful or that its business will succeed. Additionally, privately held companies are not subject to SEC reporting
requirements or the reporting requirements of publicly traded companies in applicable jurisdictions, are not required to maintain their
accounting records in accordance with generally accepted accounting principles, and are not required to maintain effective internal controls
over financial reporting. As a result, the Adviser may not have timely or accurate information about the business, financial conditions
and results of operations of the privately held companies in which the Fund invests. The more limited financial information and lack of
publicly available prices require a Fund to determine a fair value for such investments in accordance with the valuation policy
approved by the Board and related procedures. Difficulty in valuing
such investments may make it difficult to accurately determine a Fund's exposure to privately issued securities. The Fund’s NAV
could be adversely affected if the Fund’s determinations regarding the fair value of the Fund’s investments were materially
higher than the values that the Fund ultimately realizes upon the disposal of such investments. In addition, input from the Adviser’s
investment professionals as part of the Fund’s valuation process could result in a conflict of interest as the Adviser’s
management fee is based, in part, on the value of the Fund’s assets.
Investments
in private companies may be considered to be illiquid and may be difficult to sell at a desirable
time or at the prices at which the Fund has valued the investments. Additional risks include that the Fund could be subject to contingent
liabilities in the event a private issuer is acquired by another company during the period it is held by the Fund; and that the company
may be using excessive leverage. Privately issued debt securities can often be below investment grade quality and frequently are unrated.
Private
Investments in Public Equity. Private investments in public equity
(PIPES) are equity securities in a private placement that are issued by issuers who have outstanding, publicly-traded equity securities
of the same class. Shares in PIPES generally are not registered with the SEC until after a certain time period from the date the private
sale is completed. This restricted period can last many months. Until the public
50
registration
process is completed, PIPES are restricted as to resale and the Fund cannot freely trade the securities.
Generally, such restrictions cause the PIPES to be illiquid during this time. PIPES may contain provisions that the issuer will pay specified
financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period
of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain
in effect.
Defaulted
Securities. Defaulted
securities are debt securities on which the issuer is not currently making interest payments. In order to enforce its rights in defaulted
securities, a Fund may be required to participate in legal proceedings or take possession of and manage assets securing the issuer’s
obligations on the defaulted securities. This could increase operating expenses and adversely affect net asset value. Risks of defaulted
securities may be considerably higher as they are generally unsecured and subordinated to other creditors of the issuer. Investments in
defaulted securities generally will also be considered illiquid investments subject to the limitations described herein, except as otherwise
may be determined under the Trust’s applicable policies and procedures.
Municipal
Forward Contracts. A municipal forward contract is an agreement
by a Fund to purchase a Municipal Security on a when-issued basis with a longer-than-standard settlement period, in some cases with the
settlement date taking place up to five years from the date of purchase. Municipal forward contracts typically carry a substantial yield
premium to compensate the buyer for the risks associated with a long when-issued period, including shifts in market interest rates that
could materially impact the principal value of the bond, deterioration in the credit quality of the issuer, loss of alternative investment
options during the when-issued period and failure of the issuer to complete various steps required to issue the bonds.
Variable
or Floating Rate Instruments. Variable or floating rate instruments
are securities that provide for a periodic adjustment in the interest rate paid on the obligation. The interest rates for securities with
variable interest rates are readjusted on set dates (such as the last day of the month or calendar quarter) and the interest rates for
securities with floating rates are reset whenever a specified interest rate change occurs. Variable or floating interest rates generally
reduce changes in the market price of securities from their original purchase price because, upon readjustment, such rates approximate
market rates. Accordingly, as market interest rates decrease or increase, the potential for capital appreciation or depreciation is less
for variable or floating rate securities than for fixed rate obligations. Many securities with variable or floating interest rates have
a demand feature allowing the Underlying Fund to demand payment of principal and accrued interest prior to its maturity. The terms of
such demand instruments require payment of principal and accrued interest by the issuer, a guarantor, and/or a liquidity provider. All
variable or floating rate instruments will meet the applicable rating standards of the Fund or Underlying Funds. A Fund's Adviser, or
Sub-Adviser, as applicable, may determine that an unrated floating rate or variable rate demand obligation meets the Fund's rating standards
by reason of being backed by a letter of credit or guarantee issued by a bank that meets those rating standards.
The
secondary market for certain floating rate loans may be subject to irregular trading activity, wide bid/ask
spreads and extended trade settlement periods (in some cases, longer than seven days). Certain floating rate loans held by a Fund might
not be considered securities for purposes of the 1933 Act or the Exchange Act and therefore a risk exists that purchasers, such as the
Funds, may not be entitled to rely on the anti-fraud provisions of those Acts.
Inverse
Floating Rate Obligations. Inverse floating rate obligations are
variable rate debt instruments that pay interest at rates that move in the opposite direction of prevailing interest rates. Because the
interest rate paid to holders of such obligations is generally determined by subtracting a variable or floating rate from a predetermined
fixed rate, the interest rate paid of holders of such obligations will decrease as such variable or floating rate increases and increase
as such variable or floating rate decreases. The inverse floating rate obligations in which the Funds may invest are typically created
through a division of a fixed-rate municipal obligation into two separate instruments, a short-term obligation and a long-term obligation.
The interest rate on the short-term obligation is set at periodic auctions. The interest rate on the long-term obligation which the Fund
may purchase is the rate the issuer would have paid on the fixed income obligation, (i) plus the difference between such fixed rate and
the rate on the short term obligation, if the short-term rate is lower
51
than
the fixed rate; or (ii) minus such difference if the interest rate on the short term obligation is higher than the
fixed rate. These securities have varying degrees of liquidity and the market value of such securities generally will fluctuate in response
to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having
similar credit quality, redemption provisions and maturity. These securities tend to underperform the market for fixed rate bonds in a
rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively
stable. Although volatile, inverse floating rate obligations typically offer the potential for yields exceeding the yields available on
fixed rate bonds with comparable credit quality, coupon, call provisions and maturity. These securities usually permit the investor to
convert the floating rate security counterpart to a fixed rate (normally adjusted downward), and this optional conversion feature may
provide a partial hedge against rising rates if exercised at an opportune time.
Final
rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (commonly
known as the Volcker Rule) prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’
investments in, and relationships with, “covered funds,” as defined in the rules. These rules may preclude banking entities
from sponsoring and/or providing certain services for existing inverse floating rate obligation programs. There can be no assurances that
these programs can be restructured substantially similar to their present form, that new sponsors of inverse floating rate obligations
would begin providing these services, or that alternative forms of leverage will be available to a Fund in order to maintain current levels
of leverage. Any alternative forms of leverage may be less advantageous to a Fund and may adversely affect the Fund’s net asset
value, distribution rate and ability to achieve its investment objective. The ultimate impact of these rules on the inverse floating rate
obligation market and the municipal market generally is not yet certain.
Zero
Coupon and Pay-in-Kind Securities. Zero coupon securities do not
pay interest or principal until final maturity, unlike debt securities that traditionally provide periodic payments of interest (referred
to as a coupon payment). Investors must wait until maturity to receive interest and principal, which increases the interest rate and credit
risks of a zero coupon security. Pay-in-kind securities are securities that have interest payable by delivery of additional securities.
Upon maturity, the holder is entitled to receive the aggregate par value of the securities. Zero coupon and pay-in-kind securities may
be subject to greater fluctuation in value and lower liquidity in the event of adverse market conditions than comparably rated securities
paying cash interest at regular interest payment periods. Investors may purchase zero coupon and pay-in-kind securities at a price below
the amount payable at maturity. The difference between the purchase price and the amount paid at maturity represents “original
issue discount” on the security.
Premium
Securities. Premium
securities are securities bearing coupon rates higher than the then prevailing market rates.
Premium
securities are typically purchased at a “premium,” in other words, at a price greater than the principal
amount payable on maturity. The Fund will not amortize the premium paid for such securities in calculating its net investment income.
As a result, in such cases the purchase of premium securities provides the Fund a higher level of investment income distributable to shareholders
on a current basis than if the Fund purchased securities bearing current market rates of interest. However, the yield on these securities
would remain at the current market rate. If securities purchased by the Fund at a premium are called or sold prior to maturity, the Fund
will realize a loss to the extent the call or sale price is less than the purchase price. Additionally, the Fund will realize a loss of
principal if it holds such securities to maturity.
Stripped
Income Securities. Stripped
Income Securities are obligations representing an interest in all or a portion of the income or principal components of an underlying
or related security, a pool of securities, or other assets. Stripped income securities may be partially stripped so that each class receives
some interest and some principal. However, they may be completely stripped, where one class will receive all of the interest (the interest-only
class or the IO class), while the other class will receive all of the principal (the principal-only class or the PO class).
The
market values of stripped income securities tend to be more volatile in response to changes in interest
rates than are conventional income securities. In the case of mortgage-backed stripped income
52
securities,
the yields to maturity of IOs and POs may be very sensitive to principal repayments (including prepayments)
on the underlying mortgages resulting in a Fund being unable to recoup its initial investment or resulting in a less than anticipated
yield. The market for stripped income securities may be limited, making it difficult for the Fund to dispose of its holdings at an acceptable
price.
Privatizations.
The governments of certain foreign countries have, to varying degrees,
embarked on privatization programs to sell part or all of their interests in government owned or controlled companies or enterprises (privatizations).
The Fund’s investments in such privatizations may include: (i) privately negotiated investments in a government owned or controlled
company or enterprise; (ii) investments in the initial offering of equity securities of a government owned or controlled company or enterprise;
and (iii) investments in the securities of a government owned or controlled company or enterprise following its initial equity offering.
In
certain foreign countries, the ability of foreign entities such as the Fund to participate in privatizations may
be limited by local law, or the terms on which the Fund may be permitted to participate may be less advantageous than those for local
investors. There can be no assurance that foreign governments will continue to sell companies and enterprises currently owned or controlled
by them, that privatization programs will be successful, or that foreign governments will not re-nationalize companies or enterprises
that have been privatized. If large blocks of these enterprises are held by a small group of stockholders the sale of all or some portion
of these blocks could have an adverse effect on the price.
Participation
Notes. Participation
notes, also known as participation certificates, are issued by banks or broker-dealers and are designed to replicate the performance of
foreign companies or foreign securities markets and can be used by the Fund as an alternative means to access the securities market of
a country. Participation notes are generally traded OTC. The performance results of participation notes will not replicate exactly the
performance of the foreign company or foreign securities market that they seek to replicate due to transaction and other expenses. Investments
in participation notes involve the same risks associated with a direct investment in the underlying foreign companies or foreign securities
market that they seek to replicate. In addition, participation notes are subject to counterparty risk, currency risk and reinvestment
risk. Counterparty risk is the risk that the broker-dealer or bank that issues them will not fulfill its contractual obligation to complete
the transaction with the Fund. Participation notes constitute general unsecured contractual obligations of the banks or broker-dealers
that issue them, and a Fund is relying on the creditworthiness of such banks or broker-dealers and has no rights under a participation
note against the issuer of the underlying assets. Additionally, there is a currency risk since the dollar value of the Fund’s foreign
investments will be affected by changes in the exchange rates between the dollar and (a) the currencies in which the notes are denominated,
such as euro denominated participation notes, and (b) the currency of the country in which the foreign company sits. Also, there is a
reinvestment risk because the amounts from the note may be reinvested in a less valuable investment when the note matures.
Investment
in Wholly-Owned Subsidiary. Certain Underlying Funds of the Asset
Allocation Funds may invest up to 25% of its total assets in its wholly-owned and controlled Subsidiary, which is expected to invest primarily
in commodity swaps and futures and option contracts, as well as fixed income securities and other investments intended to serve as margin
or collateral for the Subsidiary's derivative positions or Regulation S securities. As a result, certain Underlying Funds of the Asset
Allocation Funds may be considered to be investing indirectly in these investments through the Subsidiaries.
The
Subsidiaries will not be registered under the 1940 Act and, except otherwise noted in the Underlying Funds’
prospectuses, are not subject to the investor protections of the 1940 Act. Certain Underlying Funds of the Asset Allocation Funds, as
sole shareholders of their respective Subsidiary, will not have all of the protections offered to investors in registered investment companies.
However, because each of certain Underlying Funds of the Asset Allocation Funds wholly-owns and controls its respective Subsidiary, and
certain Underlying Funds of the Asset Allocation Funds and each Subsidiary are managed by the Adviser, it is unlikely that either Subsidiary
will take action contrary to the interests of the certain Underlying Funds of the Asset Allocation Funds or their shareholders. The respective
Trustees of certain Underlying Funds of the Asset Allocation Funds have oversight responsibility for the investment activities of such
Fund, including its investment in its Subsidiary, and such Fund's role as the sole shareholder of its Subsidiary. Also, in managing
53
its
Subsidiary's portfolio, the Adviser will be subject to the same investment restrictions and operational guidelines
that apply to the management of certain Underlying Funds of the Asset Allocation Funds.
Changes
in the laws of the United States and/or the Cayman Islands, under which certain Underlying Funds
of the Asset Allocation Funds and the Subsidiaries are organized, could result in the inability of the certain Underlying Funds of the
Asset Allocation Funds or a Subsidiary to operate as described in this SAI and could negatively affect the certain Underlying Funds of
the Asset Allocation Funds and their respective shareholders. For example, the Government of the Cayman Islands does not currently impose
any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on a Subsidiary. If Cayman Islands
law changes such that a Subsidiary must pay Cayman Islands taxes, certain Underlying Funds of the Asset Allocation Funds shareholders
would likely suffer decreased investment returns.
Investment
Techniques
Forward
Commitments, When-Issued and Delayed Delivery Securities. Certain
Funds may purchase and sell securities on a forward commitment, when-issued and delayed–delivery basis whereby the Fund buys or
sells a security with payment and delivery taking place in the future.
Securities
purchased or sold on a forward commitment, when-issued or delayed delivery basis involve delivery
and payment that take place in the future after the trade date or the date of the commitment to purchase or sell the securities at a pre-determined
price and/or yield. Settlement of such transactions normally occurs a month or more after the purchase or sale commitment is made. Typically,
no interest accrues to the purchaser until the security is delivered. Forward commitments include “to be announced” (TBA)
transactions, which are contracts for the purchase and sale of mortgage-backed securities issued or guaranteed by certain U.S.
agencies or government sponsored enterprises for delivery at a
future settlement
date agreed upon by the two
parties to the transaction, which is typically a month or more after the trade date of the transaction.
On
the trade date of a TBA transaction, the counterparties agree upon
certain criteria for the securities that are to be delivered, including the issuer, maturity, coupon, face value and price, but the precise
securities to be delivered are not specified.
Instead,
the actual securities to be delivered,
which must satisfy the specified criteria, are communicated by
the seller to the buyer shortly before the agreed upon settlement date. Although a Fund generally intends to acquire or dispose of securities
on a forward commitment, when-issued or delayed delivery basis, a Fund may instead sell these securities or its commitment before the
settlement date if deemed advisable. This will frequently be the case for TBA transactions and other forward-settling mortgage-backed
securities transactions. No specific limitation exists as to the percentage of the Fund’s assets which may be used to acquire securities
on a when-issued and delayed delivery basis.
When
purchasing a security on a forward commitment, when-issued or delayed delivery basis, a Fund assumes
the risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when
determining its net asset value. Securities purchased on a forward commitment, when-issued or delayed delivery basis are subject to changes
in value based upon the public’s perception of the creditworthiness of the issuer and changes, real or anticipated, in the level
of interest rates. Accordingly, securities acquired on such a basis may expose a Fund to risks because they may experience such fluctuations
prior to actual delivery. Purchasing securities on a forward commitment, when-issued or delayed delivery basis may involve the additional
risk that the yield available in the market when the delivery takes place actually may be higher than that obtained in the transaction
itself.
Many
forward commitments, when-issued and delayed delivery transactions, including TBAs, are also subject
to the risk that a counterparty may become bankrupt or otherwise fail to perform its obligations due to financial difficulties, including
making payments or fulfilling delivery obligations to a Fund. The Fund may obtain no or only limited recovery in a bankruptcy or other
reorganizational proceedings, and any recovery may be significantly delayed. With respect to TBA transactions and other
forward-settling mortgage-backed securities transactions, the counterparty
risk may be mitigated by the exchange of variation margin between the counterparties on a regular basis as the market value of the deliverable
security fluctuates.
54
Investment
in these types of securities may increase the possibility that the Fund will incur short-term gains
subject to federal taxation or short-term losses if the Fund must engage in portfolio transactions in order to honor its commitment. In
the case of a purchase transaction, the delayed delivery securities, which will not begin to accrue interest or dividends until the settlement
date, will be recorded as an asset of a Fund and will be subject to the risk of market fluctuation. The purchase price of the delayed
delivery securities is a liability of a Fund until settlement. TBA transactions and other forward-settling mortgage-backed securities
transactions may be effected pursuant to a collateral agreement with the counterparty
under which the parties exchange
collateral consisting of cash or liquid securities in an amount
as specified by the agreement that is based on the change in the market value of the TBA transactions governed by the agreement. The Fund
or the counterparty will make payments throughout the term of the transaction as collateral values fluctuate to maintain full collateralization
for the term of the transaction. Collateral will be marked-to-market every business day. If the counterparty defaults on the transaction
or declares bankruptcy or insolvency, a Fund might incur expenses in enforcing its rights, or the Fund might experience delay and costs
in recovering collateral or may suffer a loss if the value of the collateral declines.
When-Issued
and Delayed-Delivery Transactions for Floating Rate Loans. Certain
Funds may purchase and sell interests in floating rate loans and floating rate debt securities and other portfolio securities on a "when-issued"
and "delayed-delivery" basis. When-issued or delayed-delivery means that delivery and payment take place in the future after the date
of the commitment to purchase or sell the securities at a pre-determined price and/or yield. Income may accrue to the Fund on such interests
or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities.
These transactions are subject to market fluctuation; the value of the interests in floating rate loans and floating rate debt securities
and other portfolio debt securities at delivery may be more or less than their purchase price; and yields generally available on such
interests or securities when delivery occurs may be higher than yields on the interests or securities obtained pursuant to such transactions.
Because the Fund relies on the buyer or seller, as the case may be, to consummate the transaction, failure by the other party to complete
the transaction may result in the Fund missing the opportunity of obtaining a price or yield considered to be advantageous. When the Fund
is the buyer in such a transaction, however, it will segregate with its custodian, cash or other liquid assets having an aggregate value
equal to the amount of such purchase commitments until payment is made. The Fund will make commitments to purchase such interests or securities
on such basis only with the intention of actually acquiring these interests or securities, but the Fund may sell such interests or securities
prior to the settlement date if such sale is considered to be advisable. To the extent the Fund engages in "when-issued" and "delayed-delivery"
transactions, it will do so for the purpose of acquiring interests or securities for the Fund consistent with the Fund's investment objective
and policies and not for the purpose of investment leverage. There is no specific limitation as to the percentage of the Fund's assets
that may be used to acquire securities on a "when-issued" or "delayed-delivery" basis.
Short
Sales. The Funds may engage in short sales of securities that the
Fund owns or has the right to obtain (short sales against the box). Invesco Quality Income Fund may engage in short sales of TBA mortgages
that the Fund does not own.
A
short sale involves the sale of a security which a Fund does not own in the hope of purchasing the same
security at a later date at a lower price. To make delivery to the buyer, the Fund must borrow the security from a broker. The Fund normally
closes a short sale by purchasing an equivalent number of shares of the borrowed security on the open market and delivering them to the
broker. A short sale is typically effected when the Fund’s Adviser believes that the price of a particular security will decline.
Open short positions using options, futures, swaps or forward foreign currency contracts are not deemed to constitute selling securities
short.
To
secure its obligation to deliver the securities sold short to the broker
and repay the securities borrowed, a Fund will be required to deposit cash or liquid securities with the broker as collateral. In addition,
a Fund may have to pay a fee or rate of interest to borrow the securities, and while the loan of the security sold short is outstanding,
the Fund is required to pay to the broker the amount of any dividends paid on shares sold
55
short.
The collateral pledged by the Fund to the broker in connection
with short sales will
be marked to market daily. The collateral pledged does not have the effect of limiting the amount of money that a Fund may lose on a short
sale.
Short
positions create a risk that the Fund will be required to cover them by buying the security at a time when
the security has appreciated in value, thus resulting in a loss to the Fund. A short position in a security poses more risk than holding
the same security long. Because a short position loses value as the security’s price increases, the loss on a short sale is theoretically
unlimited. The loss on a long position is limited to what the Fund originally paid for the security together with any transaction costs.
The Fund may not always be able to borrow a security a Fund seeks to sell short at a particular time or at an acceptable price. It is
possible that the market value of the securities the Fund holds in long positions will decline at the same time that the market value
of the securities the Fund has sold short increases, thereby increasing the Fund’s potential volatility and losses. Because a Fund
may be required to pay dividends, interest, premiums and other expenses in connection with a short sale, any benefit for the Fund resulting
from the short sale will be decreased, and the amount of any ultimate gain or loss will be decreased or increased, respectively, by the
amount of such expenses.
Short
sales against the box are short sales of securities that a Fund owns or has the right to obtain (equivalent
in kind or amount to the securities sold short). If a Fund enters into a short sale against the box, it will be required to set aside
securities equivalent in kind and amount to the securities sold short (or securities convertible or exchangeable into such securities)
and will be required to hold such securities while the short sale is outstanding. The Fund will incur transaction costs, including fees
or interest expenses, in connection with opening, maintaining, and closing short sales against the box.
Short
sales against the box result in a “constructive sale” and require a Fund to recognize any taxable gain
unless an exception to the constructive sale applies. See “Dividends, Distributions and Tax Matters — Tax Matters —
Tax Treatment of Portfolio Transactions — Options, futures, forward contracts, swap agreements and hedging transactions.”
Margin
Transactions. The Fund will not purchase any security on margin,
except that each Fund may obtain such short-term credits as may be necessary for the clearance of purchases and sales of portfolio securities.
The payment by a Fund of initial or variation margin in connection with futures, swaps or options transactions and the use of a reverse
repurchase agreement to finance the purchase of a security will not be considered the purchase of a security on margin.
Interfund
Loans. The SEC has issued an exemptive order permitting the Invesco
Funds to borrow money from and lend money to each other for temporary or emergency purposes. The Invesco Funds’ interfund lending
program is subject to a number of conditions, including the requirements that: (1) an interfund loan generally will occur only if the
interest rate on the loan is more favorable to the borrowing fund than the interest rate typically available from a bank for a comparable
transaction and the rate is more favorable to the lending fund than the rate available on overnight repurchase transactions; (2) an Invesco
Fund may not lend more than 15% of its net assets through the program (measured at the time of the last loan); and (3) an Invesco Fund
may not lend more than 5% of its net assets to another Invesco Fund through the program (measured at the time of the loan). The Fund may
participate in the program only if and to the extent that such participation is consistent with the Fund’s investment objective
and investment policies. Interfund loans have a maximum duration of seven days. Loans may be called with one day’s notice and may
be repaid on any day.
Borrowing.
Each Fund may borrow money to the extent permitted under the 1940 Act Laws, Interpretations and Exemptions (defined below). Such borrowings
may be utilized (i) for temporary or emergency purposes; (ii) in anticipation of or in response to adverse market conditions; or, (iii)
for cash management purposes. Invesco Quality Income Fund and certain Underlying Funds may also borrow money to purchase additional securities
when Invesco deems it advantageous to do so. All borrowings are limited to an amount not exceeding 33 1/3% of a Fund's total assets (including
the amount borrowed) less liabilities
56
(other
than borrowings). Any borrowings that exceed this amount will be reduced within three business days to
the extent necessary to comply with the 33 1/3% limitation even if it is not advantageous to sell securities at that time.
If
there are unusually heavy redemptions, a Fund may have to sell a portion of its investment portfolio at a time
when it may not be advantageous to do so. Selling Fund securities under these circumstances may result in a lower net asset value per
share or decreased dividend income, or both. Invesco and the Sub-Advisers believe that, in the event of abnormally heavy redemption requests,
a Fund's borrowing ability would help to mitigate any such effects and could make the forced sale of their portfolio securities less likely.
The
ability of Invesco Quality Income Fund and certain Underlying Funds to borrow money to purchase additional
securities gives that Fund greater flexibility to purchase securities for investment or tax reasons and not to be dependent on cash flows.
To the extent borrowing costs exceed the return on the additional investments, the return realized by the Fund’s shareholders will
be adversely affected. The Fund’s borrowing to purchase additional securities creates an opportunity for a greater total return
to the Fund, but, at the same time, increases exposure to losses. The Fund’s willingness to borrow money for investment purposes,
and the amount it borrows depends upon many factors, including investment outlook, market conditions and interest rates. Successful use
of borrowed money to purchase additional investments depends on Invesco’s or the Sub-Adviser’s ability to predict correctly
interest rates and market movements; such a strategy may not be successful during any period in which it is employed.
The
Funds may borrow from a bank, broker-dealer, or another Invesco Fund. Additionally, the Funds are permitted
to temporarily carry a negative or overdrawn balance in their account with their custodian bank. To compensate the custodian bank for
such overdrafts, the Funds may either (i) leave funds as a compensating balance in their account so the custodian bank can be compensated
by earning interest on such funds; or (ii) compensate the custodian bank by paying it at an agreed upon rate. Certain Underlying Funds
and Invesco Convertible Securities Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed
5% the Fund's total assets or when any borrowings from an Invesco Fund are outstanding.
Lending
Portfolio Securities. Each Fund may lend its portfolio securities
(principally to broker, dealers or other financial institutions) to generate additional income. Such loans are callable at any time
and are continuously secured by segregated collateral equal to no less than the market value, determined daily, of the loaned securities.
Such collateral will be cash, letters of credit, or debt securities issued or guaranteed by the U.S. government or any of its agencies.
Each Fund may lend portfolio securities to the extent of one-third of its total assets. The Fund will loan its securities only to parties
that Invesco has determined are in good standing and when, in Invesco’s judgment, the potential income earned would justify the
risks.
Although
voting rights may pass with the lending of portfolio securities, a Fund will be entitled to call loaned
securities, or otherwise obtain rights to vote or consent, when deemed necessary by Invesco with respect to a material event affecting
securities on loan. The Fund would receive income in lieu of dividends on loaned securities and may, at the same time, generate income
on the loan collateral or on the investment of any cash collateral.
If
the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons,
a Fund could experience delays and costs in recovering securities loaned or gaining access to the collateral. If the Fund is not able
to recover the securities loaned, the Fund may sell the collateral and purchase a replacement security in the market. Lending securities
entails a risk of loss to the Fund if and to the extent that the market value of the loaned securities increases and the collateral is
not increased accordingly.
Any
cash received as collateral for loaned securities will be invested, in accordance with a Fund’s investment
guidelines, in short-term money market instruments , affiliated unregistered investment companies that are compliant with Rule 2a-7
or Affiliated Money Market Funds. Investing this cash subjects that investment to market appreciation or depreciation. For purposes of
determining whether a Fund is complying with its investment policies, strategies and restrictions, the Fund will consider the loaned securities
as assets
57
of
the Fund, but will not consider any collateral received as a Fund asset. The Fund will bear any loss on the investment
of cash collateral.
For
a discussion of tax considerations relating to lending portfolio securities, see “Dividends, Distributions and
Tax Matters — Tax Matters — Tax Treatment of Portfolio Transactions — Securities lending.”
Repurchase
Agreements. Each Fund may engage in repurchase agreement transactions
involving the types of securities in which it is permitted to invest. Repurchase agreements are agreements under which a Fund purchases
a security from a broker-dealer or bank that agrees to repurchase that security at a mutually agreed upon time and price (which is higher
than the purchase price), thereby resulting in a yield to the Fund
during a Fund’s holding period. The Fund may enter into
a “continuing contract” or “open” repurchase agreement under which the seller is under a continuing obligation
to repurchase the underlying securities from the Fund on demand and the effective interest rate is negotiated on a daily basis. Repurchase
agreements may be viewed as loans made by a Fund which are collateralized by the securities subject to repurchase.
In
any repurchase agreement, the securities that are subject to the
transaction may be obligations issued by the U.S. government or its agencies or instrumentalities. The Funds may also engage in repurchase
agreements collateralized by non-government securities that are rated investment grade or below investment grade by the requisite NRSROs
or unrated securities of comparable quality, loan participations, and equities.
If
the seller of a repurchase agreement fails to repurchase the security in accordance with the terms of the agreement,
a Fund might incur expenses in enforcing its rights, and could experience a loss on the sale of the security subject to the repurchase
agreement to the extent that the sale proceeds including accrued interest are less than the resale price provided in the repurchase agreement,
including interest. In addition, although the Bankruptcy Code and other insolvency laws may provide certain protections for some types
of repurchase agreements, if the seller of a repurchase agreement should be involved in bankruptcy or insolvency proceedings, a Fund may
incur delay and costs in selling the underlying security or may suffer a loss of principal and interest if the value of the underlying
security declines or the Fund may be deemed to be an unsecured creditor and be required to return the securities to the seller.
A
Fund may enter into repurchase agreements that involve securities that may be subject to a court-ordered
or other “stay” in the event of the seller’s bankruptcy or insolvency. A “stay” will prevent a Fund
from selling the securities it holds under a repurchase agreement until permitted by a court or other authority. In these situations a
Fund may be subject to greater risk that the value of the securities may decline before they are sold, and that a Fund may experience
a loss.
The
securities underlying a repurchase agreement will be marked-to-market every business day,
and if
the value of the securities falls below a specified percentage
of the repurchase price (typically 102%), the counterparty will be required to deliver additional collateral to a Fund in the form of
cash or additional securities. Custody of the securities will be maintained by a Fund’s custodian or sub-custodian for the duration
of the agreement.
The
Funds may invest their cash balances in joint accounts with other Invesco Funds for the purpose of investing
in repurchase agreements with maturities not to exceed 60 days, and in certain other money market instruments with remaining maturities
not to exceed 90 days. Repurchase agreements may be considered loans by a Fund under the 1940 Act.
Restricted
and Illiquid Investments. The Funds may not acquire any illiquid
investment if, immediately after the acquisition, the Fund would have invested more than 15% of its net assets in illiquid investments.
For
purposes of the above 15% limitation, an illiquid investment means
any investment that the Fund reasonably expects cannot 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, as determined pursuant to the 1940 Act and
applicable rules and regulations thereunder. Illiquid investments may include a wide variety of investments, such as, for example:
(1) repurchase agreements maturing in more than seven days (unless the agreements have demand/redemption features); (2) OTC options contracts
and certain other derivatives (including certain swap agreements); (3) fixed time deposits that are not subject to prepayment or
58
that
provide for withdrawal penalties upon prepayment (other than overnight deposits); (4) loan interests and other
direct debt instruments; (5) municipal lease obligations; (6) commercial paper issued pursuant to Section 4(2) of the 1933 Act; and (7)
securities that are unregistered, that can be sold to qualified institutional buyers in accordance with Rule 144A under the 1933 Act,
or that are exempt from registration under the 1933 Act or otherwise restricted under the federal securities laws, including private placement
securities sold pursuant to Regulation S.
Limitations
on the resale of restricted investments may have an adverse effect on their marketability, which
may prevent a Fund from disposing of them promptly at reasonable prices. The Fund may have to bear the expense of registering such securities
for resale, and the risk of substantial delays in effecting such registrations. The Fund’s difficulty valuing and selling restricted
securities or illiquid investments may result in a loss or be costly to the Fund.
If
a substantial market develops for a restricted security or illiquid investment held by a Fund, it may be treated
as a liquid investment, in accordance with procedures and guidelines adopted by the Board on behalf of the Funds.
Rule
144A Securities. Rule 144A securities are securities which, while
privately placed, are eligible for purchase and resale pursuant to Rule 144A under the 1933 Act. This Rule permits certain qualified institutional
buyers, such as the Funds, to trade in privately placed securities even though such securities are not registered under the 1933 Act.
Pursuant to Rule 22e-4 under the 1940 Act, a Fund will consider whether securities purchased under Rule 144A are illiquid and thus subject
to the Fund’s restriction on illiquid investments. The determination of whether a Rule 144A security is liquid or illiquid will
take into account relevant market trading, and investment-specific considerations consistent with applicable SEC guidance. Additional
factors that may be considered include the (i) frequency of trades and quotes; (ii) number of dealers and potential purchasers; (iii)
dealer undertakings to make a market; and (iv) nature of the security and of market place trades (for example, the time needed to dispose
of the security, the method of soliciting offers and the mechanics of transfer). Investing in Rule 144A securities could increase the
amount of a Fund’s illiquid investments if qualified institutional buyers are unwilling to purchase such securities.
Reverse
Repurchase Agreements. Reverse
repurchase agreements are agreements that involve the sale of securities held by a Fund to financial institutions such as banks and broker-dealers,
with an agreement that the Fund will repurchase the securities at an agreed upon price and date or upon demand. During the reverse repurchase
agreement period, the Fund continues to receive interest and principal payments on the securities sold, but pays interest to the other
party on the proceeds received. The Fund may employ reverse repurchase agreements (i) for temporary emergency purposes, such as to meet
unanticipated net redemptions so as to avoid liquidating other portfolio securities during unfavorable market conditions; (ii) to cover
short-term cash requirements resulting from the timing of trade settlements; or (iii) to take advantage of market situations where the
interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction.
Reverse
repurchase agreements are a form of leverage and involve the risk that the market value of securities
to be repurchased by the Fund may decline below the price at which the Fund is obligated to repurchase the securities, resulting in a
requirement for the Fund to deliver margin to the other party in the amount of the related shortfall, or that the other party may default
on its obligation, so that the Fund is delayed or prevented from completing the transaction. Leverage may make the Fund’s returns
more volatile and increase the risk of loss. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy
or becomes insolvent, a Fund’s use of the proceeds from the sale of the securities may be restricted pending a determination by
the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities.
Mortgage
Dollar Rolls. A
mortgage dollar roll (a dollar roll) is
a type of transaction that involves the sale by a Fund of a mortgage-backed security to a financial institution such as a bank or broker
dealer, with an agreement that the Fund will repurchase a substantially similar (i.e., same type, coupon and maturity) security at an
agreed upon price and date. The mortgage securities that are purchased will bear the same interest rate as those sold, but will generally
be collateralized by different pools of mortgages with different prepayment
59
histories.
During the period between the sale and repurchase, a Fund will not be entitled to receive interest or principal
payments on the securities sold but is compensated for the difference between the current sales price and the forward price for the future
purchase. The Fund typically enters into a dollar roll transaction to enhance the Fund’s return either on an income or total return
basis or to manage pre-payment risk.
Dollar
roll transactions involve the risk that the market value of the securities retained by a Fund may decline
below the price of the securities that the Fund has sold but is obligated to repurchase under the agreement. In the event the buyer of
securities under a dollar roll transaction files for bankruptcy or becomes insolvent, a Fund’s use of the proceeds from the sale
of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s
obligation to repurchase the securities.
Unless
the benefits of the sale exceed the income, capital appreciation or gains on the securities sold as part
of the dollar roll, the investment performance of a Fund will be less than what the performance would have been without the use of dollar
rolls. The benefits of dollar rolls may depend upon the Adviser or Sub-Adviser’s ability to predict mortgage repayments and interest
rates. There is no assurance that dollar rolls can be successfully employed.
Standby
Commitments. Certain Funds may acquire securities that are subject
to standby commitments from banks or other municipal securities dealers. Under a standby commitment a bank or dealer would agree to purchase,
at the Fund’s option, specified securities at a specified price. Standby commitments generally increase the cost of the acquisition
of the underlying security, thereby reducing the yield. Standby commitments depend upon the issuer’s ability to fulfill its obligation
upon demand. Although no definitive creditworthiness criteria are used for this purpose, Invesco reviews the creditworthiness of the banks
and other municipal securities dealers from which the Funds obtain standby commitments in order to evaluate those risks.
Contracts
for Difference. A contract for difference (CFD) is a contract between
two parties, buyer and seller, stipulating that the seller will pay to the buyer the difference between the nominal value of the underlying
stock, stock basket or index at the opening of the contract and the stock’s, stock basket’s or index’s value at the
close of the contract. The size of the contract and the contract’s expiration date are typically negotiated by the parties to the
CFD transaction. CFDs enable a Fund to take long positions on an underlying stock, stock basket or index and thus potentially capture
gains on movements in the share prices of the stock, stock basket or index without the need to own the underlying stock, stock basket
or index. By entering into a CFD transaction, a Fund could incur losses because it would face many of the same types of risks as owning
the underlying equity security directly. For example, a Fund might buy a position in a CFD and the contract value at the close of the
transaction may be greater than the contract value at the opening of the transaction. This may be due to, among other factors, an increase
in the market value of the underlying equity security. In such a situation, a Fund would have to pay the difference in value of the contract
to the seller of the CFD. CFDs also carry counterparty risk, i.e., the risk that the counterparty to the CFD transaction may be unable
or unwilling to make payments or to otherwise honor its financial obligations under the terms of the contract. If the counterparty were
to do so, the value of the contract, and of a Fund’s shares, may be reduced.
Entry
into a CFD transaction may, in certain circumstances, require the payment of an initial margin, and adverse
market movements against the underlying stock may require the buyer to make additional margin payments. CFDs may be considered illiquid
by the SEC staff and subject to the limitations on illiquid investments. To the extent that there is an imperfect correlation between
the return on a Fund’s obligation to its counterparty under the CFD and the return on related assets in its portfolio, the CFD
transaction may increase such Fund’s financial risk. A Fund will not enter into a CFD transaction that is inconsistent with its
investment objective, policies and strategies.
Derivatives
A
derivative is a financial instrument whose value is dependent upon the value of other assets, rates or indices,
referred to as “underlying reference assets.” These underlying reference assets may include, among others commodities, stocks,
bonds, interest rates, currency exchange rates or related indices. Derivatives
60
include,
among others, swaps, options, futures and forward foreign currency contracts. Some derivatives, such
as futures and certain options, are traded on U.S. commodity and securities exchanges, while other derivatives, such as many types of
swap agreements, are privately negotiated and entered into in the OTC market. In addition, the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 (the Dodd-Frank Act) and implementing rules require certain types of swaps to be traded on public execution facilities
and centrally cleared.
Derivatives
may be used for “hedging,” which means that they may be used when the portfolio managers seek
to protect the Fund’s investments from a decline in value, which could result from changes in interest rates, market prices, currency
fluctuations and other market factors. Derivatives may also be used when the portfolio managers seek to increase liquidity, implement
a tax or cash management strategy, invest in a particular stock, bond or segment of the market in a more efficient or less expensive way,
modify the characteristics of the Fund’s portfolio investments, for example, duration, and/or to enhance return. However derivatives
are used, their successful use is not assured and will depend upon, among other factors, the portfolio managers’ ability to predict
and understand relevant market movements.
Certain
derivatives involve leverage, that is, the amount invested may be smaller than the full economic exposure of the derivative instrument
and the Fund could lose more than it invested. The leverage involved in these derivative transactions may result in the Fund’s
net asset value being more sensitive to changes in the value of its investments.
Commodity
Exchange Act (CEA) Regulation and Exclusions:
For
Invesco Active Allocation Fund, Invesco Select Risk: Conservative Investor Fund, Invesco Select Risk:
Growth Investor Fund, Invesco Select Risk: High Growth Investor Fund, Invesco Select Risk: Moderate Investor Fund, and Invesco Select
Risk: Moderately Conservative Investor Fund:
The
Adviser is registered as a “commodity pool operator” (CPO) under the CEA and the rules of the Commodity
Futures Trading Commission (CFTC) and is subject to CFTC regulation with respect to the Funds. The CFTC has recently adopted rules regarding
the disclosure, reporting and recordkeeping requirements that apply with respect to the Funds as a result of Invesco's registration as
a CPO. Generally, these rules allow for substituted compliance with CFTC disclosure and shareholder reporting requirements, based on Invesco's
compliance with comparable SEC requirements. This means that for most of the CFTC's disclosure and shareholder reporting requirements
applicable to Invesco as the Funds' CPO, Invesco's compliance with SEC disclosure and shareholder reporting requirements will be deemed
to fulfill Invesco's CFTC compliance obligations. However, as a result of CFTC regulation with respect to the Funds, the Funds may incur
additional compliance and other expenses. The Adviser is also registered as a “commodity trading advisor” (CTA) but, with
respect to the Funds, relies on an exemption from CTA regulation available for a CTA that also serves as a Fund's CPO.
For
Invesco Convertible Securities Fund, Invesco Income Advantage International Fund, Invesco Income Allocation
Fund, Invesco International Diversified Fund, Invesco Main Street Mid Cap Fund, Invesco Main Street Small Cap Fund, Invesco Quality Income
Fund, and Invesco Small Cap Growth Fund:
With
respect to the Funds, Invesco has claimed an exclusion from the definition of CPO under the CEA and
the rules of the CFTC and, therefore, is not subject to CFTC registration or regulation as a CPO. In addition, Invesco is relying upon
a related exclusion from the definition of CTA under the CEA and the rules of the CFTC with respect to the Funds.
The
terms of the CPO exclusion require the Funds, among other things, to adhere to certain limits on their investments
in “commodity interests.” Commodity interests include commodity futures, commodity options and swaps, which in turn include
non-deliverable forwards, as further described below. Because Invesco and the Funds intend to comply with the terms of the CPO exclusion,
the Funds may, in the future, need to adjust their investment strategies, consistent with their investment objectives, to limit their
investments in these types of instruments. The Funds are not intended as vehicles for trading in the commodity futures, commodity options
or swaps markets. The CFTC has neither reviewed nor approved Invesco’s reliance on these exclusions, or the Funds, their investment
strategies, their prospectuses or this SAI.
61
Generally,
the exclusion from CPO regulation on which Invesco relies requires the Funds to meet one of the
following tests for their commodity interest positions, other than positions entered into for bona fide hedging purposes (as defined in
the rules of the CFTC): either (1) the aggregate initial margin and premiums required to establish the Fund’s positions in commodity
interests may not exceed 5% of the liquidation value of the Fund’s portfolio (after taking into account unrealized profits and
unrealized losses on any such positions); or (2) the aggregate net notional value of each Fund’s commodity interest positions,
determined at the time the most recent such position was established, may not exceed 100% of the liquidation value of the Fund’s
portfolio (after taking into account unrealized profits and unrealized losses on any such positions). In addition to meeting one of these
trading limitations, each Fund may not market itself as a commodity pool or otherwise as a vehicle for trading in the commodity futures,
commodity options or swaps markets. If, in the future, a Fund can no longer satisfy these requirements, Invesco would withdraw its notice
claiming an exclusion from the definition of a CPO, and Invesco would be subject to registration and regulation as a CPO with respect
to the Fund, in accordance with the CFTC rules that allow for substituted compliance with CFTC disclosure and shareholder reporting requirements
based on Invesco’s compliance with comparable SEC requirements. However, as a result of CFTC regulation with respect to the Fund,
a Fund may incur additional compliance and other expenses.
General
risks associated with derivatives:
The
use by the Funds of derivatives may involve certain risks, as described below.
Counterparty
Risk: The risk that a counterparty under a derivatives agreement
will not live up to its obligations, including because of the counterparty’s bankruptcy or insolvency. Certain agreements may not
contemplate delivery of collateral to support fully a counterparty’s contractual obligation; therefore, the Fund might need to
rely solely on contractual remedies to satisfy the counterparty’s full obligation. As with any contractual remedy, there is no
guarantee that the Fund will be successful in pursuing such remedies, particularly in the event of the counterparty’s bankruptcy
or insolvency. Many derivative trading agreements,
such as an ISDA Master Agreement governing OTC swaps, provide for
netting of derivatives transactions governed by the agreement in the event of a default by either counterparty, pursuant to which the
Fund’s and the counterparty’s obligations under the relevant transactions can be netted and set-off against each other,
in which case a Fund’s obligation or right will be the net amount owed to or by the counterparty. Netting agreements are intended
to function as a counterparty credit risk mitigant, but in the case of a bankruptcy or insolvency of the relevant counterparty, are subject
to the risk that the insolvency regime applicable to the counterparty might not recognize the enforceability of the contractual netting
provisions. The Fund will not enter into a derivative transaction with any counterparty that Invesco and/or the Sub-Advisers believe does
not have the financial resources to honor its obligations under the transaction. Invesco monitors the financial stability of counterparties.
Where the obligations of the counterparty are guaranteed, Invesco monitors the financial stability of the guarantor and the counterparty.
If a counterparty’s creditworthiness declines, the value of the derivative would also likely decline, potentially resulting in
losses to the Fund.
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. Leverage may cause the Fund to be more volatile because it may exaggerate the effect of any
increase or decrease in the value of the Fund’s portfolio securities. The use of some derivatives may result in economic leverage,
which does not result in the possibility of the Fund incurring obligations beyond its initial investment, but that nonetheless permits
the Fund to gain exposure that is greater than would be the case in an unlevered instrument.
Liquidity
Risk: The risk that a particular derivative is difficult to sell
or liquidate. If a derivative transaction is particularly large or if the relevant market is illiquid, it may not be possible to initiate
a transaction or liquidate a position at an advantageous time or price, which may result in significant losses to the Fund.
Pricing
Risk: The risk that the value of a particular derivative does not
move in tandem or as otherwise expected relative to the corresponding underlying instruments.
62
Special
Regulatory Risks of Derivatives: The regulation of derivatives
is a rapidly changing area of law and is subject to modification by government and judicial action. In addition, the SEC, CFTC and the
exchanges are authorized to take extraordinary actions in the event of a market emergency, including, for example, the implementation
or reduction of speculative position limits, the implementation of higher margin requirements, the establishment of daily price limits
and the suspension of trading.
It
is not possible to predict fully the effects of current or future regulation. However, it is possible that developments
in government regulation of various types of derivative instruments, such as speculative position limits on certain types of derivatives,
or limits or restrictions on the counterparties with which the Fund engages in derivative transactions, may limit or prevent the Fund
from using or limit the Fund’s use of these instruments effectively as a part of its investment strategy, and could adversely affect
the Fund’s ability to achieve its investment objective. Invesco will continue to monitor developments in the area, particularly
to the extent regulatory changes affect the Fund’s ability to enter into desired swap agreements. New requirements, even if not
directly applicable to the Fund, may increase the cost of the Fund’s investments and cost of doing business.
Tax
Risks: For a discussion of the tax considerations relating to derivative
transactions, see “Dividends, Distributions and Tax Matters — Tax Matters — Tax Treatment of Portfolio Transactions.”
General
risks of hedging strategies using derivatives:
The
use by a Fund of hedging strategies involves special considerations and risks, as described below.
Successful
use of hedging transactions depends upon Invesco’s and the Sub-Advisers’ ability to predict correctly
the direction of changes in the value of the applicable markets and securities, contracts and/or currencies. While Invesco and the Sub-Advisers
are experienced in the use of derivatives for hedging, there can be no assurance that any particular hedging strategy will succeed.
In
a hedging transaction, there might be imperfect correlation, or even no correlation, between the price movements
of an instrument used for hedging and the price movements of the investments being hedged. Such a lack of correlation might occur due
to factors unrelated to the value of the investments being hedged, such as changing interest rates, market liquidity, and speculative
or other pressures on the markets in which the hedging instrument is traded.
Hedging
strategies, if successful, can reduce risk of loss by wholly or partially offsetting the negative effect
of unfavorable price movements in the investments being hedged. However, hedging strategies can also reduce opportunity for gain by offsetting
the positive effect of favorable price movements in the hedged investments. Investors should bear in mind that a Fund is not obligated
to actively engage in hedging. For example, a Fund may not have attempted to hedge its exposure to a particular foreign currency at a
time when doing so might have avoided a loss.
Types
of derivatives:
Swaps.
Each Fund may engage in certain strategies involving swaps to attempt to manage the risk of its
investments or, in certain circumstances, for investment (i.e., as a substitute for investing
in securities). Generally, swap agreements are contracts between a Fund and another party (the counterparty) involving the exchange of
payments on specified terms over periods ranging from a few days to multiple years. A swap agreement may be negotiated bilaterally and
traded OTC between the two parties (for an uncleared swap) or, in some instances, must be transacted through a futures commission merchant
(FCM) and cleared through a clearinghouse that serves as a central counterparty (for a cleared swap). In a basic swap transaction, the
Fund agrees with its counterparty to exchange the returns (or differentials in returns) and/or cash flows earned or realized on a particular
asset such as an equity or debt security, commodity, currency, interest rate or index, calculated with respect to a “notional amount.”
The notional amount is the set amount selected by the parties to use as the basis on which to calculate the obligations that the parties
to a swap agreement have agreed to exchange. The parties typically do not exchange the notional amount. Instead, they agree to exchange
the returns that would be earned or realized if the notional amount were invested in given investments or at given interest rates. Examples
of returns that may be exchanged in a swap agreement are
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those
of a particular security, a particular fixed or variable interest rate, a particular foreign currency, or a “basket”
of securities representing a particular index. Swap agreements can also be based on credit and other events. In some cases, such as cross
currency swaps, the swap agreement may require delivery (exchange) of the entire notional value of one designated currency for another
designated currency.
A
Fund will typically only enter into swap agreements with counterparties who use standard International Swap
and Dealers Association, Inc.
(“ISDA”) contract documentation. ISDA establishes industry standards for the documentation of swap agreements. Virtually
all principal swap participants use ISDA documentation because it has an established set of definitions, contract terms and counterparty
obligations, including provisions for master netting agreements. 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. Additionally, ISDA master agreements include credit related contingent features which allow Counterparties
to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline
by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment
of any net liability owed to the counterparty.
Comprehensive
swaps regulation. The Dodd-Frank Act and analogous international
laws enacted after the financial crisis imposed comprehensive regulatory requirements on swaps and swap market participants. The U.S.
regulatory framework includes: (1) registration and regulation of swap dealers and major swap participants; (2) requiring central clearing
and electronic execution of standardized swaps on swap execution facilities; (3) imposing margin requirements on uncleared swap transactions;
(4) regulating and monitoring swap transactions through position limits and large trader reporting requirements; and (5) imposing record
keeping and centralized and public reporting requirements, on an anonymous basis, for most swaps. The CFTC is responsible for the regulation
of most swaps. The SEC has jurisdiction over a small segment of the market referred to as “security-based swaps,” which
includes swaps on single securities or narrow-based indices of securities and single name credit default swaps.
Uncleared
swaps. In an uncleared swap, the swap counterparty is typically
a brokerage firm, bank or other financial institution. In the event that one party to the swap transaction defaults and the transaction
is terminated prior to its scheduled termination date, one of the parties may be required to make an early termination payment to the
other. An early termination payment may be payable by either the defaulting party or the non-defaulting party, under certain circumstances,
depending upon which of them is “in-the-money” with respect to the swap at the time of its termination. Early termination
payments may be calculated in various ways, but generally represent the amount that the “in-the-money” party would have
to pay to replace the swap as of the date of its termination.
During
the term of an uncleared swap, a Fund will be required to pledge to the swap counterparty, from time
to time, an amount of cash and/or other assets equal to the total net amount (if any) that would be payable by the Fund to the counterparty
if all outstanding swaps between the parties were terminated on the date in question, including any early termination payments (variation
margin). Periodically, changes in the amount pledged are made to recognize changes in value of the swap contract resulting from, among
other things market
value changes in the underlying investment referenced
in the swap. Likewise, the counterparty will be required to pledge cash or other assets to cover its obligations to a Fund. However, the
amount pledged will not always be equal to or more than the amount due to the other party. Therefore, if a counterparty defaults in its
obligations to a Fund, the amount pledged by the counterparty and available to the Fund may not be sufficient to cover all the amounts
due to the Fund and the Fund may sustain a loss.
Regulations
requiring initial margin to be posted by certain market participants
for uncleared swaps have been adopted and are being phased in over time. When these rules take effect with respect to the Funds, if a
Fund is deemed to have material swaps exposure (generally, an average gross notional amount of uncleared swaps and foreign currency forward
contracts at certain measurement dates exceeding $8 billion), it will under these regulations be required to post initial margin in addition
to variation margin.
Uncleared
swaps are not traded on exchanges. As a result, swap participants may not be as protected as participants
on organized exchanges. Performance of a swap agreement is the responsibility only of the swap
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counterparty
and not of any exchange or clearinghouse. As a result, a Fund is subject to the risk that a counterparty
will be unable or will refuse to perform under such agreement, including because of the counterparty’s bankruptcy or insolvency.
The Fund risks the loss of the accrued but unpaid amounts under a swap agreement, which could be substantial, in the event of a default,
insolvency or bankruptcy by a swap counterparty. In such an event, the Fund will have contractual remedies pursuant to the swap agreement,
but bankruptcy and insolvency laws could affect the Fund’s rights as a creditor. If the counterparty’s creditworthiness
declines, the value of a swap agreement would likely decline, potentially resulting in losses.
Cleared
Swaps. Certain standardized swaps are subject to mandatory central
clearing and trading on
execution facilities. The
Dodd-Frank Act and analogous international laws will ultimately require the clearing and trading on execution facilities of many swaps.
To date, the CFTC has designated only certain of the most common credit default index swaps and certain interest rate swaps as subject
to mandatory clearing and certain public execution facilities have made these swaps available to trade, but it is expected that additional
categories of swaps will in the future be designated as subject to mandatory clearing and trade execution requirements.
In
a cleared swap, a Fund’s ultimate counterparty is a central clearinghouse rather than a brokerage firm, bank
or other financial institution. Cleared swaps are submitted for clearing through each party’s FCM, which must be a member of the
clearinghouse that serves as the central counterparty.
When
a Fund enters into a cleared swap, it must deliver to the clearinghouse
(via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the clearinghouse,
and are typically calculated as an amount based on the volatility in market value of the cleared swap over a fixed period, but an FCM
may require additional initial margin above the amount required by the clearinghouse. During the term of the swap agreement, “variation
margin” may also be required to be paid by the Fund or may be received by the Fund. If the value of the Fund’s cleared swap
declines, the Fund will be required to make additional variation margin payments to the FCM to settle the change in value. Conversely,
if the market value of the Fund’s position increases, the FCM will post additional variation margin to the Fund’s account.
At the conclusion of the term of the swap agreement, if the Fund has a loss equal to or greater than the margin amount, the margin amount
is paid to the FCM along with any loss in excess of the margin amount. If the Fund has a loss of less than the margin amount, the excess
margin is returned to the Fund. If the Fund has a gain, the full margin amount and the amount of the gain are paid to the Fund.
Central
clearing is designed to reduce counterparty credit risk and increase liquidity compared to uncleared
swaps because central clearing interposes the central clearinghouse as the counterparty to each participant’s swap, but it does
not eliminate those risks completely. There is also a risk of loss by a Fund of the initial and variation margin deposits in the event
of bankruptcy or insolvency of the FCM through which the Fund holds an open position, or the clearinghouse in a swap contract. The assets
of a Fund may not be fully protected in the event of the bankruptcy or insolvency of the FCM or clearinghouse because the Fund might be
limited to recovering only a pro rata share of all available funds and margin segregated on behalf of an FCM’s customers. If the
FCM does not provide accurate reporting, a Fund is also subject to the risk that the FCM could use the Fund’s assets
to satisfy its own financial obligations or the payment obligations
of another customer to the clearinghouse. Credit risk of cleared swap participants is concentrated in a few clearinghouses, and the consequences
of insolvency of a clearinghouse are not clear.
With
cleared swaps, a Fund may not be able to obtain terms as favorable as it would be able to negotiate for
a bilateral, uncleared swap. In addition, an FCM may unilaterally amend the terms of its agreement with a Fund, which may include the
imposition of position limits or additional margin requirements with respect to the Fund’s investment in certain types of swaps.
Clearinghouses and FCMs can require termination of existing cleared swap transactions upon the occurrence of certain events, and can also
require increases in margin above the margin that is required at the initiation of the swap agreement.
Finally,
a Fund is subject to the risk that, after entering into a cleared swap with an executing broker, no FCM
or clearinghouse is willing or able to clear the transaction. In such an event, the Fund may be required to break the trade and make an
early termination payment to the executing broker.
65
Commonly
used swap agreements include:
Credit
Default Swaps (CDS): A CDS is an agreement between two parties
where the first party agrees to make one or more payments to the second party, while the second party assumes the risk of certain defaults,
generally a failure to pay or bankruptcy of the issuer on a referenced debt obligation. CDS transactions are typically individually negotiated
and structured. The Fund may enter into CDS to create long or short exposure to domestic or foreign corporate debt securities or sovereign
debt securities.
The
Fund may buy a CDS (buy credit protection). In this transaction the Fund makes a stream of payments
based on a fixed interest rate (the premium) over the life of the swap in exchange for a counterparty (the seller) taking on the risk
of default of a referenced debt obligation (the Reference Obligation). If a credit event occurs for the Reference Obligation, the Fund
would cease making premium payments and it would deliver defaulted bonds to the seller. In return, the seller would pay the notional value
of the Reference Obligation to the Fund. Alternatively, the two counterparties may agree to cash settlement in which the seller delivers
to the Fund (buyer) the difference between the market value and the notional value of the Reference Obligation. If no event of default
occurs, the Fund pays the fixed premium to the seller for the life of the contract, and no other exchange occurs.
Alternatively,
a Fund may sell a CDS (sell credit protection). In this transaction the Fund will receive premium
payments from the buyer in exchange for taking the risk of default of the Reference Obligation. If a credit event occurs for the Reference
Obligation, the buyer would cease to make premium payments to the Fund and deliver the Reference Obligation to the Fund. In return, the
Fund would pay the notional value of the Reference Obligation to the buyer. Alternatively, the two counterparties may agree to cash settlement
in which the Fund would pay the buyer the difference between the market value and the notional value of the Reference Obligation. If no
event of default occurs, the Fund receives the premium payments over the life of the contract, and no other exchange occurs.
Credit
Default Index Swaps (CDX): A CDX is a swap on an index of CDS.
A CDX allows an investor to manage credit risk or to take a position on a basket of credit entities (such as CDS or CMBS) in a more efficient
manner than transacting in single name CDS. If a credit event occurs in one of the underlying companies, the protection is paid out via
the delivery of the defaulted bond by the buyer of protection in return for payment of the notional value of the defaulted bond by the
seller of protection or it may be settled through a cash settlement between the two parties. The underlying company is then removed from
the index. New series of CDX are issued on a regular basis. A Commercial Mortgage-Backed Index (CMBX) is a type of CDX made up of 25 tranches
of commercial mortgage-backed securities (See “Debt Instruments — Mortgage-Backed and Asset-Backed Securities”) rather
than CDS. Unlike other CDX contracts where credit events are intended to capture an event of default, CMBX involves a pay-as-you-go (PAUG)
settlement process designed to capture non-default events that affect the cash flow of the reference obligation. PAUG involves ongoing,
two-way payments over the life of a contract between the buyer and the seller of protection and is designed to closely mirror the cash
flow of a portfolio of cash commercial mortgage-backed securities. A CDX index tranche provides access to customized risk, exposing each
investor to losses at different levels of subordination. The lowest part of the capital structure is called the “equity tranche”
as it has exposure to the first losses experienced in the basket. The mezzanine and senior tranches are higher in the capital structure
but can also be exposed to loss in value. Investments are subject to liquidity risks as well as other risks associated with investments
in credit default swaps.
Foreign
Exchange Swaps: A foreign exchange swap involves an agreement between
two parties to exchange two different currencies on a specific date at a fixed rate, and an agreement for the reverse exchange of those
two currencies at a later date and at a fixed rate. Foreign exchange swaps were exempted from the definition of “swaps”
by the U.S. Treasury and are therefore not subject to many rules under the CEA that apply to swaps, including the mandatory clearing requirement.
They are also not considered “commodity interests” for purposes of CEA Regulations and Exclusions, discussed above. However,
foreign exchange swaps nevertheless remain subject to the CFTC’s trade reporting requirements, enhanced anti-evasion authority,
and strengthened business conduct standards.
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Currency
Swaps: A currency swap is an agreement between two parties to exchange
periodic cash flows on a notional amount of two or more currencies based on the relative value differential between them. Currency swaps
typically involve the delivery of the entire notional values of the two designated currencies. In such a situation, the full notional
value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations.
The Fund may also enter into currency swaps on a net basis, which means the two different currency payment streams under the swap agreement
are converted and netted out to a single cash payment in just one of the currencies.
Because
currency control is of great importance to the issuing governments and influences economic planning
and policy, purchases and sales of currency and related instruments can be negatively affected by government exchange controls, blockages,
and manipulations or exchange restrictions imposed by governments. These actions could result in losses to a Fund if it is unable to deliver
or receive a specified currency or funds in settlement of obligations, including swap transaction obligations. These actions could also
have an adverse effect on a Fund’s swap transactions or cause a Fund’s hedging positions to be rendered useless, resulting
in full currency exposure as well as incurring unnecessary transaction costs.
Interest
Rate Swaps: An agreement between two parties pursuant to which
the parties exchange a floating rate payment for a fixed rate payment based on a specified principal or notional amount. In other words,
Party A agrees to pay Party B a fixed interest rate multiplied by a notional amount and in return Party B agrees to pay Party A a variable
interest rate multiplied by the same notional amount.
Inflation
Swaps: Inflation swap agreements are contracts in which one party
agrees to pay the cumulative percentage increase in a price index, such as the Consumer Price Index, over the term of the swap (with some
lag on the referenced inflation index), and the other party pays a compounded fixed rate. Inflation swap agreements may be used to protect
the net asset value of a Fund against an unexpected change in the rate of inflation measured by an inflation index. The value of inflation
swap agreements is expected to change in response to changes in real interest rates. Real interest rates are tied to the relationship
between nominal interest rates and the rate of inflation.
Total
Return Swaps: An agreement in which one party makes payments based
on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes
both the income it generates and any capital gains.
Swaptions:
An option on a swap agreement, also called a “swaption,” is an option that gives the buyer the right, but not the obligation,
to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to
receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay 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.
Swaptions
are considered to be swaps for purposes of CFTC regulation. Although they are currently traded
OTC, the CFTC may in the future designate certain options on swaps as subject to mandatory clearing and exchange trading.
Commodity
Swaps: A commodity swap agreement is a contract in which one party
agrees to make periodic payments to another party based on the change in market value of a commodity-based underlying instrument (such
as a specific commodity or commodity index) in return for periodic payments based on a fixed or variable interest rate or the total return
from another commodity-based underlying instrument. In a total return commodity swap, a Fund receives the price appreciation of a commodity
index, a portion of a commodity index or a single commodity in exchange for paying an agreed-upon fee.
Volatility
and Variance Swaps: A volatility swap involves an exchange between
a Fund and a counterparty of periodic payments based on the measured volatility of an underlying security, currency, commodity, interest
rate, index or other reference asset over a specified time frame. Depending on the structure of the swap, either the Fund’s or
the counterparty’s payment obligation will typically be based on the realized volatility of the reference asset as measured by
changes in its price or level over a specified time period while the other party’s payment obligation will be based on a specified
rate representing expected volatility for the reference
67
asset
at the time the swap is executed, or the measured volatility of a different reference asset over a specified
time period. The Fund will typically make or lose money on a volatility swap depending on the magnitude of the reference asset’s
volatility, or size of the movements in its price, over a specified time period, rather than general increases or decreases in the price
of the reference asset. Volatility swaps are often used to speculate on future volatility levels, to trade the spread between realized
and expected volatility, or to decrease the volatility exposure of other investments held by the Fund. Variance swaps are similar to volatility
swaps except payments are based on the difference between the implied and measured volatility mathematically squared.
Options.
Each Fund may engage in certain strategies involving options to attempt to manage the risk of its investments or in certain circumstances,
for investment purposes (e.g., as a substitute for investing in securities), to speculate on future volatility levels or to decrease the volatility exposure of other
investments held by the Fund.
An
option is a contract that gives the purchaser of the option, in return for the premium paid, the right, but not
the obligation, to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option at the exercise price during
the term of the option (for American style options) or on a specified date (for European style options), the security, currency or other
instrument underlying the option (or delivery of a cash settlement price, in the case of certain options, such as an index option and
other cash-settled options). An option on a CDS or a futures contract (described below) gives the purchaser the right, but not the obligation,
to enter into a CDS or assume a position in a futures contract. Option transactions present the possibility of large amounts of exposure
(or leverage), which may result in a Fund’s net asset value being more sensitive to changes in the value of the option.
The
value of an option position will reflect, among other things, the current market value of the underlying investment,
the time remaining until expiration, the relationship of the exercise price to the market price of the underlying investment, the price
volatility of the underlying investment and general market and interest rate conditions.
A
Fund will not write (sell) options if, immediately after such sale, the aggregate value of securities or obligations
underlying the outstanding options would exceed 20% of the Fund’s total assets. A Fund will not purchase options if, immediately
after such purchase, the aggregate premiums paid for outstanding options would exceed 5% of the Fund’s total assets.
The
Fund may effectively terminate its right or obligation under an option by entering into an offsetting closing
transaction. For example, a Fund may terminate its obligation under a call or put option that it had written by purchasing an identical
call or put option, which is known as a closing purchase transaction. Conversely, a Fund may terminate a position in a put or call option
it had purchased by writing an identical put or call option, which is known as a closing sale transaction. Closing transactions permit
a Fund to realize profits or limit losses on an option position prior to its exercise or expiration.
Options
may be either listed on an exchange or traded in OTC markets. Listed options are tri-party contracts
(i.e., performance of the obligations of the purchaser and seller are guaranteed by the exchange or clearing corporation) and have standardized
strike prices and expiration dates. OTC options are two-party contracts with negotiated strike prices and expiration dates and differ
from exchange-traded options in that OTC options are transacted with dealers directly and not through a clearing corporation (which guarantees
performance). In the case of OTC options, there can be no assurance that a liquid secondary market will exist for any particular option
at any specific time; therefore the Fund may be required to treat some or all OTC options as illiquid investments. Although a Fund will
enter into OTC options only with dealers that are expected to be capable of entering into closing transactions with it, there is no assurance
that the Fund will in fact be able to close out an OTC option position at a favorable price prior to exercise or expiration. In the event
of insolvency of the dealer, a Fund might be unable to close out an OTC option position at any time prior to its expiration.
Types
of Options:
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Put
Options on Securities. A put option gives the purchaser the right
to sell, to the writer, the underlying security, contract or foreign currency at the stated exercise price at any time prior to the expiration
date of the option (for American style options) or on a specified date (for European style options), regardless of the market price or
exchange rate of the security, contract or foreign currency, as the case may be, at the time of exercise. If the purchaser exercises the
put option, the writer of a put option is obligated to buy the underlying security, contract or foreign currency for the exercise price.
Call
Options on Securities. A call option gives the purchaser the right
to buy, from the writer, the underlying security, contract or foreign currency at the stated exercise price at any time prior to the expiration
of the option (for American style options) or on a specified date (for European style options), regardless of the market price or exchange
rate of the security, contract or foreign currency, as the case may be, at the time of exercise. If the purchaser exercises the call option,
the writer of a call option is obligated to sell to and deliver the underlying security, contract or foreign currency to the purchaser
of the call option for the exercise price.
Index
Options. Index options (or options on securities indices) give
the option buyer the right to receive, upon exercise, a cash settlement amount instead of the securities included in the relevant index,
if the closing level of the securities index upon which the option is based is greater than, in the case of a call, or less than, in the
case of a put, the exercise price of the option. The amount of cash is equal to the difference between the closing price of the index
on the relevant option expiration date and the exercise price of the call or put times a specified multiple (the multiplier), which determines
the total dollar value for each point of such difference.
The
risks of investment in index options may be greater than options on securities,
especially if a Fund writes index call options. Because index options are settled in cash, when a Fund writes a call on an index it cannot
provide in advance for its potential settlement obligations by acquiring and holding the underlying securities. The Fund can offset some
of the risk of writing an index call option by holding a diversified portfolio of securities similar to those included in the underlying
index. However, the Fund cannot, as a practical matter, acquire and hold a portfolio containing exactly the same securities in the index
and, as a result, bears the risk that the value of the securities held will not be perfectly correlated with the value of the index.
CDS
Options. A CDS option transaction gives the buyer the right, but
not the obligation, to enter into a CDS at a specified future date and under specified terms in exchange for paying a market based purchase
price or premium. The writer of the option bears the risk of any unfavorable move in the value of the CDS relative to the market value
on the exercise date, while the purchaser may allow the option to expire unexercised.
Option
Techniques:
Writing
Options. The Fund may write options to generate additional income.
As the writer of an option, the Fund may have no control over when the underlying reference asset must be sold (in the case of a call
option) or purchased (in the case of a put option), if the option was structured as an American style option, because the option purchaser
may notify the Fund of exercise at any time prior to the expiration of the option. In addition, if the option is cash-settled instead
of deliverable, the Fund is obligated to pay the option purchaser the difference between the exercise price and the value of the underlying
reference asset, instead of selling or purchasing the underlying reference asset, if the option is exercised. In general, options are
rarely exercised prior to expiration. Whether or not an option expires unexercised, the writer retains the amount of the premium.
The
Fund would write a put option at an exercise price that, reduced by the premium received on the option,
reflects the price it is willing to pay for the underlying reference asset. In return for the premium received for writing a put option,
the Fund assumes the risk that the price of the underlying reference asset will decline below the exercise price, in which case the put
option may be exercised and the Fund may suffer a loss.
In
return for the premium received for writing a call option on a reference asset, the Fund foregoes the opportunity
for profit from a price increase in the underlying reference asset above the exercise price so long as the option remains open, but retains
the risk of loss should the price of the reference asset decline.
69
If
an option that a Fund has written expires, the Fund will realize a gain in the amount of the premium; however,
such gain may be offset by a decline in the market value of the underlying reference asset, held by the Fund during the option period.
If a call option is exercised, a Fund will realize a gain or loss from the sale of the underlying reference asset, which will be increased
or offset by the premium received. The obligation imposed upon the writer of an option is terminated upon the expiration of the option,
or such earlier time at which a Fund effects a closing purchase transaction by purchasing an option (put or call as the case may be) identical
to that previously sold. However, once a Fund has received an exercise notice, it cannot effect a closing purchase transaction in order
to terminate its obligation under the option and must deliver (for a call) or purchase (for a put) the underlying reference asset at the
exercise price (if deliverable) or pay the difference between the exercise price and the value of the underlying reference asset (if cash-settled).
Purchasing
Options. The Fund may purchase a put option on an underlying reference
asset owned by the Fund in order to protect against an anticipated decline in the value of the underlying reference asset held by the
Fund; may purchase put options on underlying reference assets against which it has written other put options; or may speculate on the
value of an underlying reference asset, index or quantitative measure. The premium paid for the put option and any transaction costs would
reduce any profit realized when the underlying reference asset is delivered upon the exercise of the put option. Conversely, if the underlying
reference asset does not decline in value, the option may expire worthless and the premium paid for the protective put would be lost.
A put option may also be purchased on an investment the Fund does not own.
The
Fund may purchase a call option for the purpose of acquiring the underlying reference asset for its portfolio,
or on underlying reference assets against which it has written other call options. The Fund is not required to own the underlying reference
asset in order to purchase a call option. If the Fund does not own the underlying position, the purchase of a call option would enable
a Fund to acquire the underlying reference asset at the exercise price of the call option plus the premium paid. So long as it holds a
call option, rather than the underlying reference asset itself, the Fund is partially protected from any unexpected increase in the market
price of the underlying reference asset. If the market price does not exceed the exercise price, the Fund could purchase the underlying
reference asset on the open market and could allow the call option to expire, incurring a loss only to the extent of the premium paid
for the option.
Up
to 25% of Invesco Main Street Small Cap Fund’s and Invesco Main Street Mid Cap Fund’s total assets can
be subject to call options the Fund sells. Invesco Main Street Small Cap Fund and Invesco Main Street Mid Cap Fund can buy a put or call
option only if, after the purchase, the value of all call and put options held by the Fund will not exceed 5% of the Fund’s total
assets.
Municipal
Market Data Rate Locks. A Municipal Market Data Rate Lock (MMD
Rate Lock) permits a Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular
investment or a portion of its portfolio as a duration management technique or to protect against any increase in the price of securities
to be purchased at a later date. MMD Rate Locks may be used for hedging purposes. An MMD Rate Lock is an agreement between two parties,
a Fund and an MMD Rate Lock provider, pursuant to which the parties agree to make payments to each other on a notional amount, contingent
upon whether the Municipal Market Data AAA General Obligation Scale is above or below a specified level on the expiration date of the
contract.
MMD
Rate Locks involve the risk that municipal yields will move in the direction opposite than the direction
anticipated by a Fund. The risk of loss with respect to MMD Rate Locks is limited to the amount of payments a Fund is contractually obligated
to make. If the other party to an MMD Rate Lock defaults, a Fund's risk of loss consists of the amount of payments that the Fund contractually
is entitled to receive. If there is a default by the counterparty, a Fund may have contractual remedies pursuant to the agreements related
to the transaction, but they could be difficult to enforce.
Straddles/Spreads/Collars.
Each Fund may for hedging purposes, or for speculative purposes, enter into straddles, spreads or collars to adjust the risk and
return characteristics of the Fund’s overall position.
70
Spread
and straddle options transactions. In “spread” transactions,
a Fund buys and writes a put or buys and writes a call on the same underlying instrument with the options having different exercise prices,
expiration dates, or both. In “straddles,” a Fund purchases a put option and a call option or writes a put option and a
call option on the same instrument with the same expiration date and typically the same exercise price. When a Fund engages in spread
and straddle transactions, it seeks to profit from differences in the option premiums paid and received and in the market prices of the
related options positions when they are closed out or sold. Because these transactions require the Fund to buy and/or write more than
one option simultaneously, the Fund’s ability to enter into such transactions and to liquidate its positions when necessary or
deemed advisable may be more limited than if the Fund were to buy or sell a single option. Similarly, costs incurred by the Fund in connection
with these transactions will in many cases be greater than if the Fund were to buy or sell a single option.
Option
Collars. The Fund also may use option “collars.”
A “collar” position combines a put option purchased by the Fund (the right of the Fund to sell a specific security within
a specified period) with a call option that is written by the Fund (the right of the counterparty to buy the same security) in a single
instrument. The Fund’s right to sell the security is typically set at a price that is below the counterparty’s right to
buy the security. Thus, the combined position “collars” the performance of the underlying security, providing protection
from depreciation below the price specified in the put option, and allowing for participation in any appreciation up to the price specified
by the call option.
Rights
and Warrants. Rights are equity securities representing a preemptive
right of stockholders to purchase additional shares of a stock at the time of a new issuance, before the stock is offered to the general
public. A stockholder who purchases rights may be able to retain the same ownership percentage after the new stock offering. A right usually
enables the stockholder to purchase common stock at a price below the initial offering price. A Fund that purchases a right takes
the risk that the right might expire worthless because the market value of the common stock falls below the price fixed by the right.
A
warrant gives the holder the right to purchase securities from the issuer at a specific price within a certain
time frame and is similar to a call option. The main difference between warrants and call options is that warrants are issued by the company
that will issue the underlying security, whereas options are not issued by the company. Young, unseasoned companies often issue warrants
to finance their operations.
Invesco
Main Street Small Cap Fund®
and Invesco Main Street Mid Cap Fund®
can invest up to 5% of its total assets in rights and warrants,
not including rights and warrants the Fund acquires as part of securities units or that are attached to other securities the Fund buys.
Futures
Contracts.
A
futures contract is a standardized agreement to buy or sell a specified
amount of a specified security, currency, commodity, interest rate or index (or deliver a cash settlement price, in the case of certain
futures such as an index future, interest rate future or volatility future) for a specified price at a designated future date, time and
place. A “sale” of a futures contract means the acquisition of a contractual obligation to deliver the underlying instrument
or asset called for by the contract at a specified price on a specified date. A “purchase” of a futures contract means the
acquisition of a contractual obligation to acquire the underlying instrument or asset called for by the contract at a specified price
on a specified date. Futures contracts are generally bought and sold on futures exchanges referred to as designated contract markets and
are held through a broker, known as a futures commission merchant (FCM), that is a member of the designated contract market and its related
clearinghouse. The designated contract market sets the specifications of the relevant futures contract, including the date, time and place
of delivery or settlement of the contract and the quantity of the underlying instrument or asset per contract.
The
Fund will only enter into futures contracts that are traded (either domestically or internationally) on futures
exchanges or certain exempt markets including exempt boards of trade and electronic trading facilities; and are standardized as to maturity
date and underlying instrument or asset. Futures exchanges and trading thereon in the United States are regulated under the CEA by the
CFTC. Foreign futures exchanges or exempt markets and trading thereon are not regulated by the CFTC and may not be subject to the same
71
regulatory
controls. In addition, futures contracts that are traded on non-U.S. exchanges or exempt markets may
not be as liquid as those purchased on CFTC-designated contract markets. For a further discussion of the risks associated with investments
in foreign securities, see “Foreign Investments” above.
Brokerage
fees are incurred when a futures contract is bought or sold, and margin deposits must be maintained
at all times when a futures contract is outstanding. “Margin” for a futures contract is the amount of funds that must be
deposited by a Fund with the applicable FCM in order to initiate trading in the futures contract and maintain its open positions in futures
contract. A margin deposit made when the futures contract is entered (initial margin) is intended to ensure the Fund’s performance
under the futures contract. The initial margin required for a particular futures contract is set by the exchange on which the futures
contract is traded and may be significantly modified from time to time by the exchange or the FCM during the term of the futures contract.
Subsequent
payments, called “variation margin,” received from or paid to the FCM through which a Fund holds
the futures contract will be made on a daily basis as the futures contract price fluctuates making the futures contract more or less valuable,
a process known as marking-to-market. When the futures contract is closed out, if the Fund has a loss equal to or greater than the margin
amount, the margin amount is paid to the FCM along with any loss in excess of the margin amount. If the Fund has a loss of less than the
margin amount, the excess margin is returned to the Fund. If the Fund has a gain, the full margin amount and the amount of the gain are
paid to the Fund and the FCM pays the Fund any excess gain over the margin amount.
There
is a risk of loss by a Fund of the initial and variation margin deposits in the event of bankruptcy or
insolvency of the FCM with which the Fund has an open position in a futures contract. The assets of a Fund may not be fully protected
in the event of the bankruptcy or insolvency of the FCM or clearinghouse because the Fund might be limited to recovering only a pro rata
share of all available funds and margin segregated on behalf of an FCM’s customers. If the FCM does not provide accurate reporting,
a Fund is also subject to the risk that the FCM could use the Fund’s assets, which are held in an omnibus account with assets belonging
to the FCM’s other customers, to satisfy its own financial obligations or the payment obligations of another customer to the clearinghouse.
Closing
out an open futures contract is effected by entering into an offsetting futures contract for the same aggregate
amount of the identical underlying instrument or asset and the same delivery or settlement date. There can be no assurance, however, that
a Fund will be able to enter into an offsetting contract with respect to a particular futures contract at a particular time. If a Fund
is not able to enter into an offsetting contract, it will continue to be required to maintain the margin deposits on the futures contract.
In
addition, if a Fund were unable to liquidate a futures contract or an option on a futures contract position due
to the absence of a liquid secondary market or the imposition of price limits, it could incur substantial losses. The Fund would continue
to be subject to market risk with respect to the position. In addition, except in the case of purchased options, the Fund would continue
to be required to make daily variation margin payments.
Pursuant
to federal securities laws and regulations, a Fund's use of futures contacts may require the Fund
to set aside assets to reduce the risks associated with using futures contracts. This process is described in more detail above in the
section "Derivatives."
Types
of Futures Contracts:
Commodity
Futures: A commodity futures contract is an exchange-traded contract
to buy or sell a particular commodity at a specified price at some time in the future. Commodity futures contracts are highly volatile;
therefore, the prices of a Fund’s shares may be subject to greater volatility to the extent it invests in commodity futures.
Currency
Futures: A currency futures contract is a standardized, exchange-traded
contract to buy or sell a particular currency at a specified price at a future date (commonly three months or more). Currency futures
contracts may be highly volatile and thus result in substantial gains or losses to the Fund.
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The
Fund may either exchange the currencies specified at the maturity of a currency futures contract or, prior
to maturity, enter into a closing transaction involving the purchase or sale of an offsetting contract. The Fund may also enter into currency
futures 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. Closing
transactions with respect to currency futures contracts are usually effected with the counterparty to the original currency futures contract.
Index
Futures: An index futures contract is an exchange-traded contract
that provides for the delivery, at a designated date, time and place, of an amount of cash equal to a specified dollar amount times the
difference between the index value at the close of trading on the date specified in the contract and the price agreed upon in the futures
contract; no physical delivery of securities comprising the index is made. Index futures can be based on stock, bond or other indices.
Such indices cannot be purchased or sold directly.
Interest
Rate Futures: An interest rate futures contract is an exchange-traded
contract in which the specified underlying security is either an interest-bearing fixed income security or an inter-bank deposit. Two
examples of common interest rate futures contracts are U.S. Treasury futures and Eurodollar futures contracts. The specified security
for U.S. Treasury futures is a U.S. Treasury security. The specified security for Eurodollar futures is the London Interbank Offered Rate
(LIBOR), which is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the
London wholesale money market.
Dividend
Futures: A dividend futures contract is an exchange-traded contract
to purchase or sell an amount equal to the total dividends paid by a selected security, basket of securities or index, over a period of
time for a specified price that is based on the expected dividend payments from the selected security, basket of securities or index.
Security
Futures: A security futures contract is an exchange-traded contract
to purchase or sell, in the future, a specified quantity of a security (other than a Treasury security), or a narrow-based securities
index at a certain price.
Options
on Futures Contracts. Options on futures contracts are similar
to options on securities or currencies except that options on futures contracts give the purchaser the right, in return for the premium
paid, to assume a position in a futures contract (a long position if the option is a call and a short position if the option is a put)
at a specified exercise price at any time during the period of the option. Upon exercise of the option, the delivery of the futures contract
position by the writer of the option to the holder of the option will be accompanied by delivery of the accumulated balance in the writer’s
futures contract margin account.
Forward
Foreign Currency Contracts. Certain Funds may enter into forward
foreign currency contracts to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
Certain Funds may also enter into forward foreign currency transactions for speculative purposes, including to seek additional income
or increased returns for the Fund.
A
forward foreign currency contract is an obligation to buy or sell a particular currency in exchange for another
currency, which may be U.S. dollars, at a specified exchange rate on a future date. Forward foreign currency contracts are typically individually
negotiated and privately traded by currency traders and their customers in the interbank market. The Fund may enter into forward foreign
currency contracts with respect to a specific purchase or sale of a security, or with respect to its portfolio positions generally.
At
the maturity of a forward foreign currency contract, a Fund may either exchange the currencies specified
at the maturity of the contract or, prior to maturity, a Fund may enter into a closing transaction involving the purchase or sale of an
offsetting contract. Closing transactions with respect to forward foreign currency contracts may or may not be effected with the counterparty
to the original forward contract. The Fund may also enter into forward foreign currency contracts that do not provide for physical exchange
of the two currencies on the settlement date but instead provide for settlement 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).
73
Under
definitions adopted by the CFTC and SEC, non-deliverable forwards are considered swaps, and therefore
are included in the definition of “commodity interests.” Although non-deliverable forwards have historically been traded
in the OTC market, as swaps they may in the future be required to be centrally cleared and traded on public execution facilities. For
more information on central clearing and trading of cleared swaps, see “Swaps” and “Special Regulatory Risks of Derivatives.”
Forward foreign currency contracts that qualify as deliverable forwards are not regulated as swaps for most purposes, and are not included
in the definition of “commodity interests.” However these forwards are subject to some requirements applicable to swaps,
including reporting to swap data repositories, documentation requirements, and business conduct rules applicable to swap dealers. CFTC
regulation of forward foreign currency contracts, especially non-deliverable forwards, may restrict a Fund’s ability to use these
instruments in the manner described above or subject Invesco to CFTC registration and regulation as a CPO.
The
cost to a Fund of engaging in forward foreign currency contracts varies with factors such as the currencies
involved, the length of the contract period, differences in prevailing interest rates in the jurisdictions associated with the two currencies
and the prevailing market conditions. Because forward foreign currency contracts are usually entered into on a principal basis, no fees
or commissions are typically involved. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the
prices of the underlying securities a Fund owns or intends to acquire, but it does establish a rate of exchange in advance. While forward
foreign currency contract sales limit the risk of loss due to a decline in the value of the hedged currencies, they also limit any potential
gain that might result should the value of the currencies increase.
LIBOR
Transition Risk
A
Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (LIBOR)
as the reference or benchmark rate for variable interest rate calculations (including variable or floating rate debt securities or loans
and derivatives such as interest rate futures or swaps). LIBOR is intended to measure the rate generally at which banks can lend and borrow
from one another in the relevant currency on an unsecured basis. LIBOR was a common benchmark interest rate index used to make adjustments
to variable-rate debt instruments, to determine interest rates for a variety of financial instruments and borrowing arrangements and as
reference rate in derivative contracts. A Fund’s investments may pay interest at variable or floating rates based on LIBOR, may
be subject to interest caps or floors based on LIBOR or may otherwise reference LIBOR as a reference rate to determine payment obligations
or financing terms.
In
the years following the 2008 financial crisis, the integrity of LIBOR was increasingly questioned because
several banks contributing to its calculation were accused of rate manipulation and because of a general contraction in the unsecured
interbank lending market. As a result, regulators and financial industry working groups in several jurisdictions have worked over the
past several years to identify alternative reference rates (ARRs) to replace LIBOR and to assist with the transition to the new ARRs.
The industry working group in the United States, the Alternative Reference Rate Committee, has recommended adoption of the Secured Overnight
Financing Rate (SOFR) as a replacement for USD LIBOR. SOFR is a broad measure of the cost of overnight borrowing of cash through repurchase
agreements collateralized by U.S. Treasury securities.
In
connection with the LIBOR transition, on March 5, 2021 the UK Financial Conduct Authority (FCA), the regulator
that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January
1, 2022. Specifically, the publication of all settings of British Pound Sterling, Swiss Franc, Euro and Japanese Yen LIBOR, as well as
the 1-week and 2-month settings of U.S. Dollar (USD) LIBOR were phased out at the end of 2021. The remaining settings of USD LIBOR, which
are the most widely used in financial markets, will continue to be published until June 2023 to allow for an orderly transition away from
these rates. Additionally, key regulators have instructed banking institutions to cease entering into new contracts that reference these
remaining USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
74
There
remains uncertainty and risks relating to the continuing LIBOR transition and its effects on a Fund and
the instruments in which a Fund may invest. For example, there can be no assurance that the composition or characteristics of any ARRs
or financial instruments in which a Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence
as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators have generally prohibited
banking institutions from entering into new contracts that reference those USD LIBOR settings that continue to exist, there remains uncertainty
and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and
the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately
discontinued. While some “legacy” USD LIBOR instruments may contemplate a scenario where LIBOR is no longer available by
providing for an alternative or “fallback” rate-setting methodology, there may be significant uncertainty regarding the
effectiveness of such alternative or “fallback” methodologies to replicate USD LIBOR; other “legacy” USD LIBOR
instruments may not include such “fallback” rate-setting provisions at all. Certain legislation has been promulgated that
would replace references to USD LIBOR in certain “legacy” USD LIBOR instruments with a specified replacement rate, such
as SOFR, by operation of law; however there remains significant uncertainty regarding the effectiveness of any such legislation. As a
result, the ongoing LIBOR transition might lead to increased volatility and reduced liquidity in, or a reduction in the value of, “legacy”
USD LIBOR instruments held by a Fund; increased difficulty for borrowers associated with these instruments to refinance, the proceeds
of which are needed to repay a Fund; or diminished effectiveness of any hedging strategies that a Fund may seek to implement in connection
with these instruments. All of the foregoing may adversely affect a Fund’s performance or NAV.
Environmental,
Social and Governance (ESG) Considerations
The
ESG considerations described herein may not be used by a Fund and will vary depending on a Fund's
particular investment strategy and in accordance with what a Fund’s investment team deems relevant when making investment decisions.
The ESG considerations described herein may not be applied or evaluated with respect to each issuer or Fund investment. Further, a Fund’s
prospectus may describe additional ESG strategies and risks.
ESG
considerations, either quantitative or qualitative, may be utilized as a component of a Fund's
investment process to implement its investment strategy in pursuit of its investment objective. ESG factors may be incorporated to evaluate
an issuer, as part of risk analysis, credit analysis or in other manners. ESG factors may vary across types of investments and issuers,
and not every ESG factor may be identified or evaluated. The incorporation of ESG factors may affect a Fund’s exposure to certain
issuers or industries and may not work as intended. A Fund may underperform other funds that do not assess an issuer’s ESG factors
as part of the investment process or that use a different methodology to identify and/or incorporate ESG factors. Because ESG considerations
may be used as one part of an overall investment process, a Fund may still invest in securities of issuers that are not considered ESG-focused
or that may be viewed as having a high ESG risk profile. As investors can differ in their views regarding ESG factors, a Fund may invest
in issuers that do not reflect the views with respect to ESG of any particular investor. Information used by a Fund to evaluate such factors,
including information from reliance on third-party research and/or proprietary research, may not be readily available, complete or accurate,
and may vary across providers and issuers as ESG is not a uniformly defined characteristic, which could negatively impact a Fund’s
ability to accurately assess an issuer, which could negatively impact a Fund’s performance. There is no guarantee that the evaluation
of ESG considerations will be additive to a Fund’s performance.
Receipt
of Issuer’s Nonpublic Information
The
Adviser or Sub-Advisers (through their portfolio managers, analysts, or other representatives) may receive
material nonpublic information about an issuer that may restrict the ability of the Adviser or Sub-Advisers to cause the Funds to buy
or sell securities of the issuer on behalf of the Funds for substantial periods of time. This may impact the Funds' ability to realize
profit or avoid loss with respect to the issuer and may adversely affect the Funds' flexibility with respect to buying or selling securities,
potentially impacting Fund performance. For example, activist investors of certain issuers in which the Adviser or Sub-Advisers
75
hold
large positions may contact representatives of the Adviser or Sub-Advisers and may disclose material nonpublic
information in such communication. The Adviser or Sub-Advisers would be restricted from trading on the basis of such material nonpublic
information, limiting their flexibility in managing the Funds and possibly impacting Fund performance.
Business
Continuity and Operational Risk
The
Adviser, the Funds and the Funds’ service providers may experience disruptions or operating errors, such
as processing errors or human errors, inadequate or failed internal or external processes, systems or technology failures, or other disruptive
events, that could negatively impact and cause disruptions in normal business operations of the Adviser, the Funds or the Funds’
service providers. The Adviser has developed a Business Continuity Program (the “Program”) designed to minimize the disruption
of normal business operations in the event of an adverse incident affecting the Funds, the Adviser and/or its affiliates. The Program
is also designed to enable the Adviser to reestablish normal business operations in a timely manner during such an adverse incident; however,
there are inherent limitations in such programs (including the possibility that contingencies have not been anticipated and procedures
do not work as intended) and, under some circumstances (e.g. natural disasters, terrorism, public health crises, power or utility shortages
and failures, system failures or malfunctions), the Adviser, its affiliates, and any service providers or vendors used by the Adviser,
its affiliates, or the Fund could be prevented or hindered from providing services to the Funds for extended periods of time. These circumstances
could cause disruptions and negatively impact the Funds’ service providers and the Funds’ business operations, potentially
including an inability to process Fund shareholder transactions, an inability to calculate a Fund’s net asset value and price the
Fund’s investments, and impediments to trading portfolio securities.
Cybersecurity
Risk
With
the increased use of technologies such as the Internet to conduct business, the Funds,
like all companies, may be susceptible to operational,
information security and related risks. Cybersecurity incidents
involving the Funds and their service providers (including,
without limitation,
a Fund’s investment adviser,
sub-adviser,
fund accountant, custodian, transfer agent and financial intermediaries)
have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, impediments to trading,
the inability of Fund shareholders to transact business, violations
of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or
additional compliance costs.
Cybersecurity
incidents can result from deliberate cyberattacks or unintentional events and may arise from
external or internal sources. Cyberattacks may include infection by malicious software or gaining unauthorized access to digital systems,
networks or devices that are used to service the Funds' operations (e.g., by “hacking” or “phishing”). Cyberattacks
may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites
(i.e., efforts to make network services unavailable to intended users). These cyberattacks could cause the misappropriation of assets
or personal information, corruption of data or operational disruptions. Geopolitical tensions may, from time to time, increase the scale
and sophistication of deliberate cyberattacks.
Similar
adverse consequences could result from cybersecurity incidents affecting issuers of securities in which
the Funds invest, counterparties with which the Funds engage, governmental and other regulatory authorities, exchange and other financial
market operators, banks, brokers, dealers, insurance companies, other financial institutions and other parties. In addition, substantial
costs may be incurred in order to prevent any cybersecurity incidents in the future. Although the Funds’ service providers may
have established business continuity plans and risk management systems to mitigate cybersecurity risks, there can be no guarantee or assurance
that such plans or systems will be effective, or that all risks that exist, or may develop in the future, have been completely anticipated
and identified or can be protected against. The Funds and their shareholders could be negatively impacted as a result.
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Natural
Disaster/Epidemic Risk
Natural
or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe
weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and can be highly disruptive
to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates,
credit ratings, investor sentiment, and other factors affecting the value of the Funds’ investments. Given the increasing interdependence
among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets,
issuers, and/or foreign exchange rates in other countries, including the U.S. These disruptions could prevent the Funds from executing
advantageous investment decisions in a timely manner and negatively impact the Funds’ ability to achieve their investment objectives.
Any such event(s) could have a significant adverse impact on the value and risk profile of the Funds.
COVID-19.
The COVID-19
strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased
trading costs. Efforts to contain the spread of COVID-19 have resulted in travel restrictions, closed international borders, disruptions
of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee
availability, defaults and credit downgrades, among other significant economic impacts, all of which have disrupted global economic activity
across many industries and may exacerbate other pre-existing political, social and economic risks, locally or globally and cause general
concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level
and on individual businesses are unpredictable and may result in significant and prolonged effects on performance.
Custody
and Banking Risks.
The
Fund’s assets may be maintained with one or more banks or
other depository institutions (“banking institutions”), including both US and non-US banking institutions. In addition,
the Fund’s assets may be maintained at regional (or mid-size) banking institutions or large banking institutions. Regional banking
institutions are generally subject to fewer regulatory safeguards than large banking institutions, causing regional banking institutions
to be perceived as having greater credit risk than large banking institutions. The Fund may enter into credit facilities or have other
financial relationships with banking institutions. The distress, impairment or failure of one or more banking institutions, whether or
not holding the Fund’s assets, may inhibit the ability of the Fund to access depository accounts or lines of credit at all or in
a timely manner. Such events can be caused by various factors including negative market sentiment, significant withdrawals, fraud, or
poor management. In such cases, the Fund may need to delay or forgo making new investments, or the Fund may need to sell another investment
to raise cash when it is not desirable to do so, which could result in lower performance. In the event of such a failure of a banking
institution, access to such accounts could be restricted and U.S. Federal Deposit Insurance Corporation (FDIC) protection may not be available
for balances in excess of the amounts insured by the FDIC (and similar considerations may apply to banking institutions in other jurisdictions
not subject to FDIC protection). In such instances, the Fund may not recover such excess uninsured amounts and instead would only have
an unsecured claim against the banking institution and may be able to recover only the residual value of the banking institution’s
assets, if any value is recovered at all. The loss of any assets maintained with a banking institution or the inability to access such
assets for a period of time, even if ultimately recovered, could be materially adverse to the Fund. In addition, the Fund’s Adviser
may not be able to identify all potential solvency or stress concerns with respect to a banking institution or transfer assets from one
bank to another in a timely manner in the event a banking institution comes under stress or fails. It is also possible that a Fund will
incur additional expenses or delays in putting in place alternative arrangements or that such alternative arrangements will be less favorable
than those formerly in place (with respect to access to capital, economic terms, or otherwise).
Fund
Policies
Fundamental
Restrictions. Except as otherwise noted below, each Fund is subject
to the following investment restrictions, which may be changed only by a vote of such Fund's outstanding shares.
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Fundamental
restrictions may be changed only by a vote of the lesser of (i) 67% or more of the Fund's shares present
at a meeting if the holders of more than 50% of the outstanding shares are present in person or represented by proxy, or (ii) more than
50% of the Fund's outstanding shares.
(1)
The Fund is a "diversified company" as defined in the 1940 Act. The Fund will not purchase the securities of any issuer if, as a result,
the Fund would fail to be a diversified company within the meaning of the 1940 Act, and the rules and regulations promulgated thereunder,
as such statute, rules and regulations are amended from time to time or are interpreted from time to time by the SEC staff (collectively,
the 1940 Act Laws and Interpretations) or except to the extent that the Fund may be permitted to do so by exemptive order or similar relief
(collectively, with the 1940 Act Laws and Interpretations, the 1940 Act Laws, Interpretations and Exemptions). In complying with this
restriction, however, the Fund may purchase securities of other investment companies to the extent permitted by the 1940 Act Laws, Interpretations
and Exemptions
(2)
The Fund may not borrow money or issue senior securities, except as permitted by the 1940 Act Laws, Interpretations and Exemptions.
(3)
The Fund may not underwrite the securities of other issuers. This restriction does not prevent the Fund from engaging in transactions
involving the acquisition, disposition or resale of its portfolio securities, regardless of whether the Fund may be considered to be an
underwriter under the 1933 Act.
(4)
The Fund (except for Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund and Invesco
Income Allocation Fund) will not make investments that will result in the concentration (as that term may be defined or interpreted by
the 1940 Act Laws, Interpretations and Exemptions) of its investments in the securities of issuers primarily engaged in the same industry.
This restriction does not limit the Fund's investments in (i) obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities, or (ii) tax-exempt obligations issued by governments or political subdivisions of governments. In complying with this
restriction, the Fund will not consider a bank issued guaranty or financial guaranty insurance as a separate security. Invesco Select
Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund and Invesco Income Allocation Fund will make investments
that will result in the concentration (as that term may be defined or interpreted by the 1940 Act Laws, Interpretations and Exemptions)
of its investments in the securities of investment companies.
(5)
The Fund may not purchase real estate or sell real estate unless acquired as a result of ownership of securities or other instruments.
This restriction does not prevent the Fund from investing in issuers that invest, deal, or otherwise engage in transactions in real estate
or interests therein, or investing in securities that are secured by real estate or interests therein.
(6)
The Fund (except for Invesco International Diversified Fund, Invesco Main Street Mid Cap Fund®,
Invesco Main Street Small Cap Fund®,
Invesco Select Risk: Moderate Investor Fund and Invesco Small Cap Growth Fund) may not purchase physical commodities or sell physical
commodities unless acquired as a result of ownership of securities or other instruments. This restriction does not prevent the Fund from
engaging in transactions involving futures contracts and options thereon or investing in securities that are secured by physical commodities.
Invesco International Diversified Fund, Invesco Main Street Mid Cap Fund®,
Invesco Main Street Small Cap Fund®,
Invesco Select Risk: Moderate Investor Fund and Invesco Small Cap Growth Fund may not purchase or sell physical commodities except to
the extent permitted by the 1940 Act and any other governing statute, and by the rules thereunder, and by the SEC or other regulatory
agency with the authority over the Fund.
(7)
The Fund may not make personal loans or loans of its assets to persons who control or are under common control with the Fund, except to
the extent permitted by 1940 Act Laws, Interpretations and Exemptions. This restriction does not prevent the Fund from, among other things,
purchasing debt obligations, entering into repurchase agreements, loaning its assets to broker-dealers or institutional investors, or
investing in loans, including assignments and participation interests.
78
(8)
The Fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single
open-end management investment company with substantially the same fundamental investment objectives, policies and restrictions as the
Fund.
Notwithstanding
the above restriction related to concentration, the Invesco International Diversified Fund and
Invesco Select Risk: Moderate Investor Fund will make investments that will result in the concentration (as that term may be defined or
interpreted by the 1940 Act Laws, Interpretations and Exemptions) of their investments in the securities of investment companies.
For
Invesco International Diversified Fund, Invesco Main Street Mid Cap Fund®, Invesco Main Street Small
Cap Fund®, Invesco Select Risk: Moderate Investor Fund and Invesco Small Cap Growth Fund, notwithstanding the above restriction related
to physical commodities, the Fund may not purchase physical commodities or sell physical commodities unless acquired as a result of ownership
of securities or other instruments. This restriction does not prevent the Fund from engaging in transactions involving futures contracts
and options thereon or investing in securities that are secured by physical commodities.
The
investment restrictions set forth above provide each of the Funds with the ability to operate under new
interpretations of the 1940 Act or pursuant to exemptive relief from the SEC without receiving prior shareholder approval of the change.
Even though each of the Funds has this flexibility, the Board has adopted non-fundamental restrictions for each of the Funds relating
to certain of these restrictions which Invesco and, when applicable, the Sub-Advisers must follow in managing the Funds. Any changes to
these non-fundamental restrictions, which are set forth below, require the approval of the Board.
Explanatory
Note
For
purposes of the Fund’s fundamental restriction related to industry concentration above, investments in tax-exempt
municipal securities where the payment of principal and interest for such securities is derived solely from a specific project associated
with an issuer that is not a governmental entity or a political subdivision of a government are subject to a Fund’s industry concentration
policy.
For
purposes of the Fund’s fundamental restriction related to physical commodities above, the Fund is currently
permitted to invest in futures, swaps, and other instruments on physical commodities and the 1940 Act does not prohibit a fund from owning
commodities or contracts related to commodities.
The extent to which the Fund can invest in futures, swaps and
other instruments on physical commodities, and/or commodities or contracts related to commodities is set out in the Fund’s prospectus,
this SAI, and as permitted by the Fund’s fundamental restriction.
For
purposes of the Fund’s fundamental restriction related to real estate above, the 1940 Act does not prohibit
a fund from owning real estate. The extent to which the Fund can invest in real estate is set out in the investment strategies described
in the Fund’s prospectus or this SAI.
For
purposes of the Fund’s fundamental restriction related to senior securities above, the 1940 Act prohibits
a fund from issuing a “senior security,” which is generally defined as any bond, debenture, note or similar obligation or
instrument constituting a security and evidencing indebtedness, or any stock of a class having priority over any other class of the fund’s
shares with respect to the payment of dividends or the distribution of fund assets, except that the fund may borrow money as described
above.
For
purposes of the Fund’s fundamental restriction related to loans above made by the Fund, current SEC staff
interpretations under the 1940 Act prohibit a fund from lending more than one-third of its total assets, except through the purchase of
debt obligations or the use of repurchase agreements.
Non-Fundamental
Restrictions. Non-fundamental restrictions may be changed for any
Fund without shareholder approval. The non-fundamental investment restrictions listed below apply to each of the Funds unless otherwise
indicated.
(1)
In complying with the fundamental restriction regarding issuer diversification, the Fund will not, with respect to 75% of its total assets,
purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities
and securities issued by
79
other
investment companies), if, as a result, (i) more than 5% of the Fund's total assets would be invested in the securities of that issuer,
or (ii) the Fund would hold more than 10% of the outstanding voting securities of that issuer. The Fund may purchase securities of other
investment companies as permitted by the 1940 Act Laws, Interpretations and Exemptions.
In
complying with the fundamental restriction regarding issuer diversification, any Fund that invests in municipal securities will regard
each state (including the District of Columbia and Puerto Rico), territory and possession of the United States, each political subdivision,
agency, instrumentality and authority thereof, and each multi-state agency of which a state is a member as a separate "issuer." When the
assets and revenues of an agency, authority, instrumentality or other political subdivision are separate from the government creating
the subdivision and the security is backed only by assets and revenues of the subdivision, such subdivision would be deemed to be the
sole issuer. Similarly, in the case of an Industrial Development Bond or Private Activity Bond, if that bond is backed only by the assets
and revenues of the non-governmental user, then that non-governmental user would be deemed to be the sole issuer. However, if the creating
government or another entity guarantees a security, then to the extent that the value of all securities issued or guaranteed by that government
or entity and owned by the Fund exceeds 10% of the Fund's total assets, the guarantee would be considered a separate security and would
be treated as issued by that government or entity. Securities issued or guaranteed by a bank or subject to financial guaranty insurance
are not subject to the limitations set forth in the preceding sentence.
(2)
In complying with the fundamental restriction regarding borrowing money and issuing senior securities, the Fund may borrow money in an
amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings).
(3)
In complying with the fundamental restriction regarding industry concentration, the Fund may invest up to 25% of its total assets in the
securities of issuers whose principal business activities are in the same industry.
(4)
Notwithstanding the fundamental restriction with regard to engaging in transactions involving futures contracts and options thereon or
investing in securities that are secured by physical commodities, the Fund (except for Invesco Small Cap Growth Fund) currently may not
invest in any security (including futures contracts or options thereon) that is secured by physical commodities.
The
Funds do not consider currencies or other financial commodities or contracts and financial instruments to be physical commodities (which
include, for example, oil, precious metals and grains). Accordingly, the Funds will interpret the fundamental restriction and the related
non-fundamental restriction to permit the Funds, subject to each Fund's investment objectives and general investment policies (as stated
in the Funds' prospectuses and herein), to invest directly in foreign currencies and other financial commodities and to purchase, sell
or enter into commodity futures contracts and options thereon, forward foreign currency contracts, foreign currency options, currency-,
commodity- and financial instrument-related swap agreements, hybrid instruments, interest rate or securities-related or foreign currency-related
hedging instruments or other currency-, commodity- or financial instrument-related derivatives, subject to compliance with any applicable
provisions of the federal securities or commodities laws. The Funds will interpret their fundamental restriction regarding the purchase
and sale of physical commodities and their related non-fundamental restriction to permit the Funds to invest in ETFs, registered investment
companies and other pooled investment vehicles that invest in physical and/or financial commodities, subject to the limits described in
the Funds' prospectuses and herein.
(5)
In complying with the fundamental restriction with regard to making loans, the Fund may lend up to 33 1/3% of its total assets and may
lend money to an Invesco Fund, on such terms and conditions as the SEC may require in an exemptive order.
(6)
Notwithstanding the fundamental restriction with regard to investing all assets in an open-end fund, the Fund may not invest all of its
assets in the securities of a single open-end management investment company with the same fundamental investment objectives, policies
and restrictions as the Fund.
80
(7)
The Funds (except for the Asset Allocation Funds) may not acquire any securities of registered open-end investment companies or registered
unit investment trusts in reliance on Sections 12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act.
(8)
The following apply:
(a)
Invesco Main Street Small Cap Fund®
invests, under normal circumstances, at least 80% of its assets in securities of “small-cap” companies.
(b)
Invesco Main Street Mid Cap Fund®
invests, under normal circumstances, at least 80% of its assets in securities of “mid-cap” companies.
(c)
Invesco Small Cap Growth Fund invests, under normal circumstances, at least 80% of its assets in
securities of small-capitalization issuers.
(d)
Under normal market conditions, Invesco Quality Income Fund invests at least 80% of its assets in
mortgage-backed securities of any maturity or type guaranteed by, or secured by collateral that is guaranteed by, the U.S. Government,
its agencies, instrumentalities or sponsored corporations (a Federal Agency), and in mortgage-backed securities privately issued in the
United States.
(e)
Under normal circumstances, Invesco Convertible Securities Fund invests at least 80% of its assets
in convertible securities.
For
purposes of the foregoing, "assets" means net assets, plus the amount of any borrowings for investment
purposes. Derivatives and other instruments that have economic characteristics similar to the securities in a Fund’s 80% policy
described above for a Fund may be counted toward that Fund's 80% policy. The Fund will provide written notice to its shareholders prior
to any change to this policy, as required by the 1940 Act Laws, Interpretations and Exemptions.
It
is the intention of each Fund, unless otherwise indicated, that with respect to the Fund’s policies that are
a result of application of law, the Fund will take advantage of the flexibility provided by rules or interpretations of the SEC currently
in existence or promulgated in the future, or changes to such laws.
Portfolio
Turnover
Each
Fund calculates its portfolio turnover rate by dividing the value of the lesser of purchases or sales of portfolio
securities for the fiscal period by the monthly average of the value of portfolio securities owned by the Fund during the fiscal period.
A 100% portfolio turnover rate would occur, for example, if all of the portfolio securities (other than short-term securities) were replaced
once during the fiscal period. Portfolio turnover rates will vary from year to year, depending on market conditions. The following Fund
experienced significant variation in portfolio turnover during the two most recently completed fiscal years or periods, as applicable,
ended December 31.
|
Fund
|
2022
|
2021
|
|
Invesco
Main Street Small Cap Fund®1
|
36%
|
58%
|
|
|
|
|
|
1
|
Portfolio
turnover decreased due to market conditions |
Policies
and Procedures for Disclosure of Fund Holdings
The
Board has adopted policies and procedures with respect to the disclosure of the Funds' portfolio holdings
(the Holdings Disclosure Policy). Invesco and the Board may amend the Holdings Disclosure Policy at any time without prior notice. Details
of the Holdings Disclosure Policy and a description of the basis on which employees of Invesco and its affiliates may release information
about portfolio securities in certain contexts are provided below. As used in the Holdings Disclosure Policy and throughout the SAI, the
term “portfolio holdings information” includes information with respect to the portfolio holdings of a Fund, including holdings
that are derivatives and holdings held as short positions. Information generally excluded from “portfolio holdings information”
includes, without limitation, (i) descriptions of allocations among asset classes, regions, countries, industries or sectors; (ii) aggregated
data such as average or median ratios, market
81
capitalization,
credit quality or duration; (iii) performance attributions by asset class, country, industry or sector;
(iv) aggregated risk statistics, analysis and simulations, such as stress testing; (v) the characteristics of the stock and bond components
of a Fund’s portfolio holdings and other investment positions; (vi) the volatility characteristics of a Fund; (vii) information
on how various weightings and factors contributed to Fund performance; (viii) various financial characteristics of a Fund or its underlying
portfolio investments; and (ix) other information where, in the reasonable belief of the Funds' Chief Compliance Officer (or a designee),
the release of such information would not present risks of dilution, arbitrage, market timing, insider trading or other inappropriate
trading for the applicable Fund.
Public
release of portfolio holdings. The Funds, except certain Funds
for which the Adviser has determined that disclosure of portfolio holdings information on a monthly basis without a sufficient lag would
be detrimental to the Funds and their shareholders (“Exception Funds”)1,
disclose the following portfolio holdings information at www.invesco.com/us.2
|
Information
|
Approximate
Date of Website Posting |
Information
Remains Posted
on
Website |
|
Select
portfolio holdings information,
such
as top ten holdings as of the
month-end
|
15
calendar days after month-end |
Until
replaced with the
following
month’s top ten
holdings
|
|
|
|
|
|
Select
portfolio holdings information
(e.g.,
buys/sells,
contributors/detractors
and/or
relevant
to market environment) |
15
calendar days after month-end |
Until
replaced with the
following
month’s select
portfolio
holdings
information
|
|
|
|
|
|
Complete
portfolio holdings
information
as of calendar month-
end
|
30
calendar days after month-end |
For
twelve months from
the
date of posting |
|
|
|
|
|
Complete
portfolio holdings
information
as of fiscal quarter-end |
60-70
calendar days after fiscal quarter-end |
For
twelve months from
the
date of posting |
|
|
|
|
The
Exception Funds disclose the following portfolio holdings information at www.invesco.com/us.2
|
Information
|
Approximate
Date of Website Posting |
Information
Remains Posted
on
Website |
|
Select
portfolio holdings information,
such
as top ten holdings as of the
month-end
|
15
calendar days after month-end |
Until
replaced with the
following
month’s top ten
holdings
|
|
|
|
|
|
Select
portfolio holdings information
(e.g.,
buys/sells,
contributors/detractors
and/or
relevant
to market environment) |
15
calendar days after month-end |
Until
replaced with the
following
quarter’s select
portfolio
holdings
information
|
|
|
|
|
|
Complete
portfolio holdings
information
as of calendar quarter-
end
|
30
calendar days after calendar quarter-end |
For
twelve months from
the
date of posting |
|
|
|
|
|
Complete
portfolio holdings
information
as of fiscal quarter-end |
60-70
calendar days after fiscal quarter-end |
For
twelve months from
the
date of posting |
|
|
|
|
1
As
of the date of this SAI, the Exception Funds are: Invesco Small Cap Growth Fund
2
To
locate each Fund’s portfolio holdings information, go to www.invesco.com/us, select “Financial Professional” or “Individual
Investor,” if applicable. Hover over the “Products” tab and then click on “Mutual Funds.” On the “Mutual
Funds” page click on “Fund Materials.” Links to each Fund’s portfolio holdings are located under the “Holdings”
column.
82
You
may also obtain the publicly available portfolio holdings information described above by contacting us at
1-800-959-4246.
Selective
disclosure of portfolio holdings information pursuant to Non-Disclosure Agreement.
Employees of Invesco and its affiliates may disclose non-public
full portfolio holdings information on a selective basis only if Invesco approves the parties to whom disclosure of non-public full portfolio
holdings information will be made. Invesco must determine that the proposed selective disclosure will be made for business purposes of
the applicable Fund and is in the best interest of the applicable Fund’s shareholders. In making such determination, Invesco will
address any perceived conflicts of interest between shareholders of such Fund and Invesco or its affiliates as part of granting its approval.
The
Board exercises continuing oversight of the disclosure of Fund portfolio holdings information by (1) overseeing
the implementation and enforcement of the Holdings Disclosure Policy and the Invesco Funds’ Code of Ethics by the Chief Compliance
Officer (or his designee) of Invesco and the Invesco Funds and (2) considering reports and recommendations by the Chief Compliance Officer
concerning any material compliance matters (as defined in Rule 38a-1 under the 1940 Act and Rule 206(4)-7 under the Investment Advisers
Act of 1940, as amended (the Advisers Act)) that may arise in connection with the Holdings Disclosure Policy. Pursuant to the Holdings
Disclosure Policy, the Board receives reports on the specific types of situations in which Invesco proposes to provide such selective
disclosure and the situations where providing selective disclosure raises perceived conflicts of interest between shareholders of the
applicable Fund and Invesco or its affiliates. In any specific situation where Invesco addresses a perceived conflict, Invesco will report
to the Board on the persons to whom such disclosures are to be made and the treatment of any such conflicts before agreeing to provide
selective disclosure.
Invesco
discloses non-public full portfolio holdings information to the following persons in connection with the
day-to-day operations and management of the funds advised by Invesco (the Invesco Funds):
•
Attorneys
and accountants;
•
Securities
lending agents;
•
Lenders
to the Invesco Funds;
•
Rating
and rankings agencies;
•
Persons
assisting in the voting of proxies;
•
Invesco
Funds’ custodians;
•
The
Invesco Funds’ transfer agent(s) (in the event of a redemption in kind);
•
Pricing
services, market makers, or other fund accounting software providers (to determine the price of investments held by an Invesco Fund);
•
Brokers
identified by the Invesco Funds’ portfolio management team who provide execution and research services to the team;
•
Analysts
hired to perform research and analysis for the Invesco Funds’ portfolio management team; and
•
Insurance
companies which receive portfolio holdings information before Invesco posts portfolio holdings information to Invesco's website (to allow
such insurance companies to post portfolio holdings information to their websites at approximately the same time that Invesco posts portfolio
holdings information to Invesco's website).
In
many cases, Invesco will disclose current portfolio holdings information on a daily basis to these persons.
In these situations, Invesco has entered into non-disclosure agreements which provide that the recipient of the portfolio holdings information
will maintain the confidentiality of such portfolio holdings
83
information
and will not trade on such information (Non-disclosure Agreements). Please refer to Appendix B for
a list of examples of persons to whom Invesco provides non-public portfolio holdings information on an ongoing basis.
Invesco
will also disclose non-public portfolio holdings information if such disclosure is required by applicable
laws, rules or regulations, or by regulatory authorities having jurisdiction over Invesco and its affiliates or the Invesco Funds, and
where there is no other way to transact the Funds' business without disclosure of such portfolio holdings information.
The
Holdings Disclosure Policy provides that the Funds, Invesco or any other party in connection with the disclosure
of portfolio holdings information will not request, receive or accept any compensation (including compensation in the form of the maintenance
of assets in any Fund or other mutual fund or account managed by Invesco or one of its affiliates) for the selective disclosure of portfolio
holdings information.
Disclosure
of certain portfolio holdings information without Non-Disclosure Agreement.
Invesco and its affiliates that provide services to the Funds, the Sub-Advisers and each of their employees may receive or have access
to portfolio holdings information as part of the day to day operations of the Funds.
Employees
of Invesco and its affiliates may express their views orally or in writing on one or more of the Funds'
portfolio investments or may state that a Fund has recently purchased or sold, or continues to own, one or more investments. The investments
subject to these views and statements may be ones that were purchased or sold since the date on which portfolio holdings was made available
on the Fund’s website and therefore may not be reflected on the portfolio holdings information disclosed on the website. Such views
and statements may be made to various persons, including members of the press, shareholders in the applicable Fund, persons considering
investing in the applicable Fund or representatives of such shareholders or potential shareholders, such as fiduciaries of a 401(k) plan
and their advisers. The nature and content of the views and statements provided to each of these persons may differ.
Disclosure
of portfolio holdings information to traders. Additionally, employees
of Invesco and its affiliates may disclose one or more of the investments held by a Fund when purchasing and selling investments through
broker-dealers, futures commissions merchants, clearing agencies and other counterparties requesting bids on investments, obtaining price
quotations on investments, or in connection with litigation involving the Funds' portfolio investments. Invesco does not enter into formal
Non-Disclosure Agreements in connection with these situations; however, the Funds would not continue to conduct business with a person
who Invesco believed was misusing the disclosed information.
Disclosure
of portfolio holdings of other Invesco-managed products. Invesco
and its affiliates manage products sponsored by companies other than Invesco, including investment companies, offshore funds, and separate
accounts. In many cases, these other products are managed in a similar fashion to certain Invesco Funds (as defined herein) and thus have
similar portfolio holdings. The sponsors of these other products managed by Invesco and its affiliates may disclose the portfolio holdings
of their products at different times than Invesco discloses portfolio holdings for the Invesco Funds.
MANAGEMENT
OF THE TRUST
Board
of Trustees
The
Trustees and officers of the Trust, their principal occupations during at least the last five years and certain
other information concerning them are set forth in Appendix C.
Qualifications
and Experience. In addition to the information set forth in Appendix
C, the following sets forth additional information about the qualifications and experience of each of the Trustees.
84
Interested
Trustee
Martin
L. Flanagan, Trustee and Vice Chair
Martin
L. Flanagan has been a member of the Board of Trustees and Vice Chair of the Invesco Funds since
2007. Mr. Flanagan is president and chief executive officer of Invesco Ltd., a position he has held since August 2005. He is also a member
of the Board of Directors of Invesco Ltd.
Mr.
Flanagan joined Invesco, Ltd. from Franklin Resources, Inc., where he was president and co-chief executive
officer from January 2004 to July 2005. Previously he had been Franklin’s co-president from May 2003 to January 2004, chief operating
officer and chief financial officer from November 1999 to May 2003, and senior vice president and chief financial officer from 1993 until
November 1999.
Mr.
Flanagan served as director, executive vice president and chief operating officer of Templeton, Galbraith
& Hansberger, Ltd. before its acquisition by Franklin in 1992. Before joining Templeton in 1983, he worked with Arthur Andersen &
Co.
Mr.
Flanagan is a chartered financial analyst and a certified public accountant. He serves as vice chairman
of the Investment Company Institute and a member of the executive board at the SMU Cox School of Business.
The
Board believes that Mr. Flanagan’s long experience as an executive in the investment management area
benefits the Funds.
Independent
Trustees
Beth
Ann Brown, Trustee and Chair
Beth
Ann Brown has been a member of the Board of Trustees of the Invesco Funds since 2019
and Chair since August 2022. From 2016 to 2019, Ms. Brown served on the boards of certain investment companies in the Oppenheimer Funds
complex.
Ms.
Brown has served as Director of Caron Engineering, Inc. since 2018 and as an Independent Consultant
since September 2012.
Previously,
Ms. Brown served in various capacities at Columbia Management Investment Advisers LLC, including
Head of Intermediary Distribution, Managing Director, Strategic Relations and Managing Director, Head of National Accounts. She also served
as Senior Vice President, National Account Manager from 2002-2004 and Senior Vice President, Key Account Manager from 1999 to 2002 of
Liberty Funds Distributor, Inc. From 2013 through 2022, she served as Director, Vice President (through 2019) and President (2019-2022)
of Grahamtastic Connection, a non-profit organization.
From
2014 to 2017, Ms. Brown served on the Board of Advisors of Caron Engineering Inc. and also served
as President and Director of Acton Shapleigh Youth Conservation Corps, a non–profit organization, from 2012 to 2015.
The
Board believes that Ms. Brown’s experience in financial services and investment management and as a
director of other investment companies benefits the Funds.
Cynthia
Hostetler, Trustee
Cynthia
Hostetler has been a member of the Board of Trustees of the Invesco Funds since 2017.
Ms.
Hostetler is currently a member of the board of directors of the Vulcan Materials Company, a public company
engaged in the production and distribution of construction materials, Trilinc Global Impact Fund LLC, a publicly registered non-traded
limited liability company that invests in a diversified portfolio of private debt instruments, Resideo Technologies, Inc., a public company
that manufactures and distributes smart home security products and solutions worldwide, and Textainer Group Holdings, a public company
that is the world’s second largest shipping container leasing company. Ms. Hostetler also serves on the board of governors of
85
the
Investment Company Institute and is a member of the governing council of the Independent Directors Council,
both of which are professional organizations in the investment management industry.
Previously,
Ms. Hostetler served as a member of the board of directors/trustees of Aberdeen Investment Funds,
a mutual fund complex, Edgen Group Inc., a public company that provides products and services to energy and construction companies, from
2012 to 2013, prior to its sale to Sumitomo, and Genesee & Wyoming, Inc., a public company that owns and operates railroads worldwide,
from 2018 to 2019, prior to its sale to Brookfield Asset Management. Ms. Hostetler was also a member of the board of directors of the
Eisenhower Foundation, a non-profit organization.
From
2001 to 2009, Ms. Hostetler served as Head of Investment Funds and Private Equity at Overseas Private
Investment Corporation (“OPIC”), a government agency that supports US investment in the emerging markets. Ms. Hostetler
oversaw a multi-billion dollar investment portfolio in private equity funds. Prior to joining OPIC, Ms. Hostetler served as President
and member of the board of directors of First Manhattan Bancorporation, a bank holding company, from 1991 to 2007, and its largest subsidiary,
First Savings Bank, from 1991 to 2006 (Board Member) and from 1996 to 2001 (President).
The
Board believes that Ms. Hostetler’s knowledge of financial services and investment management, her experience
as a director of other companies, including a mutual fund complex, her legal background, and other professional experience gained through
her prior employment benefit the Funds.
Dr.
Eli Jones, Trustee
Dr.
Eli Jones has been a member of the Board of Trustees of the Invesco Funds since 2016.
Dr.
Jones has served as Board Member of the regional board,
First Financial Bank Texas since 2021 and Board Member, First Financial
Bankshares, Inc. Texas
(FFIN)
since 2022. Since 2020, Dr. Jones has served as a director on the
board of directors of Insperity, Inc. (“Insperity”). From 2004 to 2016, Dr. Jones was chair of the Compensation Committee,
a member of the Nominating and Corporate Governance Committee and a director on the board of directors of Insperity.
Dr.
Jones is a Professor of Marketing, Lowry and Peggy Mays Eminent Scholar, and Dean Emeritus of Mays
Business School at Texas A&M University. From 2015 to 2021, Dr. Jones served as Dean of Mays Business School at Texas A&M University.
From 2012 to 2015, Dr. Jones was the dean of the Sam M. Walton College of Business at the University of Arkansas and holder of the Sam
M. Walton Leadership Chair in Business. Prior to joining the faculty at the University of Arkansas, he was dean of the E. J. Ourso College
of Business and Ourso Distinguished Professor of Business at Louisiana State University from 2008 to 2012; professor of marketing and
associate dean at the C.T. Bauer College of Business at the University of Houston from 2007 to 2008; an associate professor of marketing
from 2002 to 2007; and an assistant professor from 1997 until 2002. He taught at Texas A&M University for several years before joining
the faculty of the University of Houston.
Dr.
Jones served as the executive director of the Program for Excellence in Selling and the Sales Excellence
Institute at the University of Houston from 1997 to 2007. Before becoming a professor, he worked in sales and sales management for three
Fortune 100 companies: Quaker Oats, Nabisco, and Frito-Lay. Dr. Jones is a past director of Arvest Bank. He received his Bachelor of Science
degree in journalism in 1982, his MBA in 1986 and his Ph.D. in 1997, all from Texas A&M University.
The
Board believes that Dr. Jones’ experience in academia and his experience in marketing benefits the Funds.
Elizabeth
Krentzman, Trustee
Elizabeth
Krentzman has been a member of the Board of Trustees of the Invesco Funds since 2019. From
2014 to 2019, Ms. Krentzman served on the boards of certain investment companies in the Oppenheimer Funds complex.
86
Ms.
Krentzman served from 2017 to 2022,
as a member of the Cartica Funds Board of Directors (private investment
funds). Ms. Krentzman previously served as a member of the Board of Trustees of the University of Florida National Board Foundation from
2016 to 2021. She also served as a member of the Board of Trustees of the University of Florida Law Center Association, Inc. from 2016
to 2021, as a member of its Audit Committee from 2016 to 2020, and as a member of its Membership Committee from 2020 to 2021.
Ms.
Krentzman served from 1997 to 2004 and from 2007 and 2014 in various capacities at Deloitte & Touche
LLP, including Principal and Chief Regulatory Advisor for Asset Management Services, U.S. Mutual Fund Leader and National Director of
the Investment Management Regulatory Consulting Practice. She served as General Counsel of the Investment Company Institute from 2004
to 2007.
From
1996 to 1997, Ms. Krentzman served as an Assistant Director of the Division of Investment Management
- Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission. She also served from 1991 to
1996 in various positions with the Division of Investment Management – Office of Regulatory Policy of the U.S. Securities and Exchange
Commission and from 1987 to 1991 as an Associate at Ropes & Gray LLP.
The
Board believes that Ms. Krentzman’s legal background, experience in financial services and accounting
and as a director of other investment companies benefits the Funds.
Anthony
J. LaCava, Jr., Trustee
Anthony
J. LaCava, Jr. has been a member of the Board of Trustees of the Invesco Funds since 2019.
Previously,
Mr. LaCava served as a member of the board of directors and as a member of the audit committee
of Blue Hills Bank, a publicly traded financial institution.
Mr.
LaCava retired after a 37-year career with KPMG LLP (“KPMG”) where he served as senior partner for
a wide range of firm clients across the retail, financial services, consumer markets, real estate, manufacturing, health care and technology
industries. From 2005 to 2013, Mr. LaCava served as a member of the board of directors of KPMG and chair of the board’s audit and
finance committee and nominating committee. He also previously served as Regional Managing Partner from 2009 through 2012 and Managing
Partner of KPMG’s New England practice.
Mr.
LaCava currently serves as Member and Chairman of the Business
School Advisory Council of Bentley University and as a member of American College of Corporate Directors and Board Leaders, Inc.
The
Board believes that Mr. LaCava’s experience in audit and financial services benefits the Funds.
Dr.
Prema Mathai-Davis, Trustee
Dr.
Prema Mathai-Davis has been a member of the Board of Trustees of the Invesco Funds since 1998.
Since
2021, Dr. Mathai-Davis has served as a member of the Board of Positive Planet US, a non-profit organization
and Healthcare Chaplaincy Network, a non-profit organization.
Previously,
Dr. Mathai-Davis served as co-founder and partner of Quantalytics Research, LLC, (a FinTech Investment
Research Platform) from 2017 to October 2019, when the firm was acquired by Forbes Media Holdings, LLC.
Dr.
Mathai-Davis previously served as Chief Executive Officer of the YWCA of the USA from 1994 until her
retirement in 2000. Prior to joining the YWCA, Dr. Mathai-Davis served as the Commissioner of the New York City Department for the Aging.
She was a Commissioner and Board Member of the Metropolitan Transportation Authority of New York, the largest regional transportation
network in the U.S. Dr. Mathai-Davis also served as a Trustee of the YWCA Retirement Fund, the first and oldest pension fund for women,
and on the advisory board of the Johns Hopkins Bioethics Institute. She was a member of the Board of Visitors of the University of Maryland
School of Public Policy, and on the visiting Committee of The Harvard University Graduate School of Education.
87
Dr.
Mathai-Davis was the president and chief executive officer of the Community Agency for Senior Citizens,
a non-profit social service agency that she established in 1981. She also directed the Mt. Sinai School of Medicine-Hunter College Long-Term
Care Gerontology Center, one of the first of its kind.
The
Board believes that Dr. Mathai-Davis’ extensive experience in running public and charitable institutions
benefits the Funds.
Joel
W. Motley, Trustee
Joel
W. Motley has been a member of the Board of Trustees of the Invesco Funds since 2019. From 2002 to
2019, Mr. Motley served on the boards of certain investment companies in the Oppenheimer Funds complex.
In
May 2022, Mr. Motley rejoined the Vestry and the Investment Committee
of Trinity Church Wall Street. Since
2021, Mr. Motley has served as a Board member of the Trust for Mutual Understanding, which makes grants to arts and environmental organizations
in Eastern Europe. Since 2021, Mr. Motley has served as a member of the board of Blue Ocean Acquisition Corp. Since 2016, Mr. Motley has
served as an independent director of the Office of Finance of the Federal Home Loan Bank System. He has served as Managing Director of
Carmona Motley, Inc., a privately-held financial advisory firm, since January 2002.
Mr.
Motley also serves as a member of the Council on Foreign Relations and its Finance and Budget Committee.
He is a member of the Investment Committee and is Chairman Emeritus of the Board of Human Rights Watch and a member of the Investment
Committee and the Board of Historic Hudson Valley, a non-profit cultural organization.
Since
2011, he has served as a Board Member and Investment Committee Member of the Pulitzer Center for
Crisis Reporting, a non-profit journalism organization. Mr. Motley also serves as Director and member of the Board and Investment Committee
of The Greenwall Foundation, a bioethics research foundation, and as a Director of Friends of the LRC, a South Africa legal services foundation.
Previously,
Mr. Motley served as Managing Director of Public Capital Advisors, LLC, a privately held financial
advisory firm, from 2006 to 2017. He also served as Managing Director of Carmona Motley Hoffman Inc. a privately-held financial advisor,
and served as a Director of Columbia Equity Financial Corp., a privately-held financial advisor, from 2002 to 2007.
The
Board believes that Mr. Motley’s experience in financial services and as a director of other investment companies
benefits the Funds.
Teresa
M. Ressel, Trustee
Teresa
Ressel has been a member of the Board of Trustees of the Invesco Funds since 2017.
Ms.
Ressel has previously served within the private sector and the U.S. government as well as consulting. Formerly,
Ms. Ressel served at UBS AG in various capacities, including as Chief Executive Officer of UBS Securities LLC, a broker-dealer division
of UBS Investment Bank, and as Group Chief Operating Officer of the Americas.
Between
2001 and 2004, Ms. Ressel served at the U.S. Treasury, initially as Deputy Assistant Secretary for
Management & Budget and then as Assistant Secretary for Management and Chief Financial Officer. Ms. Ressel was confirmed by the U.S.
Senate and anchored financial duties at the Department, including finance, accounting, risk, audit and performance measurement.
Ms.
Ressel also volunteers within her community across a number of
functions and serves on the board of GAVI, the Global Vaccine Alliance (non-profit) supporting children’s health.
The
Board believes that Ms. Ressel’s risk management and financial experience in both the private and public
sectors benefits the Funds.
88
Robert
C. Troccoli, Trustee
Robert
C. Troccoli has been a member of the Board of Trustees of the Invesco Funds since 2016.
Mr.
Troccoli retired after a 39-year career with KPMG LLP (“KPMG”), where he served as a senior Partner.
From 2013 to 2017, he was an adjunct professor at the University of Denver’s Daniels College of Business.
Mr.
Troccoli’s leadership roles during his career with KPMG included managing partner and partner in charge
of the Denver office’s Financial Services Practice. He served regulated investment companies, investment advisors, private partnerships,
private equity funds, sovereign wealth funds, and financial services companies. Toward the end of his career, Mr. Troccoli was a founding
member of KPMG’s Private Equity Group in New York City, where he served private equity firms and sovereign wealth funds. Mr. Troccoli
also served mutual fund clients along with several large private equity firms as Global Lead Partner of KPMG’s Private Equity Group.
The
Board believes that Mr. Troccoli’s experience as a partner in a large accounting firm and his knowledge
of investment companies, investment advisors, and private equity firms benefits the Funds.
Daniel
S. Vandivort, Trustee
Daniel
S. Vandivort has been a member of the Board of Trustees of the Invesco Funds since 2019. From 2014
to 2019, Mr. Vandivort served on the boards of certain investment companies in the Oppenheimer Funds complex, as a Trustee and as the
Governance Committee Chair.
Mr.
Vandivort also served as Chairman, Lead Independent Director, and Chairman of the Audit Committee of
the Board of Directors of the Value Line Funds from 2008 through 2014.
Previously,
Mr. Vandivort also served as a Trustee and Chairman of the Weiss Peck and Greer Mutual Funds Board from 2004 to 2005.
Previously,
Mr. Vandivort served at Weiss Peck and Greer/Robeco Investment Management from 1994 to 2007,
as President and Chief Investment Officer and prior to that as Managing Director and Head of Fixed Income. Mr. Vandivort also served in
various capacities at CS First Boston from 1984 to 1994, including as Head of Fixed Income at CS First Boston Investment Management.
Mr.
Vandivort was also a Trustee on the Board of Huntington Disease Foundation of America from 2007 to 2013
and from 2015 to 2019. He also served as Treasurer and Chairman of the Audit and Finance Committee of Huntington Disease Foundation of
America from 2016 to 2019.
Mr.
Vandivort currently serves as President of Flyway Advisory Services LLC, a consulting and property management
company.
The
Board believes that Mr. Vandivort’s experience in financial services and investment management and as
a director of other investment companies benefits the Funds.
Management
Information
The
Trustees have the authority to take all actions that they consider necessary or appropriate in connection
with oversight of the Trust, including, among other things, approving the investment objectives, investment policies and fundamental investment
restrictions for the Funds. The Trust has entered into agreements with various service providers, including the Funds’ investment
advisers, administrator, transfer agent, distributor and custodians, to conduct the day-to-day operations of the Funds. The Trustees are
responsible for selecting these service providers, approving the terms of their contracts with the Funds, and exercising general oversight
of these arrangements on an ongoing basis.
Certain
Trustees and officers of the Trust are affiliated with Invesco and Invesco Ltd., the parent corporation
of Invesco. All of the Trust’s executive officers hold similar offices with some or all of the other Trusts.
89
Leadership
Structure and the Board of Trustees. The Board is currently composed
of eleven Trustees, including ten Trustees who are not “interested persons” of the Funds, as that term is defined in the
1940 Act (collectively, the Independent Trustees and each, an Independent Trustee). In addition to eight regularly scheduled meetings
per year, the Board holds special meetings or informal conference calls to discuss specific matters that may require action prior to the
next regular meeting. As discussed below, the Board has established four standing committees – the Audit Committee, the Compliance
Committee, the Governance Committee and the Investments Committee (the Committees), to assist the Board in performing its oversight responsibilities.
The
Board has appointed an Independent Trustee to serve in the role of Chair. The Chair’s primary role is to
preside at meetings of the Board and act as a liaison with the Adviser and other service providers, officers, attorneys, and other Trustees
between meetings. The Chair also participates in the preparation of the agenda for the meetings of the Board, is active with mutual fund
industry organizations, and may perform such other functions as may be requested by the Board from time to time. Except for any duties
specified pursuant to the Trust’s Declaration of Trust or By-laws, the designation of Chair does not impose on such Independent
Trustee any duties, obligations or liability that is greater than the duties, obligations or liability imposed on such person as a member
of the Board generally.
The
Board believes that its leadership structure, including having an Independent Trustee as Chair, allows for
effective communication between the Trustees and management, among the Trustees and among the Independent Trustees. The existing Board
structure, including its Committee structure, provides the Independent Trustees with effective control over Board governance while also
allowing them to receive and benefit from insight from the interested Trustee who is an active officer of the Funds’ investment
adviser. The Board’s leadership structure promotes dialogue and debate, which the Board believes allows for the proper consideration
of matters deemed important to the Funds and their shareholders and results in effective decision-making.
Risk
Oversight. The Board considers risk management issues as part of
its general oversight responsibilities throughout the year at its regular meetings and at regular meetings of its Committees. Invesco
prepares regular reports that address certain investment, valuation and compliance matters, and the Board as a whole or the Committees
also receive special written reports or presentations on a variety of risk issues at the request of the Board,
a Committee or the Senior Officer.
The
Board also considers liquidity risk management issues as part of its general oversight responsibilities and
oversees the Trust's liquidity risk through, among other things, receiving periodic reporting and presentations by Invesco personnel that
address liquidity matters. As required by Rule 22e-4 under the 1940 Act, the Board, including a majority of the Independent Trustees,
has approved the Trust's Liquidity Risk Management ("LRM") Program, which is reasonably designed to assess and manage the Trust's liquidity
risk, and has appointed the LRM Program Administrator that is responsible for administering the LRM Program. The Board also reviews, no
less frequently than annually, a written report prepared by the LRM Program Administrator that addresses, among other items, the operation
of the program and assesses its adequacy and effectiveness of implementation.
The
Audit Committee is apprised by, and discusses with, management its policies on risk assessment and risk
management. Such discussion includes a discussion of the guidelines governing the process by which risks are assessed and managed and
an identification of each Fund’s major financial risk exposures. In addition, the Audit Committee meets regularly with representatives
of Invesco Ltd.’s internal audit group to review reports on their examinations of functions and processes within Invesco that affect
the Funds. The Audit Committee also oversees the Adviser’s process for valuing the Funds’ portfolio investments and receives
reports from management regarding its process and the valuation of the Funds’ portfolio investments
as consistent with the valuation
policy approved by the Board and related procedures.
The
Compliance Committee receives regular compliance reports prepared by Invesco’s compliance group and
meets regularly with the Fund’s Chief Compliance Officer (CCO) to discuss compliance issues, including compliance risks. The Compliance
Committee has recommended and the Board has adopted compliance
90
policies
and procedures for the Funds and for the Funds’ service providers. The compliance policies and procedures
are designed to detect, prevent and correct violations of the federal securities laws.
The
Governance Committee monitors the composition of the Board and each of its Committees and monitors
the qualifications of the Trustees to ensure adherence to certain governance undertakings applicable to the Funds. In addition, the Governance
Committee oversees an annual self-assessment of the Board and addresses governance risks, including insurance and fidelity bond matters,
for the Trust.
The
Investments Committee and its sub-committees receive regular written reports describing and analyzing
the investment performance of the Invesco Funds. In addition, Invesco’s Chief Investment Officers and the portfolio managers of
the Funds meet regularly with the Investments Committee or its sub-committees to discuss portfolio performance, including investment risk,
such as the impact on the Funds of investments in particular types of securities or instruments, such as derivatives. To the extent that
a Fund changes a particular investment strategy that could have a material impact on the Fund’s risk profile, the Board generally
is consulted in advance with respect to such change.
Committee
Structure
The
members of the Audit Committee are Messrs. LaCava (Chair)
and Troccoli, Dr. Jones, and Mss. Hostetler and Ressel. The Audit
Committee performs a number of functions with respect to the oversight of the Funds’ accounting and financial reporting, including:
(i) assisting the Board with its oversight of the qualifications, independence and performance of the independent registered public accountants;
(ii) selecting independent registered public accountants for the Funds; (iii) to the extent required, pre-approving certain audit and
permissible non-audit services; (iv) overseeing the financial reporting process for the Funds; (v) assisting the Board with its oversight
of the integrity of the Funds’ financial statements and compliance with legal and regulatory requirements that relate to the Funds’
accounting and financial reporting, internal control over financial reporting and independent audits; (vi) pre-approving engagements for
non-audit services to be provided by the Funds’ independent auditors to the Funds’ investment adviser or to any of its affiliates;
and (vii) overseeing the performance of the fair
valuation determinations by the Adviser. During the fiscal year
ended December 31, 2022, the Audit Committee held five meetings.
The
members of the Compliance Committee are Messrs. Motley and Vandivort, and Mss. Brown
and Krentzman (Chair) and Dr. Mathai-Davis. The Compliance Committee
performs a number of functions with respect to compliance matters, including: (i) reviewing and making recommendations concerning the
qualifications, performance and compensation of the Funds’ Chief Compliance Officer; (ii) reviewing recommendations and reports
made by the Chief Compliance Officer of the Funds regarding compliance matters; (iii) overseeing compliance policies and procedures of
the Funds and their service providers; (iv) overseeing potential conflicts of interest that are reported to the Compliance Committee by
Invesco, the Chief Compliance Officer; (v) reviewing reports prepared by a third party’s compliance review of Invesco; (vi) if
requested by the Board, overseeing risk management with respect to the Funds, including receiving and overseeing risk management reports
from Invesco that are applicable to the Funds and their service providers; and (vii) reviewing reports by Invesco on correspondence with
regulators or governmental agencies with respect to the Funds and recommending to the Board what action, if any, should be taken by the
Funds in light of such reports. During the fiscal year ended December 31, 2022, the Compliance Committee held four meetings.
The
members of the Governance Committee are Messrs. Motley
and Vandivort (Chair) and Mss. Brown and Hostetler and Dr. Mathai-Davis.
The Governance Committee performs a number of functions with respect to governance, including: (i) nominating persons to serve as Independent
Trustees and as members of each Committee, and nominating the Chair of the Board,
the Chair of each Committee and the Chair of each Sub-Committee
of the Investments committee; (ii) reviewing and making recommendations to the full Board regarding the size and composition of the Board
and the compensation payable to the Independent Trustees;(iii) overseeing the annual evaluation of the performance of the Board and its
Committees; (iv) considering and overseeing the selection of independent legal counsel to the Independent Trustees; (v) considering and
overseeing the selection and engagement of a Senior Officer if and as they deem
91
appropriate,
including compensation and scope of services, and recommending all such matters to the Board or
the independent trustees as appropriate; (vi) reviewing administrative and/or logistical matters pertaining to the operations of the Board;
and (vii) reviewing annually recommendations from Invesco regarding amounts and coverage of primary and excess directors and officers/errors
and omissions liability insurance and allocation of premiums. During the fiscal year ended December 31, 2022, the Governance Committee
held nine meetings.
The
Governance Committee will consider nominees recommended by a shareholder to serve as trustees, provided:
(i) that such submitting shareholder is a shareholder of record at the time he or she submits such names and is entitled to vote at the
meeting of shareholders at which trustees will be elected; and (ii) that the Governance Committee or the Board, as applicable, shall make
the final determination of persons to be nominated. Notice procedures set forth in the Trust’s bylaws require that any shareholder
of a Fund desiring to nominate a candidate for election at a shareholder meeting must provide certain information about itself and the
candidate, and must submit to the Trust’s Secretary the nomination in writing not later than the close of business on the later
of the 90th day, nor earlier than the close of business on the 120th day, prior to the first anniversary of the preceding year’s
annual meeting; provided, however, that in the event that the date of the annual meeting is advanced by more than 30 days or delayed by
more than 60 days from such anniversary date or if the Trust has not previously held an annual meeting, notice by the Shareholder to be
timely must be so delivered not earlier than the close of business on the 120th day prior to such annual meeting and not later than the
close of business on the later of the 90th day prior to such annual meeting or the tenth day following the day on which public announcement
of the date of such meeting is first made by the Trust.
The
members of the Investments Committee are Messrs. Flanagan, LaCava, Motley, Troccoli
(Sub-Committee Chair) and Vandivort, Mss. Brown, Hostetler (Chair),
Krentzman
and Ressel (Sub-Committee Chair) and Drs. Jones and Mathai-Davis (Sub-Committee Chair). The Investments Committee’s primary purposes
are to assist the Board in its oversight of the investment management services provided by Invesco and the Sub-Advisers and to periodically
review Fund performance information, information regarding the Funds’ trading practices and such other reports pertaining to portfolio
securities transactions and information regarding the investment personnel and other resources devoted to the management of the Funds
and make recommendations to the Board, when applicable. During the fiscal year ended December 31, 2022, the Investments Committee held
four meetings.
The
Investments Committee has established three Sub-Committees and delegated to the Sub-Committees
responsibility for, among other matters: (i) reviewing the performance of the Invesco Funds that have been assigned to a particular Sub-Committee
(for each Sub-Committee, the Designated Funds), except to the extent the Investments Committee takes such action directly; (ii) reviewing
with the applicable portfolio managers from time to time the investment objective(s), policies, strategies, performance and risks and
other investment-related matters of the Designated Funds; and (iii) being generally familiar with the investment objectives and principal
investment strategies of the Designated Funds.
Trustee
Ownership of Fund Shares
The
dollar range of equity securities beneficially owned by each trustee (i) in the Funds and (ii) on an aggregate
basis, in all registered investment companies overseen by the trustee within the Invesco Funds complex, is set forth in Appendix C.
Compensation
Each
Trustee who is not affiliated with Invesco is compensated for his or her services according to a fee schedule
that recognizes the fact that such Trustee also serves as a Trustee of other Invesco Funds. Each such Trustee receives a fee, allocated
among the Invesco Funds for which he or she serves as a Trustee that consists of an annual retainer component and a meeting fee component.
The Chair of the Board and of each Committee and Sub-Committee receive additional compensation for their services.
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Information
regarding compensation paid or accrued for each Trustee of the Trust who was not affiliated with
Invesco during the year ended December 31, 2022 is found in Appendix D.
Retirement
Policy
The
Trustees have adopted a retirement policy that permits each Trustee to serve until December 31 of the
year in which the Trustee turns 75.
Pre-Amendment
Retirement Plan For Trustees
The
Trustees have adopted a Retirement Plan for the Trustees who are not affiliated with the Adviser. A description
of the pre-amendment Retirement Plan follows. Annual retirement benefits are available from the Funds and/or the other Invesco Funds for
which a Trustee serves (each, a Covered Fund), for each Trustee who is not an employee or officer of the Adviser, who either (a) became
a Trustee prior to December 1, 2008, and who has at least five years of credited service as a Trustee (including service to a predecessor
fund) of a Covered Fund, or (b) was a member of the Board of Trustees of a Van Kampen Fund immediately prior to June 1, 2010 (Former Van
Kampen Trustee), and has at least one year of credited service as a Trustee of a Covered Fund after June 1, 2010.
For
Trustees other than Former Van Kampen Trustees, effective January 1, 2006, for retirements after December
31, 2005, the retirement benefits will equal 75% of the Trustee’s annual retainer paid to or accrued by any Covered Fund with respect
to such Trustee during the twelve-month period prior to retirement, including the amount of any retainer deferred under a separate deferred
compensation agreement between the Covered Fund and the Trustee. The amount of the annual retirement benefit does not include additional
compensation paid for Board meeting fees or compensation paid to the Chair of the Board and the Chairs and Vice Chairs of certain Board
committees, whether such amounts are paid directly to the Trustee or deferred. The annual retirement benefit is payable in quarterly installments
for a number of years equal to the lesser of (i) sixteen years or (ii) the number of such Trustee’s credited years of service.
If a Trustee dies prior to receiving the full amount of retirement benefits, the remaining payments will be made to the deceased Trustee’s
designated beneficiary for the same length of time that the Trustee would have received the payments based on his or her service or, if
the Trustee has elected, in a discounted lump sum payment. A Trustee must have attained the age of 65 (60 in the event of disability)
to receive any retirement benefit. A Trustee may make an irrevocable election to commence payment of retirement benefits upon retirement
from the Board before age 72; in such a case, the annual retirement benefit is subject to a reduction for early payment.
If
the Former Van Kampen Trustee completes at least 10 years of credited service after June 1, 2010, the retirement
benefit will equal 75% of the Former Van Kampen Trustee’s annual retainer paid to or accrued by any Covered Fund with respect to
such Trustee during the twelve-month period prior to retirement, including the amount of any retainer deferred under a separate deferred
compensation agreement between the Covered Fund and such Trustee. The amount of the annual retirement benefit does not include additional
compensation paid for Board meeting fees or compensation paid to the Chair of the Board and the Chairs and Vice Chairs of certain Board
committees, whether such amounts are paid directly to the Trustee or deferred. The annual retirement benefit is payable in quarterly installments
for 10 years beginning after the later of the Former Van Kampen Trustee’s termination of service or attainment of age 72 (or age
60 in the event of disability or immediately in the event of death). If a Former Van Kampen Trustee dies prior to receiving the full amount
of retirement benefits, the remaining payments will be made to the deceased Trustee’s designated beneficiary or, if the Trustee
has elected, in a discounted lump sum payment.
If
the Former Van Kampen Trustee completes less than 10 years of credited service after June 1, 2010, the
retirement benefit will be payable at the applicable time described in the preceding paragraph, but will be paid in two components successively.
For the period of time equal to the Former Van Kampen Trustee’s years of credited service after June 1, 2010, the first component
of the annual retirement benefit will equal 75% of the compensation amount described in the preceding paragraph. Thereafter, for the period
of time equal to the Former Van Kampen Trustee’s years of credited service after June 1, 2010, the second component of the annual
retirement benefit will equal the excess of (x) 75% of the compensation amount described in the
93
preceding
paragraph, over (y) $68,041 plus an interest factor of 4% per year compounded annually measured from
June 1, 2010 through the first day of each year for which payments under this second component are to be made. In no event, however, will
the retirement benefits under the two components be made for a period of time greater than 10 years. For example, if the Former Van Kampen
Trustee completes 7 years of credited service after June 1, 2010, he or she will receive 7 years of payments under the first component
and thereafter 3 years of payments under the second component, and if the Former Van Kampen Trustee completes 4 years of credited service
after June 1, 2010, he or she will receive 4 years of payments under the first component and thereafter 4 years of payments under the
second component.
Amendment
of Retirement Plan and Conversion to Defined Contribution Plan
The
Trustees approved an amendment to the Retirement Plan to convert it to a defined contribution plan for
active Trustees (the Amended Plan). Under the Amended Plan, the benefit amount was amended for each active Trustee to the present value
of the Trustee’s existing retirement plan benefit as of December 31, 2013 (the Existing Plan Benefit) plus the present value of
retirement benefits expected to be earned under the Retirement Plan through the end of the calendar year in which the Trustee attained
age 75 (the Expected Future Benefit and, together with the Existing Plan Benefit, the Accrued Benefit). On the conversion date, the Covered
Funds established bookkeeping accounts in the amount of their pro rata share of the Accrued Benefit, which is deemed to be invested in
one or more Invesco Funds selected by the participating Trustees. Such accounts will be adjusted from time to time to reflect deemed investment
earnings and losses. Each Trustee’s Accrued Benefit is not funded and, with respect to the payments of amounts held in the accounts,
the participating Trustees have the status of unsecured creditors of the Covered Funds. Trustees will be paid the adjusted account balance
under the Amended Plan in quarterly installments for the same period as described above.
Deferred
Compensation Agreements
Seven
former Trustees, as well as Messrs. LaCava, Motley, Troccoli
and Vandivort, Mss. Hostetler and Drs. Jones and Mathai-Davis (for
purposes of this paragraph only, the Deferring Trustees) have each executed a Deferred Compensation Agreement (collectively, the Compensation
Agreements). Pursuant to the Compensation Agreements, the Deferring Trustees have the option to elect to defer receipt of up to 100% of
their compensation payable by the Funds, and such amounts are placed into a deferral account and deemed to be invested in one or more
Invesco Funds selected by the Deferring Trustees.
Distributions
from these deferral accounts will be paid in cash, generally in equal quarterly installments over
a period of up to ten (10) years (depending on the Compensation Agreement) beginning on the date selected under the Compensation Agreement.
If a Deferring Trustee dies prior to the distribution of amounts in his or her deferral account, the balance of the deferral account will
be distributed to his or her designated beneficiary. The Compensation Agreements are not funded and, with respect to the payments of amounts
held in the deferral accounts, the Deferring Trustees have the status of unsecured creditors of the Funds and of each other Invesco Fund
from which they are deferring compensation.
Purchase
of Class A Shares of the Funds at Net Asset Value
The
Trustees and certain other affiliated persons of the Trust may purchase Class A shares of the Invesco Funds
without paying an initial sales charge. Invesco Distributors permits such purchases because there is a reduced sales effort involved in
sales to such purchasers, thereby resulting in relatively low expenses of distribution. For a complete description of the persons who
will not pay an initial sales charge on purchases of Class A shares of the Invesco Funds, see Appendix L — “Purchase, Redemption,
Exchange and Pricing of Shares — Purchase and Redemption
of Shares — Class A Shares Sold Without an Initial Sales Charge.”
Purchases
of Class Y Shares of the Funds
The
Trustees and certain other affiliated persons of the Trust may purchase Class Y shares of the Invesco Funds.
For a description please see “Appendix L — Purchase, Redemption,
Exchange and Pricing of Shares — Purchase and Redemption
of Shares — Purchases of Class Y Shares.”
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Code
of Ethics
Invesco,
the Trust, Invesco Distributors and certain of the Sub-Advisers each have adopted a Code of Ethics
that applies to all Invesco Fund trustees and officers, and employees of Invesco, the Sub-Advisers and their affiliates, and governs,
among other things, the personal trading activities of all such persons. Certain Sub-Advisers have adopted their own Code of Ethics. Each
Code of Ethics is designed to detect and prevent improper personal trading by portfolio managers and certain other employees that could
compete with or take advantage of the Fund’s portfolio transactions. Unless specifically noted, to the extent a Sub-Adviser has
adopted its own Code of Ethics, each Sub-Adviser’s Code of Ethics does not materially differ from Invesco’s Code of Ethics
discussed below. The Code of Ethics is intended to address conflicts of interest with the Trust that may arise from personal trading in
the Invesco Funds. Personal trading, including personal trading involving securities that may be purchased or held by an Invesco Fund,
is permitted under the Code of Ethics subject to certain restrictions; however, employees are required to pre-clear security transactions
with the Compliance Officer or a designee and to report transactions on a regular basis.
Proxy
Voting Policies
Invesco
has adopted its own specific Proxy Voting Policies.
The
Board has delegated responsibility for decisions regarding proxy voting for securities held by each Fund
to the following Adviser/Sub-Adviser(s):
|
Fund
Name |
Adviser/Sub-Adviser
|
|
Invesco
Active Allocation Fund |
Invesco
Advisers, Inc. |
|
Invesco
Convertible Securities Fund |
Invesco
Advisers, Inc. |
|
Invesco
Income Advantage
International
Fund |
Invesco
Advisers, Inc. |
|
Invesco
Income Allocation Fund |
Invesco
Advisers, Inc. |
|
Invesco
International Diversified
Fund
|
Invesco
Advisers, Inc. |
|
Invesco
Main Street Mid Cap Fund®
|
Invesco
Advisers, Inc. |
|
Invesco
Main Street Small Cap
Fund®
|
Invesco
Advisers, Inc. |
|
Invesco
Quality Income Fund |
Invesco
Advisers, Inc. |
|
Invesco
Select Risk: Conservative
Investor
Fund |
Invesco
Advisers, Inc. |
|
Invesco
Select Risk: Growth
Investor
Fund |
Invesco
Advisers, Inc. |
|
Invesco
Select Risk: High Growth
Investor
Fund |
Invesco
Advisers, Inc. |
|
Invesco
Select Risk: Moderate
Investor
Fund |
Invesco
Advisers, Inc. |
|
Invesco
Select Risk: Moderately
Conservative
Fund |
Invesco
Advisers, Inc. |
|
Invesco
Small Cap Growth Fund |
Invesco
Advisers, Inc |
Invesco
(the Proxy Voting Entity) will vote such proxies in accordance with its proxy voting policies and procedures,
as outlined above, which have been reviewed and approved by the Board, and which are found in Appendix E. Any material changes to the
proxy voting policies and procedures will be submitted to the Board for approval. The Board will be supplied with a summary quarterly
report of each Fund’s proxy voting record. Information regarding how the Funds voted proxies related to their portfolio securities
during the twelve months ended June 30, 2022 is available without charge at our website,
http://www.invesco.com/us.
This information will also be available at the SEC website, http://www.sec.gov.
95
CONTROL
PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
Information
about the ownership of each class of each Fund’s shares by beneficial or record owners of such
Fund and ownership of Fund shares by trustees and officers as a group is found in Appendix F. A shareholder who owns beneficially 25%
or more of the outstanding shares of a Fund is presumed to “control” that Fund.
INVESTMENT
ADVISORY AND OTHER SERVICES
Investment
Adviser
Invesco
serves as the Funds' investment adviser. The Adviser manages the investment operations of the Funds
as well as other investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for
the performance of the Funds' day-to-day management. The Adviser, as successor in interest to multiple investment advisers, has been an
investment adviser since 1976. Invesco Advisers, Inc. also serves as investment adviser for certain of the Underlying Funds in which the
Asset Allocation Funds invest. These Underlying Funds are known as the Invesco Funds. Invesco Capital serves as investment adviser for
certain of the Underlying Funds that the Asset Allocation Funds invest in. These Underlying Funds are known as the Invesco ETFs. Invesco
Capital is a direct, wholly-owned subsidiary of Invesco Ltd. Invesco is an indirect, wholly-owned subsidiary of Invesco Ltd. Invesco Ltd.
and its subsidiaries are an independent global investment management group. Certain of the directors and officers of Invesco are also
executive officers of the Trust and their affiliations are shown under "Management Information" herein.
As
investment adviser, Invesco supervises all aspects of the Funds' operations and provides investment advisory
services to the Funds. Invesco obtains and evaluates economic, statistical and financial information to formulate and implement investment
programs for the Funds. The Master Investment Advisory Agreement (Advisory Agreement) provides that, in fulfilling its responsibilities,
Invesco may engage the services of other investment managers with respect to one or more of the Funds. The investment advisory services
of Invesco are not exclusive and Invesco is free to render investment advisory services to others, including other investment companies.
Pursuant
to an administrative services agreement with the Funds, Invesco is also responsible for furnishing
to the Funds, at Invesco's expense, the services of persons believed to be competent to perform all supervisory and administrative services
required by the Funds, which in the judgment of the trustees, are necessary to conduct the business of the Funds effectively, as well
as the offices, equipment and other facilities necessary for their operations. Such functions include the maintenance of each Fund's accounts
and records, and the preparation of all requisite corporate documents such as tax returns and reports to the SEC and shareholders.
The
Advisory Agreement provides that each Fund will pay or cause to be paid all expenses of such Fund not
assumed by Invesco, including, without limitation: brokerage commissions, taxes, legal, auditing or governmental fees, custodian, transfer
and shareholder service agent costs, expenses of issue, sale, redemption, and repurchase of shares, expenses of registering and qualifying
shares for sale, expenses relating to trustee and shareholder meetings, the cost of preparing and distributing reports and notices to
shareholders, the fees and other expenses incurred by the Trust on behalf of each Fund in connection with membership in investment company
organizations, and the cost of printing copies of prospectuses and statements of additional information distributed to the Funds' shareholders.
Invesco,
at its own expense, furnishes to the Trust office space and facilities. Invesco furnishes to the Trust
all personnel for managing the affairs of the Trust and each of its series of shares.
Pursuant
to its Advisory Agreement with the Trust, Invesco receives no advisory fee from the Asset Allocation
Funds, except for Invesco Active Allocation Fund.
Pursuant
to its Advisory Agreement with the Trust, Invesco receives a monthly fee from each Fund (other than
Invesco International Diversified Fund, Invesco Income Allocation Fund, Invesco Select Risk: Conservative Investor Fund, Invesco Select
Risk: Growth Investor Fund, Invesco Select Risk: High Growth
96
Investor
Fund, Invesco Select Risk: Moderate Investor Fund and Invesco Select Risk: Moderately Conservative
Investor Fund) calculated at the annual rates indicated in the second column below, based on the average daily net assets of each Fund
during the year. Each Fund allocates advisory fees to a class based on the relative net assets of each class.
97
|
Fund
Name |
Annual
Rate/Net Assets Per Advisory Agreement |
|
|
|
Invesco
may from time to time waive or reduce its fee. Voluntary fee waivers or reductions may be rescinded
at any time without further notice to investors. During periods of voluntary fee waivers or reductions, Invesco will retain its ability
to be reimbursed for such fee prior to the end of the respective fiscal year in which the voluntary fee waiver or reduction was made.
Invesco
has contractually agreed through at least June 30, 2024, to waive
advisory fees payable by each Fund, for any Fund that charges an advisory fee, in an amount equal to 100% of the net advisory fee Invesco
receives from the Affiliated Money Market Funds as a result of each Fund's investment of uninvested cash in the Affiliated Money Market
Funds. See "Description of the Funds and Their Investments and Risks — Investment Strategies and Risks — Other Investments
— Other Investment Companies."
Invesco
also has contractually agreed to waive advisory fees or reimburse expenses to the extent necessary
to limit the total annual fund operating expenses (excluding (i) interest; (ii) taxes; (iii) dividend expenses on short sales; (iv) extraordinary
or non-routine items, including litigation expenses; and (v) expenses that each Fund has incurred but did not actually pay because of
an expense offset arrangement, if applicable) for the Funds' shares as follows:
|
Fund
|
Annual
Rate/Net Assets Per Expense Limitation Agreement |
Expiration
Date |
|
Invesco
Active Allocation Fund |
|
|
|
Class
A Shares |
1.50%
|
June
30, 2023 |
|
Class
C Shares |
2.25%
|
|
|
Class
R Shares |
1.75%
|
|
|
Class
R5 Shares |
1.25%
|
|
|
Class
R6 Shares |
1.25%
|
|
|
Class
Y Shares |
1.25%
|
|
|
|
|
|
|
Invesco
Convertible Securities Fund |
|
|
|
Class
A Shares |
1.50%
|
June
30, 2023 |
|
Class
C Shares |
2.25%
|
|
|
Class
R5 Shares |
1.25%
|
|
|
Class
R6 Shares |
1.25%
|
|
|
Class
Y Shares |
1.25%
|
|
|
|
|
|
|
Invesco
Income Advantage
International
Fund |
|
|
|
Class
A Shares |
1.23%
|
April
30, 2024 |
|
Class
C Shares |
1.98%
|
|
|
Class
R Shares |
1.48%
|
|
|
Class
R5 Shares |
0.98%
|
|
|
Class
R6 Shares |
0.98%
|
|
|
Class
Y Shares |
0.98%
|
|
|
|
|
|
|
Invesco
Income Allocation Fund |
|
|
|
Class
A Shares |
1.50%
|
June
30, 2023 |
|
Class
C Shares |
2.25%
|
|
|
Class
R Shares |
1.75%
|
|
|
Class
R5 Shares |
1.25%
|
|
|
Class
R6 Shares |
1.25%
|
|
|
Class
Y Shares |
1.25%
|
|
|
|
|
|
|
Invesco
International Diversified
Fund
|
|
|
|
Class
A Shares |
2.25%
|
June
30, 2023 |
98
|
Fund
|
Annual
Rate/Net Assets Per Expense Limitation Agreement |
Expiration
Date |
|
Class
C Shares |
3.00%
|
|
|
Class
R Shares |
2.50%
|
|
|
Class
R5 Shares |
2.00%
|
|
|
Class
R6 Shares |
2.00%
|
|
|
Class
Y Shares |
2.00%
|
|
|
|
|
|
|
Invesco
Main Street Mid Cap Fund®
|
|
|
|
Class
A Shares |
2.00%
|
June
30, 2023 |
|
Class
C Shares |
2.75%
|
|
|
Class
R Shares |
2.25%
|
|
|
Class
R5 Shares |
1.75%
|
|
|
Class
R6 Shares |
1.75%
|
|
|
Class
Y Shares |
1.75%
|
|
|
|
|
|
|
Invesco
Main Street Small Cap
Fund®
|
|
|
|
Class
A Shares |
2.00%
|
June
30, 2023 |
|
Class
C Shares |
2.75%
|
|
|
Class
R Shares |
2.25%
|
|
|
Class
R5 Shares |
1.75%
|
|
|
Class
R6 Shares |
1.75%
|
|
|
Class
Y Shares |
1.75%
|
|
|
|
|
|
|
Invesco
Quality Income Fund |
|
|
|
Class
A Shares |
1.50%
|
June
30, 2023 |
|
Class
C Shares |
2.25%
|
|
|
Class
R Shares |
1.75%
|
|
|
Class
R5 Shares |
1.25%
|
|
|
Class
R6 Shares |
1.25%
|
|
|
Class
Y Shares |
1.25%
|
|
|
|
|
|
|
Invesco
Select Risk: Conservative
Investor
Fund |
|
|
|
Class
A Shares |
0.50%
|
April
30, 2024 |
|
Class
C Shares |
1.25%
|
|
|
Class
R Shares |
0.75%
|
|
|
Class
R5 Shares |
0.25%
|
|
|
Class
R6 Shares |
0.25%
|
|
|
Class
Y Shares |
0.25%
|
|
|
|
|
|
|
Invesco
Select Risk: Growth
Investor
Fund |
|
|
|
Class
A Shares |
2.00%
|
June
30, 2023 |
|
Class
C Shares |
2.75%
|
|
|
Class
R Shares |
2.25%
|
|
|
Class
R5 Shares |
1.75%
|
|
|
Class
R6 Shares |
1.75%
|
|
|
Class
S Shares |
1.90%
|
|
|
Class
Y Shares |
1.75%
|
|
|
|
|
|
|
Invesco
Select Risk: High Growth
Investor
Fund |
|
|
|
Class
A Shares |
0.45%
|
April
30, 2024 |
|
Class
C Shares |
1.20%
|
|
99
|
Fund
|
Annual
Rate/Net Assets Per Expense Limitation Agreement |
Expiration
Date |
|
Class
R Shares |
0.70%
|
|
|
Class
R5 Shares |
0.20%
|
|
|
Class
R6 Shares |
0.20%
|
|
|
Class
Y Shares |
0.20%
|
|
|
|
|
|
|
Invesco
Select Risk: Moderate
Investor
Fund |
|
|
|
Class
A Shares |
0.47%
|
April
30, 2024 |
|
Class
C Shares |
1.22%
|
|
|
Class
R Shares |
0.72%
|
|
|
Class
R5 Shares |
0.22%
|
|
|
Class
R6 Shares |
0.22%
|
|
|
Class
S Shares |
0.37%
|
|
|
Class
Y Shares |
0.22%
|
|
|
|
|
|
|
Invesco
Select Risk: Moderately
Conservative
Investor Fund |
|
|
|
Class
A Shares |
1.50%
|
June
30, 2023 |
|
Class
C Shares |
2.25%
|
|
|
Class
R Shares |
1.75%
|
|
|
Class
R5 Shares |
1.25%
|
|
|
Class
R6 Shares |
1.25%
|
|
|
Class
S Shares |
1.40%
|
|
|
Class
Y Shares |
1.25%
|
|
|
|
|
|
|
Invesco
Small Cap Growth Fund |
|
|
|
Class
A Shares |
2.00%
|
June
30, 2023 |
|
Class
C Shares |
2.75%
|
|
|
Class
R Shares |
2.25%
|
|
|
Class
R5 Shares |
1.75%
|
|
|
Class
R6 Shares |
1.75%
|
|
|
Class
Y Shares |
1.75%
|
|
|
Investor
Class Shares |
2.00%
|
|
|
|
|
|
If
applicable, such contractual fee waivers or reductions are set forth in the Fee Table to each Fund's Prospectus.
Unless Invesco continues the fee waiver agreements, they will terminate as indicated in the table above. During their terms, the fee waiver
agreements cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board.
The
management fees payable by each Fund, the amounts waived by Invesco and the net fee paid by each
Fund for the last three fiscal years or periods, as applicable, ended December 31 are found in Appendix G.
Investment
Sub-Advisers
Invesco
has entered into a Sub-Advisory Agreement with certain affiliates to serve as sub-advisers to each
Fund (each, a Sub-Adviser), pursuant to which these affiliated sub-advisers may be appointed by Invesco from time to time to provide discretionary
investment management services, investment advice, and/or order execution services to the Funds. These affiliated sub-advisers, each of
which is a registered investment adviser under the Advisers Act are:
•
Invesco
Asset Management Deutschland GmbH (Invesco Deutschland)
•
Invesco
Asset Management Limited (Invesco Asset Management)
100
•
Invesco
Asset Management (Japan) Limited (Invesco Japan)
•
Invesco
Canada Ltd. (Invesco Canada)
•
Invesco
Hong Kong Limited (Invesco Hong Kong)
•
Invesco
Senior Secured Management, Inc. (Invesco Senior Secured)
Invesco
has also entered into Sub-Advisory Agreements with Invesco Capital (Invesco Capital) and Invesco
Asset Management (India) Private Limited (Invesco India), also affiliated sub-advisers which are registered investment advisers under
the Advisers Act, to provide discretionary investment management services, investment advice, and/or order execution services to the Funds
(except for Invesco Income Advantage International Fund, Invesco Income Allocation Fund, Invesco Select Risk: Growth Investor Fund, and
Invesco Select Risk: Moderately Conservative Investor Fund).
The
only fees payable to the Sub-Advisers described above under the Sub-Advisory Agreements are for providing
discretionary investment management services. For such services, Invesco will pay each Sub-Adviser a fee, computed daily and paid monthly,
equal to (i) 40% of the monthly compensation that Invesco receives from the Trust, multiplied by (ii) the fraction equal to the net assets
of such Fund as to which such Sub-Adviser shall have provided discretionary investment management services for that month divided by the
net assets of such Fund for that month. Pursuant to the Sub-Advisory Agreement, this fee is reduced to reflect contractual or voluntary
fee waivers or expense limitations by Invesco, if any, in effect from time to time. In no event shall the aggregate monthly fees paid
to the Sub-Advisers under the Sub-Advisory Agreement exceed 40% of the monthly compensation that Invesco receives from the Trust pursuant
to its advisory agreement with the Trust, as reduced to reflect contractual or voluntary fee waivers or expense limitations by Invesco,
if any.
Invesco
has also entered into a Sub-Advisory Agreement with another affiliate, OppenheimerFunds, Inc., also
a registered investment adviser under the Advisers Act, to provide discretionary investment management services, investment advice, and/or
order execution services to Invesco Active Allocation Fund, Invesco International Diversified Fund, Invesco Main Street Mid Cap Fund®,
Invesco Main Street Small Cap Fund®,
Invesco Select Risk: Conservative Investor Fund, Invesco Select Risk: High Growth Investor Fund and Invesco Select Risk: Moderate Investor
Fund. Under the sub-advisory agreement, the Adviser pays the Sub-Adviser a percentage of the net investment advisory fee (after all applicable
waivers) that it receives from the Funds as compensation for the provision of investment advisory services. The fee paid to the Sub-Adviser
under the Sub-Advisory Agreement is paid by the Adviser, not by the Funds.
Invesco
and each Sub-Adviser are indirect wholly-owned subsidiaries of Invesco Ltd.
Service
Agreements
Administrative
Services Agreement. Invesco and the Trust have entered into a Master
Administrative Services Agreement (Administrative Services Agreement) pursuant to which Invesco may perform or arrange for the provision
of certain accounting and other administrative services to each Fund which are not required to be performed by Invesco under the Advisory
Agreement. The Administrative Services Agreement provides that it will remain in effect and continue from year to year only if such continuance
is specifically approved at least annually by the Board, including the independent trustees. Under the Administrative Services Agreement,
Invesco is entitled to receive from the Funds reimbursement of its costs or such reasonable compensation. Currently, Invesco is reimbursed
for the services of the Trust’s principal financial officer and her staff and any expenses related to fund accounting services.
Administrative
services fees paid to Invesco by each Fund for the last three fiscal years or periods, as applicable,
ended December 31 are found in Appendix I.
101
Other
Service Providers
Transfer
Agent. Invesco Investment Services, Inc., (Invesco Investment Services),
11 Greenway Plaza, Suite 1000, Houston, Texas 77046-1173, a wholly-owned subsidiary of Invesco, Ltd. is the Trust’s transfer agent.
The
Amended and Restated Transfer Agency and Service Agreement (the TA Agreement) between the Trust
and Invesco Investment Services provides that Invesco Investment Services will perform certain services related to the servicing of shareholders
of the Funds. Other such services may be delegated or sub-contracted to third party intermediaries. For servicing accounts holding Class
A, A2, AX, C, CX, P, R, RX, S, Y, Invesco Cash Reserve and Investor Class shares, as applicable, the TA Agreement provides that the Trust,
on behalf of the Funds, will pay Invesco Investment Services an annual fee per open shareholder account. This fee is paid monthly at the
rate of 1/12 of the annual rate and is based upon the number of open shareholder accounts during each month. For servicing accounts holding
Class R5 and Class R6 shares, as applicable, the TA Agreement provides that the Trust, on behalf of the Funds, will pay Invesco Investment
Services an asset-based fee. The TA Agreement also provides that Invesco Investment Services is responsible for out of pocket expenses
relating to the procurement of goods and services as they relate to its obligations under the TA Agreement. In addition, all fees payable
by Invesco Investment Services or its affiliates to third party intermediaries who service accounts pursuant to sub-transfer agency, omnibus
account services and sub-accounting agreements are charged back to the Funds, subject to certain limitations approved by the Board of
the Trust as reflected in Board-approved policies. These payments are made in consideration of services that would otherwise be provided
by Invesco Investment Services if the accounts serviced by such intermediaries were serviced by Invesco Investment Services directly.
For more information regarding such payments to intermediaries, see the discussion under “Sub-Accounting and Networking Support
Payments” found in Appendix L.
Sub-Transfer
Agent. Invesco Canada, 120 Bloor Street East, Suite 700, Toronto,
Ontario, Canada M4W 1B7, a wholly-owned, indirect subsidiary of Invesco Ltd., provides services to the Trust as a sub-transfer agent,
pursuant to an agreement between Invesco Canada and Invesco Investment Services. The Trust does not pay a fee to Invesco Canada for these
services. Rather Invesco Canada is compensated by Invesco Investment Services, as a sub-contractor.
In
addition, Invesco (India) Private Limited, Divyasree Orion, B6 15TH FLOOR, Raidurgam, Serilingampalli,
Hyderabad, India K7 500032, a wholly-owned, indirect subsidiary of Invesco Ltd., provides services to the Trust as a sub-transfer agent,
pursuant to an agreement between Invesco (India) Private Limited and Invesco Investment Services. The Trust does not pay a fee to Invesco
(India) Private Limited and Invesco Investment Services. Rather Invesco (India) Private Limited is compensated by Invesco Investment Services,
as a sub-contractor.
Custodian
State
Street Bank and Trust Company (the Custodian), 225 Franklin Street, Boston, Massachusetts 02110-2801,
is custodian of all securities and cash of the Funds.
The
Custodian is authorized to establish separate accounts in foreign countries and to cause foreign securities
owned by the Funds to be held outside the United States in branches of U.S. banks and, to the extent permitted by applicable regulations,
in certain foreign banks and securities depositories. Invesco is responsible for selecting eligible foreign securities depositories and
for assessing the risks associated with investing in foreign countries, including the risk of using eligible foreign securities' depositories
in a country. The Custodian is responsible for monitoring eligible foreign securities depositories.
Under
its contract with the Trust, the Custodian maintains the portfolio securities of the Funds, administers
the purchases and sales of portfolio securities, collects interest and dividends and other distributions made on the securities held in
the portfolios of the Funds and performs other ministerial duties. These services do not include any supervisory function over management
or provide any protection against any possible depreciation of assets.
102
Independent
Registered Public Accounting Firm. The Funds' independent registered
public accounting firm is responsible for auditing the financial statements of the Funds. The Audit Committee of the Board has selected,
and the Board has ratified and approved PricewaterhouseCoopers LLP, 1000 Louisiana Street, Suite 5800, Houston, Texas 77002-5021, as the
independent registered public accounting firm to audit the financial statements of the Funds. In connection with the audit of the Funds'
financial statements, the Funds entered into an engagement letter with PricewaterhouseCoopers LLP. The terms of the engagement letter
required by PricewaterhouseCoopers LLP, and agreed to by the Funds' Audit Committee, include a provision mandating the use of mediation
and arbitration to resolve any controversy or claim between the parties arising out of or relating to the engagement letter or the services
provided thereunder.
Counsel
to the Trust. Legal matters for the Trust have been passed upon
by Stradley Ronon Stevens & Young, LLP, 2005 Market Street, Suite 2600, Philadelphia, Pennsylvania 19103-7018.
Securities
Lending Arrangements
Certain
Funds in the table below may participate in a securities lending program pursuant to a securities lending
agreement that establishes the terms of the loan, including collateral requirements. The Funds participating in the securities lending
program may lend securities to securities brokers and other borrowers.
Under
the securities lending program, Bank of New York Mellon (BNY Mellon) served as a securities lending
agent for the Funds' most recently completed fiscal year, as listed in the table below. On September 29, 2021, the Board appointed Invesco
to serve as an affiliated securities lending agent for the Funds under the securities lending program. Invesco served as an affiliated
securities lending agent for the Funds' most recently completed fiscal year, as listed in the table below (as applicable).
To
the extent a Fund utilizes Invesco as an affiliated securities lending agent, the Fund conducts its securities
lending in accordance with and reliance on no-action letters issued by the SEC staff that provide guidance on how an affiliate may act
as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board has approved policies
and procedures that govern a Fund's securities lending activities when utilizing an affiliated securities lending agent, such as Invesco,
consistent with the guidance set forth in the no-action letters.
Invesco
serves as a securities lending agent to other clients in addition to the Funds. There are potential conflicts
of interests involved in the Funds’ use of Invesco as an affiliated securities lending agent, including but not limited to: (i)
Invesco as securities lending agent may have an incentive to increase or decrease the amount of securities on loan, lend particular securities,
delay or forgo calling securities on loans, or lend securities to less creditworthy borrowers, in order to generate additional fees for
Invesco and its affiliates; and (ii) Invesco as securities lending agent may have an incentive to allocate loans to clients that would
provide more fees to Invesco. Invesco seeks to mitigate these potential conflicts of interest by utilizing a methodology designed to provide
its securities lending clients with equal lending opportunities over time.
103
For
the fiscal year ended December 31, 2022, the income earned by the
Funds, as well as the fees and/or compensation paid by the Funds (in dollars) to BNY Mellon pursuant to the securities lending agreement
were as follows:
|
|
Gross
income
from
securities
lending
activities
|
Fees
paid
to
Securities
Lending
Agent
from
a
revenue
split
|
Fees
paid for
any
cash
collateral
management
service
(including
fees
deducted
from
a
pooled
cash
collateral
reinvestment
vehicle)
not
included
in
the
revenue
split
|
Administrative
fees
not
included
in
the
revenue
split |
Indemnification
fees
not
included
in
the
revenue
split |
Rebate
(paid
to
borrower)
|
Other
fees
not
included
in
the
revenue
split
|
Aggregate
fees/
compensation
for
securities
lending
activities
|
Net
income
from
securities
lending
activities
|
|
Invesco
Active
Allocation
Fund |
$118,547.94
|
$5,419.14
|
$10,654.00
|
$0.00
|
$0.00
|
$53,700.03
|
$0.00
|
$69,773.17
|
$48,774.77
|
|
Invesco
Income
Advantage
International
Fund
|
636.79
|
4.61
|
18.00
|
0.00
|
0.00
|
572.20
|
0.00
|
594.81
|
41.98
|
|
Invesco
Income
Allocation
Fund |
32,990.43
|
11,171.93
|
6,426.00
|
0.00
|
0.00
|
(85,163.18)
|
0.00
|
(67,565.25)
|
100,555.68
|
|
Invesco
Main Street
Mid
Cap Fund® |
1,363,792.85
|
10,832.59
|
118,536.00
|
0.00
|
0.00
|
1,136,886.87
|
0.00
|
1,266,255.46
|
97,537.39
|
|
Invesco
Main Street
Small
Cap Fund® |
2,038,361.05
|
15,402.12
|
177,682.00
|
0.00
|
0.00
|
1,706,575.46
|
0.00
|
1,899,659.58
|
138,701.47
|
|
Invesco
Quality Income
Fund
|
280.04
|
13.58
|
61.00
|
0.00
|
0.00
|
83.10
|
0.00
|
157.68
|
122.36
|
|
Invesco
Select Risk:
Conservative
Investor
Fund
|
15,599.30
|
704.63
|
7,852.00
|
0.00
|
0.00
|
700.34
|
0.00
|
9,256.97
|
6,342.33
|
|
Invesco
Select Risk:
Growth
Investor Fund |
10,235.31
|
819.10
|
5,248.00
|
0.00
|
0.00
|
(3,204.88)
|
0.00
|
2,862.22
|
7,373.09
|
|
Invesco
Select Risk:
High
Growth Investor
Fund
|
1,376.53
|
1,471.72
|
859.00
|
0.00
|
0.00
|
(14,199.87)
|
0.00
|
(11,869.15)
|
13,245.68
|
|
Invesco
Select Risk:
Moderate
Investor
Fund
|
555,738.16
|
11,152.53
|
26,016.00
|
0.00
|
0.00
|
418,191.84
|
0.00
|
455,360.37
|
100,377.79
|
|
Invesco
Select Risk:
Moderately
Conservative
Investor
Fund
|
140,094.31
|
5,788.20
|
11,775.00
|
0.00
|
0.00
|
70,434.53
|
0.00
|
87,997.73
|
52,096.58
|
|
Invesco
Small Cap
Growth
Fund |
4,831,018.72
|
40,132.99
|
415,643.00
|
0.00
|
0.00
|
4,013,846.12
|
0.00
|
4,469,622.11
|
361,396.61
|
For
the fiscal year ended December 31, 2022, BNY Mellon provided the
following services for the Funds in connection with securities lending activities: (i) entering into loans with approved entities subject
to guidelines or restrictions provided by the Fund; (ii) negotiating loan terms; (iii) receiving collateral from borrowers; (iv) collecting
distributions from borrowers and crediting such distributions to the custodial account; (v) collecting securities loan fees and crediting
them to the collateral account; (vi) terminating loans in its reasonable discretion or as directed by the Fund; (vii) effecting currency
conversion transactions; (viii) investing and reinvesting cash collateral; (ix) maintaining books and records; and (x) acting as the Fund’s
agent in connection with all aspects of (including establishment, maintenance, perfection, administration, performance of and realization
upon) the security interest in, and lien and charge upon, the collateral.
104
For
the fiscal year ended December 31, 2022, the income earned by the
Funds, as well as the fees and/or compensation paid by the Funds (in dollars) to Invesco pursuant to the affiliated securities lending
agreement were as follows:
|
|
Gross
income
from
securities
lending
activities
|
Fees
paid
to
Securities
Lending
Agent
from
a
revenue
split*
|
Fees
paid for
any
cash
collateral
management
service
(including
fees
deducted
from
a
pooled
cash
collateral
reinvestment
vehicle)
not
included
in
the
revenue
split
|
Administrative
fees
not
included
in
the
revenue
split |
Indemnification
fees
not
included
in
the
revenue
split |
Rebate
(paid
to
borrower)
|
Other
fees
not
included
in
the
revenue
split
|
Aggregate
fees/
compensation
for
securities
lending
activities
|
Net
income
from
securities
lending
activities
|
|
Invesco
Active
Allocation
Fund |
$87,002.14
|
$2,405.47
|
$0.00
|
$9,623.53
|
$0.00
|
($36,117.58)
|
$0.00
|
($24,088.58)
|
$111,090.72
|
|
Invesco
Income
Advantage
International
Fund
|
4.01
|
0.09
|
0.00
|
0.41
|
0.00
|
(0.92)
|
0.00
|
(0.42)
|
4.43
|
|
Invesco
Income
Allocation
Fund |
101,839.35
|
1,725.84
|
0.00
|
6,906.09
|
0.00
|
13,676.01
|
0.00
|
22,307.94
|
79,531.41
|
|
Invesco
Main Street
Mid
Cap Fund® |
997,428.44
|
1,452.34
|
0.00
|
5,823.02
|
0.00
|
919,354.15
|
0.00
|
926,629.51
|
70,798.93
|
|
Invesco
Main Street
Small
Cap Fund® |
2,069,159.14
|
2,734.34
|
0.00
|
10,970.95
|
0.00
|
1,922,889.97
|
0.00
|
1,936,595.26
|
132,563.88
|
|
Invesco
Select Risk:
Conservative
Investor
Fund
|
122,781.82
|
1,771.11
|
0.00
|
7,085.01
|
0.00
|
33,272.09
|
0.00
|
42,128.21
|
80,653.61
|
|
Invesco
Select Risk:
Growth
Investor Fund |
57,882.33
|
1,541.28
|
0.00
|
6,166.82
|
0.00
|
(21,560.70)
|
0.00
|
(13,852.60)
|
71,734.93
|
|
Invesco
Select Risk:
High
Growth Investor
Fund
|
12,669.02
|
1,228.56
|
0.00
|
4,914.95
|
0.00
|
(48,765.95)
|
0.00
|
(42,622.44)
|
55,291.46
|
|
Invesco
Select Risk:
Moderate
Investor
Fund
|
222,612.84
|
4,227.49
|
0.00
|
16,914.02
|
0.00
|
9,553.40
|
0.00
|
30,694.91
|
191,917.93
|
|
Invesco
Select Risk:
Moderately
Conservative
Investor
Fund
|
3,045.32
|
153.89
|
0.00
|
615.96
|
0.00
|
(5,175.38)
|
0.00
|
(4,405.53)
|
7,450.85
|
|
Invesco
Small Cap
Growth
Fund |
4,460,549.21
|
7,073.96
|
0.00
|
28,358.25
|
0.00
|
4,074,274.23
|
0.00
|
4,109,706.44
|
350,842.77
|
*Paid
to BNY Mellon
Further,
for the fiscal year ended December 31, 2022, Invesco provided the
following services for the Funds in connection with affiliated securities lending activities: (i) identify available loan opportunities,
(ii) negotiate loan terms; (iii) enter into loans with prime brokers subject to guidelines or restrictions provided by the Funds; (iv)
input loan details into the securities lending platform; (v) monitor daily reports and data files of loan details to ensure compliance
with applicable policies and requirements or restrictions of the securities lending program; (vi) monitor re-rate surveillance reports;
(vii) re-negotiate loan rates and re-allocate or recall securities where necessary; and (viii) provide quarterly reports to the Securities
Lending Governance Committee and to the Board on information required by Invesco’s policies and procedures for affiliated securities
lending.
In
addition, the Advisory Agreement describes administrative services to be rendered by Invesco under such
Advisory Agreement if a Fund engages in securities lending activities, as well as the compensation Invesco may receive for such administrative
services. Services to be provided include, where applicable: (a) overseeing participation in the securities lending program to ensure
compliance with all applicable regulatory
105
and
investment guidelines; (b) assisting the securities lending agent or principal in determining which specific securities
are available for loan; (c) monitoring the securities lending agent to ensure that securities loans are effected in accordance with Invesco’s
instructions and with procedures adopted by the Board; (d) preparing appropriate periodic reports for, and seeking appropriate approvals
from, the Board with respect to securities lending activities; (e) responding to securities lending agent inquiries; and (f) performing
such other duties as may be necessary. Invesco also monitors the creditworthiness of the securities lending agent and borrowers to ensure
that securities loans are effected in accordance with Invesco’s risk policies. The Advisory Agreement authorizes Invesco to receive
a separate fee equal to 25% of the net monthly interest or fee income retained or paid to the Funds for the administrative services that
Invesco renders in connection with securities lending. Invesco has contractually agreed, however, not to charge this fee under the Advisory
Agreement and to obtain Board approval prior to charging such a fee in the future.
Portfolio
Managers
Appendix
H contains the following information regarding the portfolio managers identified in each Fund’s Prospectus:
•
The
dollar range of the managers’ investments in each Fund.
•
A
description of the managers’ compensation structure.
•
Information
regarding other accounts managed and potential conflicts of interest that might arise from the management of multiple accounts.
BROKERAGE
ALLOCATION AND OTHER PRACTICES
The
Sub-Advisers have adopted compliance procedures that cover, among other items, brokerage allocation
and other trading practices. If all or a portion of a Fund’s assets are managed by one or more Sub-Advisers, the decision to buy
and sell securities and broker selection will be made by the Sub-Adviser for the assets it manages. Unless specifically noted, the Sub-Advisers
brokerage allocation procedures do not materially differ from Invesco Advisers, Inc.’s procedures.
As
discussed below, Invesco and the Sub-Advisers, unless prohibited by applicable law, may cause a Fund
to pay a broker-dealer a commission for effecting a transaction that exceeds the amount another broker-dealer would have charged for effecting
the same transaction in recognition of the value of brokerage and research services provided by that broker-dealer. Effective January
3, 2018, under the European Union’s Markets in Financial Instruments Directive (MiFID II), European Union investment advisers,
including Invesco Deutschland and Invesco Asset Management, which may act as sub-adviser to certain Invesco Funds as described in such
Funds' prospectuses, must pay for research from broker-dealers directly out of their own resources, rather than through client commissions.
Brokerage
Transactions
Placing
trades generally involves acting on portfolio manager instructions to buy or sell a specified amount
of portfolio securities, including selecting one or more broker-dealers, including affiliated and third-party broker-dealers, to execute
the trades, and negotiating commissions and spreads. Various Invesco Ltd. subsidiaries have created a global equity trading desk. The
global equity trading desk has assigned local traders in six primary trading centers to place equity securities trades in their regions.
Invesco Advisers’ Americas desk, located in Atlanta and Toronto, generally places trades of equity securities trading in North
America, Canada and Latin America; the Hong Kong desk of Invesco Hong Kong (the Hong Kong Desk) generally places trades of equity securities
in the Asia-Pacific markets, except Japan and China; the Japan trading desk of Invesco Japan generally places trades of equity securities
in the Japanese markets; the EMEA trading desk of Invesco Asset Management Limited (the EMEA Desk) generally places trades of equity securities
in European, Middle Eastern and African countries; the Australia desk, located in Sydney and Melbourne, for the execution of orders of
equity securities trading in the Australian and New Zealand markets and the Taipei desk, located in Taipei, for the execution of orders
of securities trading in the Chinese market. Invesco, Invesco Canada, Invesco Japan, Invesco Deutschland, Invesco Hong Kong, Invesco Capital
and
106
Invesco
Asset Management use the global equity trading desk to place equity trades. Other Sub-Advisers may
use the global equity trading desk in the future. The trading procedures for the global trading desks are similar in all material respects.
References
in the language below to actions by Invesco or a Sub-Adviser making determinations or taking
actions related to equity trading include these entities’ delegation of these determinations/actions to the Americas Desk, the
Hong Kong Desk, and the EMEA Desk. Even when trading is delegated by Invesco or the Sub-Advisers to the various arms of the global equity
trading desk, Invesco or the Sub-Advisers that delegate trading is responsible for oversight of this trading activity.
Invesco
or the Sub-Advisers make decisions to buy and sell securities for each Fund, select broker-dealers
(each, a Broker), effect the Funds' investment portfolio transactions, allocate brokerage fees in such transactions and, where applicable,
negotiate commissions and spreads on transactions. Invesco’s and the Sub-Advisers’ primary consideration in effecting a
security transaction is to obtain best execution, which Invesco defines as prompt and efficient execution of the transaction at the best
obtainable price with payment of commissions, mark-ups or mark-downs which are reasonable in relation to the value of the brokerage services
provided by the Broker. While Invesco or the Sub-Advisers seek reasonably competitive commission rates, the Funds may not pay the lowest
commission or spread available. See “Broker Selection” below.
Some
of the securities in which the Funds invest are traded in OTC markets. Portfolio transactions in such
markets may be effected on a principal basis at net prices without commissions, but which include compensation to the Broker in the form
of a mark-up or mark-down, or on an agency basis, which involves the payment of negotiated brokerage commissions to the Broker, including
electronic communication networks. Purchases of underwritten issues, which include initial public offerings and secondary offerings, include
a commission or concession paid by the issuer (not the Funds) to the underwriter. Purchases of money market instruments may be made directly
from issuers without the payment of commissions.
Historically,
Invesco and the Sub-Advisers did not negotiate commission rates on stock markets outside the
United States. In recent years many overseas stock markets have adopted a system of negotiated rates; however, a number of markets maintain
an established schedule of minimum commission rates.
In
some cases, Invesco may decide to place trades on a “blind principal bid” basis, which involves combining
all trades for one or more portfolios into a single basket, and generating a description of the characteristics of the basket for provision
to potential executing brokers. Based on the trade characteristics information provided by Invesco, these brokers submit bids for executing
all of the required trades at a designated time for a specific commission rate. Invesco generally selects the broker with the lowest bid
to execute these trades.
Commissions
The
Funds may engage in certain principal and agency transactions with banks and their affiliates that own
5% or more of the outstanding voting securities of an Invesco Fund, provided the conditions of an exemptive order received by the Invesco
Funds from the SEC are met. In addition, a Fund may purchase or sell a security from or to certain other Invesco Funds or other accounts
(and may invest in the Affiliated Money Market Funds) provided the Funds follow procedures adopted by the Boards of the various Invesco
Funds, including the Trust. These inter-fund transactions generally do not generate brokerage commissions but may result in custodial
fees or taxes or other related expenses.
Brokerage
commissions paid by each of the Funds during the last three fiscal years or periods, as applicable,
ended December 31 are found in Appendix J.
Broker
Selection
Invesco’s
or the Sub-Advisers’ primary consideration in selecting Brokers to execute portfolio transactions for
a Fund is to obtain best execution. In selecting a Broker to execute a portfolio transaction in equity securities for a Fund, Invesco
or the Sub-Advisers consider the full range and quality of a Broker’s services, including the value of research and/or brokerage
services provided (if permitted by applicable law or
107
regulation),
execution capability, commission rate, and willingness to commit capital, anonymity and responsiveness.
Invesco’s and the Sub-Advisers’ primary consideration when selecting a Broker to execute a portfolio transaction in fixed
income securities for a Fund is the Broker’s ability to deliver or sell the relevant fixed income securities; however, Invesco
and the Sub-Advisers will, if permitted by applicable law or regulation, also consider the various factors listed above. In each case,
the determinative factor is not the lowest commission or spread available but whether the transaction represents the best qualitative
execution for the Fund. Invesco and the Sub-Advisers will not select Brokers based upon their promotion or sale of Fund shares.
Unless
prohibited by applicable law, such as MiFID II (described herein), in choosing Brokers to execute portfolio
transactions for the Funds, Invesco or the Sub-Advisers may select Brokers that provide brokerage and/or research services (Soft Dollar
Products) to the Funds and/or the other accounts over which Invesco and its affiliates have investment discretion. For the avoidance of
doubt, European Union investment advisers, including Invesco Deutschland and Invesco Asset Management, which may act as sub-adviser to
certain Invesco Funds as described in such Funds’ prospectuses, must pay for research from broker-dealers directly out of their
own resources, rather than through client commissions. Therefore, the use of the defined term “Sub-Advisers” throughout
this section shall not be deemed to apply to those Sub-Advisers subject to the MiFID II prohibitions. Section 28(e) of the Securities
Exchange Act of 1934, as amended (the Exchange Act),, provides that Invesco or the Sub-Advisers, under certain circumstances, lawfully
may cause an account to pay a higher commission than the lowest available. Under Section 28(e)(1), Invesco or the Sub-Advisers must make
a good faith determination that the commissions paid are “reasonable in relation to the value of the brokerage and research services
provided ... viewed in terms of either that particular transaction or [Invesco’s or the Sub-Advisers’] overall responsibilities
with respect to the accounts as to which [it] exercises investment discretion.” The services provided by the Broker also must lawfully
and appropriately assist Invesco or the Sub-Advisers in the performance of its investment decision-making responsibilities. Accordingly,
a Fund may pay a Broker commissions higher than those available from another Broker in recognition of the Broker’s provision of
Soft Dollar Products to Invesco or the Sub-Advisers.
Invesco
and the Sub-Advisers face a potential conflict of interest when they use client trades to obtain Soft
Dollar Products. This conflict exists because Invesco and the Sub-Advisers are able to use the Soft Dollar Products to manage client accounts
without paying cash for the Soft Dollar Products, which reduces Invesco’s or a Sub-Adviser’s expenses to the extent that
Invesco or such Sub-Adviser would have purchased such products had they not been provided by Brokers. Section 28(e) permits Invesco or
the Sub-Advisers to use Soft Dollar Products for the benefit of any account it manages. Certain Invesco-managed accounts (or accounts
managed by the Sub-Advisers) may generate soft dollars used to purchase Soft Dollar Products that ultimately benefit other Invesco-managed
accounts (or Sub-Adviser-managed accounts), effectively cross subsidizing the other Invesco-managed accounts (or the other Sub-Adviser-managed
accounts) that benefit directly from the product. Invesco or the Sub-Advisers may not use all of the Soft Dollar Products provided by
Brokers through which a Fund effects securities transactions in connection with managing the Fund whose trades generated the soft dollars
used to purchase such products.
Invesco
presently engages in the following instances of cross-subsidization:
Fixed
income funds normally do not generate soft dollar commissions to pay for Soft Dollar Products. Therefore,
soft dollar commissions used to pay for Soft Dollar Products which are used to manage certain fixed income Invesco Funds are generated
entirely by equity Invesco Funds and other equity client accounts managed by Invesco. In other words, certain fixed income Invesco Funds
are cross-subsidized by the equity Invesco Funds in that the fixed income Invesco Funds receive the benefit of Soft Dollar Products services
for which they do not pay. Similarly, other accounts managed by Invesco or certain of its affiliates may benefit from Soft Dollar Products
services for which they do not pay.
Invesco
and the Sub-Advisers attempt to reduce or eliminate the potential conflicts of interest concerning the
use of Soft Dollar Products by directing client trades for Soft Dollar Products only if Invesco or the Sub-Adviser concludes that the
Broker supplying the product is capable of providing best execution.
108
Certain
Soft Dollar Products may be available directly from a vendor on a hard dollar basis; other Soft Dollar
Products are available only through Brokers in exchange for soft dollars. Invesco and the Sub-Adviser use soft dollars to purchase two
types of Soft Dollar Products:
•
proprietary
research created by the Broker executing the trade, and
•
other
products created by third parties that are supplied to Invesco or the Sub-Advisers through the Broker executing the trade.
Proprietary
research consists primarily of traditional research reports, recommendations and similar materials
produced by the in-house research staffs of broker-dealer firms. This research includes evaluations and recommendations of specific companies
or industry groups, as well as analyses of general economic and market conditions and trends, market data, contacts and other related
information and assistance. Invesco periodically rates the quality of proprietary research produced by various Brokers. Based on the evaluation
of the quality of information that Invesco receives from each Broker, Invesco develops an estimate of each Broker’s share of Invesco
clients’ commission dollars and attempts to direct trades to these firms to meet these estimates.
Invesco
and the Sub-Advisers also use soft dollars to acquire products from third parties that are supplied to
Invesco or the Sub-Advisers through Brokers executing the trades or other Brokers who “step in” to a transaction and receive
a portion of the brokerage commission for the trade. Invesco or the Sub-Advisers may from time to time instruct the executing Broker to
allocate or “step out” a portion of a transaction to another Broker. The Broker to which Invesco or the Sub-Advisers have
“stepped out” would then settle and complete the designated portion of the transaction, and the executing Broker would settle
and complete the remaining portion of the transaction that has not been “stepped out.” Each Broker may receive a commission
or brokerage fee with respect to that portion of the transaction that it settles and completes.
Soft
Dollar Products received from Brokers supplement Invesco’s and the Sub-Advisers’ own research (and
the research of certain of its affiliates), and may include the following types of products and services:
•
Database
Services – comprehensive databases containing current and/or historical information on companies and industries and indices. Examples
include historical securities prices, earnings estimates and financial data. These services may include software tools that allow the
user to search the database or to prepare value-added analyses related to the investment process (such as forecasts and models used in
the portfolio management process).
•
Quotation/Trading/News
Systems – products that provide real time market data information, such as pricing of individual securities and information on
current trading, as well as a variety of news services.
•
Economic
Data/Forecasting Tools – various macro economic forecasting tools, such as economic data or currency and political forecasts for
various countries or regions.
•
Quantitative/Technical
Analysis – software tools that assist in quantitative and technical analysis of investment data.
•
Fundamental/Industry
Analysis – industry specific fundamental investment research.
•
Fixed
Income Security Analysis – data and analytical tools that pertain specifically to fixed income securities. These tools assist in
creating financial models, such as cash flow projections and interest rate sensitivity analyses, which are relevant to fixed income securities.
•
Other
Specialized Tools – other specialized products, such as consulting analyses, access to industry experts, and distinct investment
expertise such as forensic accounting or custom built investment-analysis software.
If
Invesco or the Sub-Advisers determine that any service or product has a mixed use (i.e., it also serves functions
that do not assist the investment decision-making or trading process), Invesco or the Sub-Advisers
109
will
allocate the costs of such service or product accordingly in its reasonable discretion. Invesco or the Sub-Advisers
will allocate brokerage commissions to Brokers only for the portion of the service or product that Invesco or the Sub-Advisers determine
assists it in the investment decision-making or trading process and will pay for the remaining value of the product or service in cash.
Outside
research assistance is useful to Invesco or the Sub-Advisers because the Brokers used by Invesco
or the Sub-Advisers tend to provide more in-depth analysis of a broader universe of securities and other matters than Invesco’s
or the Sub-Advisers’ staff follow. In addition, such services provide Invesco or the Sub-Advisers with a diverse perspective on
financial markets. Some Brokers may indicate that the provision of research services is dependent upon the generation of certain specified
levels of commissions and underwriting concessions by Invesco’s or the Sub-Advisers’ clients, including the Funds. However,
the Funds are not under any obligation to deal with any Broker in the execution of transactions in portfolio securities. In some cases,
Soft Dollar Products are available only from the Broker providing them. In other cases, Soft Dollar Products may be obtainable from alternative
sources in return for cash payments. Invesco and the Sub-Advisers believe that because Broker research supplements rather than replaces
Invesco’s or the Sub-Advisers’ research, the receipt of such research tends to improve the quality of Invesco’s or
the Sub-Advisers’ investment advice. The advisory fee paid by the Funds is not reduced because Invesco or the Sub-Advisers receive
such services. To the extent the Funds' portfolio transactions are used to obtain Soft Dollar Products, the brokerage commissions obtained
by the Funds might exceed those that might otherwise have been paid.
Invesco
or the Sub-Advisers may determine target levels of brokerage business with various Brokers on behalf
of its clients (including the Funds) over a certain time period. Invesco determines target levels based upon the following factors, among
others: (1) the execution services provided by the Broker; and (2) the research services provided by the Broker. Portfolio transactions
may be effected through Brokers that recommend the Funds to their clients, or that act as agent in the purchase of a Fund’s shares
for their clients, provided that Invesco or the Sub-Advisers believe such Brokers provide best execution and such transactions are executed
in compliance with Invesco’s policy against using directed brokerage to compensate Brokers for promoting or selling Invesco Fund
shares. Invesco and the Sub-Advisers will not enter into a binding commitment with Brokers to place trades with such Brokers involving
brokerage commissions in precise amounts.
As
noted above, under MiFID II, European Union investment advisers, including Invesco Deutschland and Invesco
Asset Management, are not permitted to use Soft Dollar Products to pay for research from brokers but rather must pay for research out
of their own profit and loss or have research costs paid by clients through research payment accounts that are funded by a specific client
research charge or the research component of trade orders. Such payments for research must be unbundled from the payments for execution.
As a result, Invesco Deutschland and Invesco Asset Management are restricted from using Soft Dollar Products in managing the Invesco Funds
that they sub-advise.
Directed
Brokerage (Research Services)
Directed
brokerage (research services) paid by each of the Funds during the last
fiscal year or period, as applicable, ended December 31 are found in Appendix K.
Affiliated
Transactions
The
Adviser or Sub-Adviser may place trades with Invesco Capital Markets, Inc. (ICMI), a broker-dealer with
whom it is affiliated, provided the Adviser or Sub-Adviser determines that ICMI’s trade execution abilities and costs are at least
comparable to those of non-affiliated brokerage firms with which the Adviser or Sub-Adviser could otherwise place similar trades. ICMI
receives brokerage commissions in connection with effecting trades for the Funds and, therefore, use of ICMI presents a conflict of interest
for the Adviser or Sub-Adviser. Trades placed through ICMI, including the brokerage commissions paid to ICMI, are subject to procedures
adopted by the Board.
Brokerage
commissions on affiliated transactions paid by the Funds during the last three fiscal years or periods,
as applicable, ended December 31 are found in Appendix J.
110
Regular
Brokers
Information
concerning the Funds' acquisition of securities of their brokers during the last fiscal year or period,
as applicable, ended December 31 is found in Appendix K.
Allocation
of Portfolio Transactions
Invesco
and the Sub-Advisers manage numerous Invesco Funds and other accounts. Some of these accounts
may have investment objectives similar to the Funds. Occasionally, identical securities will be appropriate for investment by multiple
Invesco Funds or other accounts. However, the position of each account in the same security and the length of time that each account may
hold its investment in the same security may vary. Invesco and the Sub-Adviser will also determine the timing and amount of purchases
for an account based on its cash position. If the purchase or sale of securities is consistent with the investment policies of the Fund(s)
and one or more other accounts, and is considered at or about the same time, Invesco or the Sub-Adviser will allocate transactions in
such securities among the Fund(s) and these accounts on a pro rata basis based on order size or in such other manner believed by Invesco
to be fair and equitable. In determining what is fair and equitable, Invesco or the Sub-Adviser can consider various factors, including
how closely the investment opportunity matches the investment objective and strategy of a Fund or account, the capital available to a
Fund or account, and which portfolio management team sourced the opportunity. Invesco or the Sub-Adviser may combine transactions in accordance
with applicable laws and regulations to obtain the most favorable execution. Simultaneous transactions could, however, adversely affect
a Fund’s ability to obtain or dispose of the full amount of a security which it seeks to purchase or sell.
Allocation
of Initial Public Offering (IPO) Transactions
Certain
of the Invesco Funds or other accounts managed by Invesco may become interested in participating
in IPOs. Purchases of IPOs by one Invesco Fund or other accounts may also be considered for purchase by one or more other Invesco Funds
or accounts. Invesco combines indications of interest for IPOs for all Invesco Funds and accounts participating in purchase transactions
for that IPO. When the full amount of all IPO orders for such Invesco Funds and accounts cannot be filled completely, Invesco shall allocate
such transactions in accordance with the following procedures.
Invesco
or the Sub-Adviser may determine the eligibility of each Invesco Fund and account that seeks to participate
in a particular IPO by reviewing a number of factors, including market capitalization/liquidity suitability and sector/style suitability
of the investment with the Invesco Fund’s or account’s investment objective, policies, strategies and current holdings.
Invesco will allocate securities issued in IPOs to eligible Invesco Funds and accounts on a pro rata basis based on order size.
Invesco
Canada, Invesco Hong Kong and Invesco Japan allocate IPOs on a pro rata basis based on size of
order or in such other manner which they believe is fair and equitable.
Invesco
Asset Management allocates IPOs on a pro rata basis based on account size or in such other manner
believed by Invesco Asset Management to be fair and equitable.
Invesco
Deutschland and Invesco Senior Secured do not subscribe to IPOs.
PURCHASE,
REDEMPTION,
EXCHANGE AND PRICING
OF SHARES
Please
refer to Appendix L for information on Purchase, Redemption,
Exchange and Pricing of Shares.
DIVIDENDS,
DISTRIBUTIONS AND TAX MATTERS
Dividends
and Distributions
The
following discussion of dividends and distributions should be read in connection with the applicable sections
in the Prospectus.
All
dividends and distributions will be automatically reinvested in additional shares of the same class of a Fund
unless the shareholder has requested in writing to receive such dividends and distributions in cash or
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that
they be invested in shares of another Invesco Fund, subject to the terms and conditions set forth in the Prospectus
under the caption “Purchasing Shares - Automatic Dividend and Distribution Investment.” Such dividends and distributions
will be reinvested at the net asset value per share determined on the ex-dividend date.
The
Fund calculates income dividends and capital gain distributions the same way for each class. The amount
of any income dividends per share will differ, however, generally due to any differences in the distribution and service (Rule 12b-1)
fees applicable to the classes, as well as any other expenses attributable to a particular class (Class Expenses). Class Expenses, including
distribution plan expenses, must be allocated to the class for which they are incurred consistent with applicable legal principles under
the 1940 Act.
Tax
Matters
The
following is a summary of certain additional tax considerations generally affecting the Fund and its shareholders
that are not described in the Prospectus. No attempt is made to present a detailed explanation of the tax treatment of the Fund or its
shareholders, and the discussion here and in the Prospectus is not intended as a substitute for careful tax planning.
This
“Tax Matters” section is based on the Code and applicable regulations in effect on the date of this SAI.
Future legislative, regulatory or administrative changes, including provisions of current law that sunset and thereafter no longer apply,
or court decisions may significantly change the tax rules applicable to the Fund and its shareholders. Any of these changes or court decisions
may have a retroactive effect.
This
is for general information only and not tax advice. All investors should consult their own tax advisors
as to the federal, state, local and foreign tax provisions applicable to them.
Taxation
of the Fund. The Fund has elected and intends to qualify (or, if
newly organized, intends to elect and qualify) each year as a “regulated investment company” (sometimes referred to as a
regulated investment company, RIC or fund) under Subchapter M of the Code. If the Fund qualifies, the Fund will not be subject to federal
income tax on the portion of its investment company taxable income (i.e., generally, taxable interest, dividends, net short-term capital
gains and other taxable ordinary income net of expenses without regard to the deduction for dividends paid) and net capital gain (i.e.,
the excess of net long-term capital gains over net short-term capital losses) that it distributes to shareholders.
Qualification
as a regulated investment company. In order to qualify for treatment
as a regulated investment company, the Fund must satisfy the following requirements:
•
Distribution
Requirement – the Fund must distribute an amount equal to the sum of at least 90% of its investment company taxable income and
90% of its net tax-exempt income, if any, for the tax year (certain distributions made by the Fund after the close of its tax year are
considered distributions attributable to the previous tax year for purposes of satisfying this requirement).
•
Income
Requirement – the Fund must derive at least 90% of its gross income from dividends, interest, certain payments with respect to
securities loans, and gains from the sale or other disposition of stock, securities or foreign currencies, or other income (including,
but not limited to, gains from options, futures or forward contracts) derived from its business of investing in such stock, securities
or currencies and net income derived from qualified publicly traded partnerships (QPTPs).
•
Asset
Diversification Test – the Fund must satisfy the following asset diversification test at the close of each quarter of the Fund’s
tax year: (1) at least 50% of the value of the Fund’s assets must consist of cash and cash items, U.S. government securities, securities
of other regulated investment companies, and securities of other issuers (as to which the Fund has not invested more than 5% of the value
of the Fund’s total assets in securities of an issuer and as to which the Fund does not hold more than 10% of the outstanding voting
securities of the issuer); and (2) no more than 25% of the value of the Fund’s total assets may be invested in the securities of
any one issuer (other than U.S. government securities or securities of other regulated investment companies) or of two or more
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issuers
which the Fund controls and which are engaged in the same or similar trades or businesses, or, collectively, in the securities of QPTPs.
In
some circumstances, the character and timing of income realized by the Fund for purposes of the Income
Requirement or the identification of the issuer for purposes of the Asset Diversification Test is uncertain under current law with respect
to a particular investment, and an adverse determination or future guidance by the IRS with respect to such type of investment may adversely
affect the Fund’s ability to satisfy these requirements. See “Tax Treatment of Portfolio Transactions” with respect
to the application of these requirements to certain types of investments. In other circumstances, the Fund may be required to sell portfolio
holdings in order to meet the Income Requirement, Distribution Requirement, or Asset Diversification Test, which may have a negative impact
on the Fund’s income and performance. In lieu of potential disqualification, the Fund is permitted to pay a tax for certain failures
to satisfy the Asset Diversification Test or Income Requirement, which, in general, are limited to those due to reasonable cause and not
willful neglect.
The
Fund may use “equalization accounting” (in lieu of making some cash distributions) in determining the
portion of its income and gains that has been distributed. If the Fund uses equalization accounting, it will allocate a portion of its
undistributed investment company taxable income and net capital gain to redemptions of Fund shares and will correspondingly reduce the
amount of such income and gains that it distributes in cash. However, the Fund intends to make cash distributions for each taxable year
in an aggregate amount that is sufficient to satisfy the Distribution Requirement without taking into account its use of equalization
accounting. If the IRS determines that the Fund’s allocation is improper and that the Fund has under-distributed its income and
gain for any taxable year, the Fund may be liable for federal income and/or excise tax.
If
for any taxable year the Fund does not qualify as a regulated investment company, all of its taxable income
(including its net capital gain) would be subject to tax at the corporate income tax rate without any deduction for dividends paid to
shareholders, and the dividends would be taxable to the shareholders as ordinary income (or possibly as qualified dividend income) to
the extent of the Fund’s current and accumulated earnings and profits. Failure to qualify as a regulated investment company thus
would have a negative impact on the Fund’s income and performance. Subject to savings provisions for certain inadvertent failures
to satisfy the Income Requirement or Asset Diversification Test which, in general, are limited to those due to reasonable cause and not
willful neglect, it is possible that the Fund will not qualify as a regulated investment company in any given tax year. Even if such savings
provisions apply, the Fund may be subject to a monetary sanction of $50,000 or more. Moreover, the Board reserves the right not to maintain
the qualification of the Fund as a regulated investment company if it determines such a course of action to be beneficial to shareholders.
Portfolio
turnover. For investors that hold their Fund shares in a taxable
account, a high portfolio turnover rate (except in a money market fund that maintains a stable net asset value) may result in higher taxes.
This is because a fund with a high turnover rate may accelerate the recognition of capital gains and more of such gains are likely to
be taxable as short-term rather than long-term capital gains in contrast to a comparable fund with a low turnover rate. Any such higher
taxes would reduce the Fund’s after-tax performance. See “Taxation of Fund Distributions — Capital gain dividends”
below. For non-U.S. investors, any such acceleration of the recognition of capital gains that results in more short-term and less long-term
capital gains being recognized by the Fund may cause such investors to be subject to increased U.S. withholding taxes. See “Foreign
Shareholders — U.S. withholding tax at the source” below.
Capital
loss carryovers. The capital losses of the Fund, if any, do not
flow through to shareholders. Rather, the Fund may use its capital losses, subject to applicable limitations, to offset its capital gains
without being required to pay taxes on or distribute to shareholders such gains that are offset by the losses. If the Fund has a “net
capital loss” (that is, capital losses in excess of capital gains), the excess (if any) of the Fund’s net short-term capital
losses over its net long-term capital gains is treated as a short-term capital loss arising on the first day of the Fund’s next
taxable year, and the excess (if any) of the Fund’s net long-term capital losses over its net short-term capital gains is treated
as a long-term capital loss arising on the first day of the Fund’s next taxable year. Any such net capital losses of the Fund that
are not used to offset capital
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gains
may be carried forward indefinitely to reduce any future capital gains realized by the Fund in succeeding taxable
years. The amount of capital losses that can be carried forward and used in any single year is subject to an annual limitation if there
is a more than 50% “change in ownership” of the Fund. An ownership change generally results when shareholders owning 5%
or more of the Fund increase their aggregate holdings by more than 50% over a three-year look-back period. An ownership change could result
in capital loss carryovers being used at a slower rate thereby reducing the Fund’s ability to offset capital gains with those losses.
An increase in the amount of taxable gains distributed to the Fund’s shareholders could result from an ownership change. The Fund
undertakes no obligation to avoid or prevent an ownership change, which can occur in the normal course of shareholder purchases and redemptions
or as a result of engaging in a tax-free reorganization with another fund. Moreover, because of circumstances beyond the Fund’s
control, there can be no assurance that the Fund will not experience, or has not already experienced, an ownership change.
Deferral
of late year losses. The Fund may elect to treat part or all of
any “qualified late year loss” as if it had been incurred in the succeeding taxable year in determining the Fund’s
taxable income, net capital gain, net short-term capital gain, and earnings and profits. The effect of this election is to treat any such
“qualified late year loss” as if it had been incurred in the succeeding taxable year, which may change the timing, amount,
or characterization of Fund distributions (see “Taxation of Fund Distributions — Capital gain dividends” below).
A “qualified late year loss” includes:
(i)
any net capital loss incurred after October 31 of the current taxable year, or, if there is no such loss,
any net long-term capital loss or any net short-term capital loss incurred after October 31 of the current taxable year (post-October
capital losses); and
(ii)
the sum of (1) the excess, if any, of (a) specified losses incurred after October 31 of the current taxable
year, over (b) specified gains incurred after October 31 of the current taxable year and (2) the excess, if any, of (a) ordinary losses
incurred after December 31 of the current taxable year, over (b) the ordinary income incurred after December 31 of the current taxable
year.
The
terms “specified losses” and “specified gains” mean ordinary losses and gains from the sale, exchange,
or other disposition of property (including the termination of a position with respect to such property), foreign currency losses and
gains, and losses and gains resulting from holding stock in a passive foreign investment company (PFIC) for which a mark-to-market election
is in effect. The terms “ordinary losses” and “ordinary income” mean other ordinary losses and income that
are not described in the preceding sentence.
Special
rules apply to a fund with a fiscal year ending in November or December that elects to use its taxable
year for determining its capital gain net income for excise tax purposes.
Undistributed
capital gains. The Fund may retain or distribute to shareholders
its net capital gain for each taxable year. The Fund currently intends to distribute net capital gains. If the Fund elects to retain its
net capital gain, the Fund will be taxed thereon (except to the extent of any available capital loss carryovers) at the corporate income
tax rate. If the Fund elects to retain its net capital gain, it is expected that the Fund also will elect to have shareholders treated
as if each received a distribution of its pro rata share of such gain, with the result that each shareholder will be required to report
its pro rata share of such gain on its tax return as long-term capital gain, will receive a refundable tax credit for its pro rata share
of tax paid by the Fund on the gain and will increase the tax basis for its shares by an amount equal to the deemed distribution less
the tax credit.
Asset
allocation funds. If the Fund is a fund of funds, asset allocation
fund, or a feeder fund in a master-feeder structure (collectively referred to as a “fund of funds” which invests in one
or more underlying funds taxable as regulated investment companies) distributions by the underlying funds, redemptions of shares in the
underlying funds and changes in asset allocations may result in taxable distributions to shareholders of ordinary income or capital gains.
A fund of funds (other than a feeder fund in a master-feeder structure) generally will not be able currently to offset gains realized
by one underlying fund in which the fund of funds invests against losses realized by another underlying fund. If shares of an underlying
fund are purchased within 30 days before or after redeeming at a loss other shares of that underlying fund (whether pursuant to a
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rebalancing
of the Fund’s portfolio or otherwise), all or a part of the loss will not be deductible by the Fund and instead
will increase its basis for the newly purchased shares. Also, except with respect to a qualified fund of funds, a fund of funds (a) is
not eligible to pass-through to shareholders foreign tax credits from an underlying fund that pays foreign income taxes and (b) is not
eligible to pass-through to shareholders exempt-interest dividends from an underlying fund. A qualified fund of funds, i.e., a fund at
least 50 percent of the value of the total assets of which (at the close of each quarter of the taxable year) is represented by interests
in other RICs, is eligible to pass-through to shareholders (a) foreign tax credits and (b) exempt-interest dividends. Also a fund of funds,
whether or not it is a qualified fund of funds, is eligible to pass-through to shareholders qualified dividends earned by an underlying
fund(see "Taxation of Fund Distributions ― Qualified dividend income for individuals" and "― Corporate dividends-received
deduction" below). However, dividends paid to shareholders by a fund of funds from interest earned by an underlying fund on U.S. government
obligations are unlikely to be exempt from state and local income tax.
Federal
excise tax. To avoid a 4% non-deductible excise tax, the Fund must
distribute by December 31 of each year an amount equal to at least: (1) 98% of its ordinary income for the calendar year, (2) 98.2% of
capital gain net income (the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges)
for the one-year period ended on October 31 of such calendar year (or, at the election of a regulated investment company having a taxable
year ending November 30 or December 31, for its taxable year), and (3) any prior year undistributed ordinary income and capital gain net
income. The Fund may elect to defer to the following year any net ordinary loss incurred for the portion of the calendar year which is
after the beginning of the Fund’s taxable year. Also, the Fund will defer any “specified gain” or “specified
loss” which would be properly taken into account for the portion of the calendar after October 31. Any net ordinary loss, specified
gain, or specified loss deferred shall be treated as arising on January 1 of the following calendar year. Generally, the Fund may make
sufficient distributions to avoid liability for federal income and excise tax, but can give no assurances that all or a portion of such
liability will be avoided. In addition, under certain circumstances temporary timing or permanent differences in the realization of income
and expense for book and tax purposes can result in the Fund having to pay an excise tax.
Foreign
income tax. Investment income received by the Fund from sources
within foreign countries may be subject to foreign income tax withheld at the source, and the amount of tax withheld generally will be
treated as an expense of the Fund. The United States has entered into tax treaties with many foreign countries that entitle the Fund to
a reduced rate of, or exemption from, tax on such income. Some countries require the filing of a tax reclaim or other forms to receive
the benefit of the reduced tax rate; whether or when the Fund will receive the tax reclaim is within the control of the individual country.
Information required on these forms may not be available such as shareholder information; therefore, the Fund may not receive the reduced
treaty rates or potential reclaims. Other countries have conflicting and changing instructions and restrictive timing requirements which
may cause the Fund not to receive the reduced treaty rates or potential reclaims. Other countries may subject capital gains realized by
the Fund on sale or disposition of securities of that country to taxation. These and other factors may make it difficult for the Fund
to determine in advance the effective rate of tax on its investments in certain countries. Under certain circumstances, the Fund may elect
to pass-through certain eligible foreign income taxes paid by the Fund to shareholders, although it reserves the right not to do so. If
the Fund makes such an election and obtains a refund of foreign taxes paid by the Fund in a prior year, the Fund may be eligible to reduce
the amount of foreign taxes reported by the Fund to its shareholders, generally by the amount of the foreign taxes refunded, for the year
in which the refund is received. Certain foreign taxes imposed on the Fund's investments, such as a foreign financial transaction tax,
may not be creditable against U.S. income tax liability or eligible for pass through by the Fund to its shareholders.
As
a result of several court cases, in certain countries across the European Union, the Fund may have filed
additional tax reclaims for previously withheld taxes on dividends earned in those countries ("EU reclaims"). For U.S. income tax purposes,
EU reclaims plus interest received by the Fund, if any, reduce the amount of foreign taxes Fund shareholders can use as tax deductions
or credits on their income tax returns, if any. Any interest received that offsets such foreign taxes is required to be reported to the
shareholder as additional dividend income from the Fund and included in the shareholder's gross income. In the event that
115
EU
reclaims received by the Fund during a fiscal year exceed foreign withholding taxes paid by the Fund, and the
Fund previously passed through to its shareholders foreign taxes incurred by the Fund to be used as a credit or deduction on a shareholder's
income tax return, the Fund will enter into a closing agreement with the IRS in order to pay the associated tax liability on behalf of
the Fund's shareholders.
Taxation
of Fund Distributions. The Fund anticipates distributing substantially
all of its investment company taxable income and net capital gain for each taxable year. Distributions by the Fund will be treated in
the manner described below regardless of whether such distributions are paid in cash or reinvested in additional shares of the Fund (or
of another Fund). The Fund will send you information annually as to the federal income tax consequences of distributions made (or
deemed made) during the year.
Distributions
of ordinary income. The Fund receives income generally in the form
of dividends and/or interest on its investments. The Fund may also recognize ordinary income from other sources, including, but not limited
to, certain gains on foreign currency-related transactions. This income, less expenses incurred in the operation of the Fund, constitutes
the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor, distributions
of net investment income generally are taxable as ordinary income to the extent of the Fund’s earnings and profits. In the case
of a Fund whose strategy includes investing in stocks of corporations, a portion of the income dividends paid to you may be qualified
dividends eligible to be taxed at reduced rates.
Capital
gain dividends. Taxes on distributions of capital gains are determined
by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned his or her shares. In general,
the Fund will recognize long-term capital gain or loss on the sale or other disposition of assets it has owned for more than one year,
and short-term capital gain or loss on investments it has owned for one year or less. Distributions of net capital gain (the excess of
net long-term capital gain over net short-term capital loss) that are properly reported by the Fund to shareholders as capital gain dividends
generally will be taxable to a shareholder receiving such distributions as long-term capital gain. Long-term capital gain rates applicable
to individuals are 0%, 15%, 20% or 25% depending on the nature of the capital gain and the individual’s taxable income.
Distributions of net short-term capital gains for a taxable year in excess of net long-term capital losses for such taxable year generally
will be taxable to a shareholder receiving such distributions as ordinary income. Invesco Government Money Market Fund and Invesco Oppenheimer
Government Money Market Fund do not expect to realize any long-term capital gains and losses.
Qualified
dividend income for individuals. Ordinary income dividends reported
by the Fund to shareholders as derived from qualified dividend income will be taxed in the hands of individuals and other noncorporate
shareholders at the rates applicable to long-term capital gain. Qualified dividend income means dividends paid to the Fund (a) by domestic
corporations, (b) by foreign corporations that are either (i) incorporated in a possession of the United States, or (ii) are eligible
for benefits under certain income tax treaties with the United States that include an exchange of information program, or (c) with respect
to stock of a foreign corporation that is readily tradable on an established securities market in the United States. Both the Fund and
the investor must meet certain holding period requirements to qualify Fund dividends for this treatment. Income derived from investments
in derivatives, fixed-income securities, U.S. REITs, PFICs, and income received “in lieu of” dividends in a securities lending
transaction generally is not eligible for treatment as qualified dividend income. If the qualifying dividend income received by the Fund
is equal to 95% (or a greater percentage) of the Fund’s gross income (exclusive of net capital gain) in any taxable year, all of
the ordinary income dividends paid by the Fund will be qualifying dividend income.
Qualified
REIT dividends. Under the Tax Cuts and Jobs Act “qualified
REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and portions of REIT dividends designated as qualified
dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers. This deduction, if allowed in full, equates to
a maximum effective tax rate of 29.6% (37% top rate applied to income after 20% deduction). A Fund may choose to report the special character
of “qualified REIT dividends” to a shareholder, provided both the Fund and a shareholder meet certain holding period requirements
with respect to their shares. A noncorporate shareholder receiving such dividends would treat them as eligible for the 20% deduction,
provided the RIC shares were held by the shareholder for more than 45 days during the 91-day period
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beginning
on the date that is 45 days before the date on which the shares become ex-dividend with respect to such
dividend. The amount of a RIC’s dividends eligible for the 20% deduction for a taxable year is limited to the excess of the RIC’s
qualified REIT dividends for the taxable year over allocable expenses.
Corporate
dividends-received deduction. Ordinary income dividends reported
by the Fund to shareholders as derived from qualified dividends from domestic corporations will qualify for the 50% dividends-received
deduction generally available to corporations. The availability of the dividends-received deduction is subject to certain holding period
and debt financing restrictions imposed under the Code on the corporation claiming the deduction. Income derived by the Fund from investments
in derivatives, fixed-income and foreign securities generally is not eligible for this treatment.
Return
of capital distributions. Distributions by the Fund that are not
paid from earnings and profits will be treated as a return of capital to the extent of (and in reduction of) the shareholder’s
tax basis in his shares; any excess will be treated as gain from the sale of his shares. Thus, the portion of a distribution that constitutes
a return of capital will decrease the shareholder’s tax basis in his Fund shares (but not below zero), and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the shareholder for tax purposes on the later sale
of such Fund shares. Return of capital distributions can occur for a number of reasons including, among others, the Fund over-estimates
the income to be received from certain investments such as those classified as partnerships or equity REITs. See “Tax
Treatment of Portfolio Transactions – Investments in U.S. REITs”.
Impact
of realized but undistributed income and gains, and net unrealized appreciation of portfolio securities.
At the time of your purchase of shares (except in a money market fund that maintains a stable net asset value), the Fund’s net
asset value may reflect undistributed income, undistributed capital gains, or net unrealized appreciation of portfolio securities held
by the Fund. A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable and
would be taxed as either ordinary income (some portion of which may be taxed as qualified dividend income) or capital gain unless you
are investing through a tax-advantaged arrangement, such as a 401(k) plan or an individual retirement account. The Fund may be able to
reduce the amount of such distributions by utilizing its capital loss carryovers, if any.
Pass-through
of foreign tax credits. If more than 50% of the value of the Fund’s
total assets at the end of a fiscal year is invested in foreign securities, or if the Fund is a qualified fund of funds (i.e., a fund
at least 50 percent of the value of the total assets of which, at the close of each quarter of the taxable year, is represented by interests
in other RICs), the Fund may elect to “pass-through” to the Fund’s shareholders the amount of foreign income tax
paid by the Fund (the Foreign Tax Election) in lieu of deducting such amount in determining its investment company taxable income. Pursuant
to the Foreign Tax Election, shareholders will be required (i) to include in gross income, even though not actually received, their respective
pro-rata shares of the foreign income tax paid by the Fund that are attributable to any distributions they receive; and (ii) either to
deduct their pro-rata share of foreign tax in computing their taxable income or to use it (subject to various Code limitations) as a foreign
tax credit against federal income tax (but not both). No deduction for foreign tax may be claimed by a noncorporate shareholder who does
not itemize deductions or who is subject to the alternative minimum tax. Shareholders may be unable to claim a credit for the full amount
of their proportionate shares of the foreign income tax paid by the Fund due to certain limitations that may apply. The Fund reserves
the right not to pass-through to its shareholders the amount of foreign income taxes paid by the Fund. Additionally, any foreign tax withheld
on payments made “in lieu of” dividends or interest will not qualify for the pass-through of foreign tax credits to shareholders.
See “Tax Treatment of Portfolio Transactions — Securities lending” below.
Tax
credit bonds. If the Fund holds, directly or indirectly, one or
more “tax credit bonds” (including build America bonds, clean renewable energy bonds and qualified tax credit bonds) on
one or more applicable dates during a taxable year, the Fund may elect to permit its shareholders to claim a tax credit on their income
tax returns equal to each shareholder’s proportionate share of tax credits from the applicable bonds that otherwise would be allowed
to the Fund. In such a case, shareholders must include in gross income (as interest) their proportionate share of the income attributable
to their proportionate share of those offsetting tax
117
credits.
A shareholder’s ability to claim a tax credit associated with one or more tax credit bonds may be subject
to certain limitations imposed by the Code. (Under the Tax Cuts and Jobs Act, build America bonds, clean renewable energy bonds and certain
other qualified bonds may no longer be issued after December 31, 2017.) Even if the Fund is eligible to pass-through tax credits to shareholders,
the Fund may choose not to do so.
U.S.
government interest. Income
earned on certain U.S. government obligations is exempt from state and local personal income taxes if earned directly by you. States also
grant tax-free status to dividends paid to you from interest earned on direct obligations of the U.S. government, subject in some states
to minimum investment or reporting requirements that must be met by the Fund. Income on investments by the Fund in certain other obligations,
such as repurchase agreements collateralized by U.S. government obligations, commercial paper and federal agency-backed obligations (e.g.,
GNMA or FNMA obligations), generally does not qualify for tax-free treatment. The rules on exclusion of this income are different for
corporations. If the Fund is a fund of funds, see “Taxation of the Fund — Asset allocation funds.”
Dividends
declared in December and paid in January. Ordinarily, shareholders
are required to take distributions by the Fund into account in the year in which the distributions are made. However, dividends declared
in October, November or December of any year and payable to shareholders of record on a specified date in such a month will be deemed
to have been received by the shareholders (and made by the Fund) on December 31 of such calendar year if such dividends are actually paid
in January of the following year. Shareholders will be advised annually as to the U.S. federal income tax consequences of distributions
made (or deemed made) during the year in accordance with the guidance that has been provided by the IRS.
Medicare
tax. A 3.8% Medicare tax is imposed on net investment income earned
by certain individuals, estates and trusts. “Net investment income,” for these purposes, means investment income, including
ordinary dividends and capital gain distributions received from the Fund and net gains from redemptions or other taxable dispositions
of Fund shares, reduced by the deductions properly allocable to such income. In the case of an individual, the tax will be imposed
on the lesser of (1) the shareholder’s net investment income or (2) the amount by which the shareholder’s modified adjusted
gross income exceeds $250,000 (if the shareholder is married and filing jointly or a surviving spouse), $125,000 (if the shareholder is
married and filing separately) or $200,000 (in any other case). This Medicare tax, if applicable, is reported by you on, and paid
with, your federal income tax return. Net investment income does not include exempt-interest dividends.
Sale
or Redemption of Fund Shares. A shareholder will recognize gain
or loss on the sale or redemption of shares of the Fund in an amount equal to the difference between the proceeds of the sale or redemption
and the shareholder’s adjusted tax basis in the shares. If you owned your shares as a capital asset, any gain or loss that you
realize will be considered capital gain or loss and will be long-term capital gain or loss if the shares were held for longer than one
year. Capital losses in any year are deductible only to the extent of capital gains plus, in the case of a noncorporate taxpayer, $3,000
of ordinary income.
Tax
basis information. The Fund is required to report to you and the
IRS annually on Form 1099 B the cost basis of shares purchased or acquired on or after January 1, 2012 where the cost basis of the shares
is known by the Fund (referred to as covered shares) and which are disposed of after that date. However, cost basis reporting is not required
for certain shareholders, including shareholders investing in the Fund through a tax-advantaged retirement account, such as a 401(k) plan
or an individual retirement account, or shareholders investing in a money market fund that maintains a stable net asset value. When required
to report cost basis, the Fund will calculate it using the Fund’s default method of average cost, unless you instruct the Fund
to use a different calculation method. In general, average cost is the total cost basis of all your shares in an account divided by the
total number of shares in the account. To determine whether short-term or long-term capital gains taxes apply, the IRS presumes you redeem
your oldest shares first.
The
IRS permits the use of several methods to determine the cost basis of mutual fund shares. The method
used will determine which specific shares are deemed to be sold when there are multiple purchases on different dates at differing share
prices, and the entire position is not sold at one time. The Fund does not recommend any particular method of determining cost basis,
and the use of other methods may result in more favorable tax consequences for some shareholders. It is important that you consult with
your tax advisor to
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determine
which method is best for you and then notify the Fund if you intend to utilize a method other than average
cost for covered shares.
In
addition to the Fund’s default method of average cost, other cost basis methods offered by Invesco, which
you may elect to apply to covered shares, include:
•
First-In,
First-Out — shares acquired first in the account are the first shares depleted.
•
Last-In,
First-Out — shares acquired last in the account are the first shares depleted.
•
High
Cost — shares acquired with the highest cost per share are the first shares depleted.
•
Low
Cost — shares acquired with the lowest cost per share are the first shares depleted.
•
Loss/Gain
Utilization — depletes shares with losses before gains, consistent with the objective of minimizing taxes. For shares that yield
a loss, shares owned one year or less (short-term) will be depleted ahead of shares owned more than one year (long-term). For gains, long-term
shares will be depleted ahead of short-term gains.
•
Specific
Lot Identification — shareholder selects which lots to deplete at time of each disposition. Transaction amount must be in shares.
If insufficient shares are identified at the time of disposition, then a secondary default method of first-in, first-out will be applied.
You
may elect any of the available methods detailed above for your covered shares. If you do not notify the
Fund of your elected cost basis method, the default method of average cost will be applied to your covered shares upon redemption. The
cost basis for covered shares will be calculated separately from any “noncovered shares” (defined below) you may own. You
may change or revoke the use of the average cost method and revert to another cost basis method if you notify the Fund by the date of
the first sale, exchange, or other disposition of your covered shares. In addition, you may change to another cost basis method at any
time by notifying the Fund, but only for shares acquired after the date of the change (the change is prospective). The basis of the shares
that were averaged before the change will remain averaged after the date of the change.
The
Fund may also provide Fund shareholders (but not the IRS) with information concerning the average cost
basis of their shares purchased prior to January 1, 2012 (noncovered shares) in order to assist you with the calculation of gain or loss
from a sale or redemption of noncovered shares. With the exception of the specific lot identification method, Invesco first depletes noncovered
shares in first-in, first-out order before applying your elected method to your remaining covered shares. If you want to deplete your
shares in a different order then you must elect specific lot identification and choose the lots you wish to deplete first. Shareholders
that use the average cost method for noncovered shares must make the election to use the average cost method for these shares on their
federal income tax returns in accordance with Treasury regulations. This election for noncovered shares cannot be made by notifying the
Fund.
The
Fund will compute and report the cost basis of your Fund shares sold or exchanged by taking into account
all of the applicable adjustments to cost basis and holding periods as required by the Code and Treasury regulations for purposes of reporting
these amounts to you and, in the case of covered shares, to the IRS. However, the Fund is not required to, and in many cases the Fund
does not possess the information to, take all possible basis, holding period or other adjustments into account in reporting cost basis
information to you. Therefore, shareholders should carefully review the cost basis information provided by the Fund, whether this information
is provided pursuant to compliance with cost basis reporting requirements for shares acquired on or after January 1, 2012, or is provided
by the Fund as a service to shareholders for shares acquired prior to that date, and make any additional basis, holding period or other
adjustments that are required by the Code and Treasury regulations when reporting these amounts on their federal income tax returns. Shareholders
remain solely responsible for complying with all federal income tax laws when filing their federal income tax returns.
If
you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with
respect to the reporting of cost basis and available elections for your account. For more information about
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the
cost basis methods offered by Invesco, please refer to the Tax Center located under the Account
Access & Forms menu of our website at www.invesco.com/us.
Wash
sale rule. All or a portion of any loss so recognized may be deferred
under the wash sale rules if the shareholder purchases other shares of the Fund within 30 days before or after the sale or redemption.
Any loss disallowed under these rules will be added to your tax basis in the new Shares.
Sales
at a loss within six months of purchase. Any capital loss arising
from the sale or redemption of shares held for six months or less will be treated as a long-term capital loss to the extent of the amount
of capital gain dividends received on such shares.
Deferral
of basis ― any class that bears a front-end sales load.
If a shareholder (a) incurs a sales load in acquiring shares of the Fund, (b) disposes of such shares less than 91 days after they are
acquired, and (c) subsequently acquires shares of the Fund or another Fund by January 31 of the calendar year following the calendar year
in which the disposition of the original shares occurred at a reduced sales load pursuant to a right to reinvest at such reduced sales
load acquired in connection with the acquisition of the shares disposed of, then the sales load on the shares disposed of (to the extent
of the reduction in the sales load on the shares subsequently acquired) shall not be taken into account in determining gain or loss on
the shares disposed of, but shall be treated as incurred on the acquisition of the shares subsequently acquired. The wash sale rules may
also limit the amount of loss that may be taken into account on disposition after such adjustment.
Conversion
of shares of the Fund into other shares of the same Fund. The conversion
of shares of one class of the Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no
gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms of the
class or is initiated by the shareholder. Shareholders should consult their tax advisors regarding the state and local tax consequences
of a conversion of shares.
Exchange
of shares of the Fund for shares of another Fund. The exchange
of shares in one Fund for shares of another Fund is taxable for federal income tax purposes and the exchange will be reported as a taxable
sale. An exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund
and is effectuated on the same day as the redemption. Shareholders should consult their tax advisors regarding the state and local tax
consequences of an exchange of shares.
Reportable
transactions. Under Treasury regulations, if a shareholder recognizes
a loss with respect to the Fund’s shares of $2 million or more for an individual shareholder or $10 million or more for a corporate
shareholder (or certain greater amounts over a combination of years), the shareholder must file with the IRS a disclosure statement on
Form 8886. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer’s
treatment of the loss is proper. Shareholders should consult their tax advisors to determine the applicability of these regulations in
light of their individual circumstances.
Tax
Treatment of Portfolio Transactions. Set forth below is a general
description of the tax treatment of certain types of securities, investment techniques and transactions that may apply to a fund. This
section should be read in conjunction with the discussion under “Description of the Funds and their Investments and Risks —
Investment Strategies and Risks” for a detailed description of the various types of securities and investment techniques that apply
to the Fund.
In
general. In general, gain or loss recognized by a fund on the sale
or other disposition of portfolio investments will be a capital gain or loss. Such capital gain and loss may be long-term or short-term
depending, in general, upon the length of time a particular investment position is maintained and, in some cases, upon the nature of the
transaction. Property held for more than one year generally will be eligible for long-term capital gain or loss treatment. The application
of certain rules described below may serve to alter the manner in which the holding period for a security is determined or may otherwise
affect the characterization as long-term or short-term, and also the timing of the realization and/or character, of certain gains or losses.
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Certain
fixed-income investments. Gain recognized on the disposition of
a debt obligation purchased by a fund at a market discount (generally, at a price less than its principal amount) will be treated as ordinary
income to the extent of the portion of the market discount that accrued during the period of time the fund held the debt obligation unless
the fund made a current inclusion election to accrue market discount into income as it accrues. If a fund purchases a debt obligation
(such as a zero coupon security or pay-in-kind security) that was originally issued at a discount, the fund generally is required to include
in gross income each year the portion of the original issue discount that accrues during such year. Therefore, a fund’s investment
in such securities may cause the fund to recognize income and make distributions to shareholders before it receives any cash payments
on the securities. To generate cash to satisfy those distribution requirements, a fund may have to sell portfolio securities that it otherwise
might have continued to hold or to use cash flows from other sources such as the sale of fund shares.
Investments
in debt obligations that are at risk of or in default present tax issues for a fund.
Tax rules are not entirely clear about issues such as whether and to what extent a fund should recognize market discount on a debt obligation,
when a fund may cease to accrue interest, original issue discount or market discount, when and to what extent a fund may take deductions
for bad debts or worthless securities and how a fund should allocate payments received on obligations in default between principal and
income. These and other related issues will be addressed by a fund in order to ensure that it distributes sufficient income to preserve
its status as a regulated investment company.
Options,
futures, forward contracts, swap agreements and hedging transactions.
In general, option premiums received by a fund are not immediately included in the income of the fund. Instead, the premiums are recognized
when the option contract expires, the option is exercised by the holder, or the fund transfers or otherwise terminates the option (e.g.,
through a closing transaction). If an option written by a fund is exercised and the fund sells or delivers the underlying stock, the fund
generally will recognize capital gain or loss equal to (a) the sum of the strike price and the option premium received by the fund minus
(b) the fund’s basis in the stock. Such gain or loss generally will be short-term or long-term depending upon the holding period
of the underlying stock. If securities are purchased by a fund pursuant to the exercise of a put option written by it, the fund generally
will subtract the premium received from its cost basis in the securities purchased. The gain or loss with respect to any termination of
a fund’s obligation under an option other than through the exercise of the option and related sale or delivery of the underlying
stock generally will be short-term gain or loss depending on whether the premium income received by the fund is greater or less than the
amount paid by the fund (if any) in terminating the transaction. Thus, for example, if an option written by a fund expires unexercised,
the fund generally will recognize short-term gain equal to the premium received.
The
tax treatment of certain futures contracts entered into by a fund as well as listed non-equity options written
or purchased by the fund on U.S. exchanges (including options on futures contracts, broad-based equity indices and debt securities) may
be governed by section 1256 of the Code (section 1256 contracts). Gains or losses on section 1256 contracts generally are considered 60%
long-term and 40% short-term capital gains or losses (60/40), although certain foreign currency gains and losses from such contracts may
be treated as ordinary in character. Also, any section 1256 contracts held by a fund at the end of each taxable year (and, for purposes
of the 4% excise tax, on certain other dates as prescribed under the Code) are “marked-to-market” with the result that unrealized
gains or losses are treated as though they were realized and the resulting gain or loss is treated as ordinary or 60/40 gain or loss,
as applicable. Section 1256 contracts do not include any interest rate swap, currency swap, basis swap, interest rate cap, interest rate
floor, commodity swap, equity swap, equity index swap, credit default swap or similar agreement.
In
addition to the special rules described above in respect of options and futures transactions, a fund’s transactions
in other derivative instruments (including options, forward contracts and swap agreements) as well as its other hedging, short sale, or
similar transactions, may be subject to one or more special tax rules (including the constructive sale, notional principal contract, straddle,
wash sale and short sale rules). These rules may affect whether gains and losses recognized by a fund are treated as ordinary or capital
or as short-term or long-term, accelerate the recognition of income or gains to the fund, defer losses to the fund, and cause adjustments
in the holding periods of the fund’s securities. These rules, therefore, could affect the amount, timing and/or character of distributions
to shareholders. Moreover, because the tax rules applicable
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to
derivative financial instruments are in some cases uncertain under current law, an adverse determination or future
guidance by the IRS with respect to these rules (which determination or guidance could be retroactive) may affect whether a fund has made
sufficient distributions and otherwise satisfied the relevant requirements to maintain its qualification as a regulated investment company
and avoid a fund-level tax.
Certain
of a fund’s investments in derivatives and foreign currency-denominated instruments, and the fund’s
transactions in foreign currencies and hedging activities, may produce a difference between its book income and its taxable income. If
a fund’s book income is less than the sum of its taxable income and net tax-exempt income (if any), the fund could be required
to make distributions exceeding book income to qualify as a regulated investment company. If a fund’s book income exceeds the sum
of its taxable income and net tax-exempt income (if any), the distribution of any such excess will be treated as (i) a dividend to the
extent of the fund’s remaining earnings and profits (including current earnings and profits arising from tax-exempt income, reduced
by related deductions), (ii) thereafter, as a return of capital to the extent of the recipient’s basis in the shares, and (iii)
thereafter, as gain from the sale or exchange of a capital asset.
Foreign
currency transactions. A fund’s transactions in foreign
currencies, foreign currency-denominated debt obligations and certain foreign currency options, futures contracts and forward contracts
(and similar instruments) may give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the
value of the foreign currency concerned. This treatment could increase or decrease a fund’s ordinary income distributions to you,
and may cause some or all of the fund’s previously distributed income to be classified as a return of capital. In certain cases,
a fund may make an election to treat such gain or loss as capital.
PFIC
investments. A fund may invest in securities of foreign companies
that may be classified under the Code as PFICs. In general, a foreign company is classified as a PFIC if at least one-half of its assets
constitute investment-type assets or 75% or more of its gross income is investment-type income. When investing in PFIC securities, a fund
intends to mark-to-market these securities under certain provisions of the Code and recognize any unrealized gains as ordinary income
at the end of the fund’s fiscal and excise tax years. Deductions for losses are allowable only to the extent of any current or
previously recognized gains. These gains (reduced by allowable losses) are treated as ordinary income that a fund is required to distribute,
even though it has not sold or received dividends from these securities. You should also be aware that the designation of a foreign security
as a PFIC security will cause its income dividends to fall outside of the definition of qualified foreign corporation dividends. These
dividends generally will not qualify for the reduced rate of taxation on qualified dividends when distributed to you by a fund. Foreign
companies are not required to identify themselves as PFICs. Due to various complexities in identifying PFICs, a fund can give no assurances
that it will be able to identify portfolio securities in foreign corporations that are PFICs in time for the fund to make a mark-to-market
election. If a fund is unable to identify an investment as a PFIC and thus does not make a mark-to-market election, the fund may be subject
to U.S. federal income tax on a portion of any “excess distribution” or gain from the disposition of such shares even if
such income is distributed as a taxable dividend by the fund to its shareholders. Additional charges in the nature of interest may be
imposed on a fund in respect of deferred taxes arising from such distributions or gains.
Investments
in non-U.S. REITs. While non-U.S. REITs often use complex acquisition
structures that seek to minimize taxation in the source country, an investment by a fund in a non-U.S. REIT may subject the fund, directly
or indirectly, to corporate taxes, withholding taxes, transfer taxes and other indirect taxes in the country in which the real estate
acquired by the non-U.S. REIT is located. The fund's pro rata share of any such taxes will reduce the fund's return on its investment.
The fund's investment in a non-U.S. REIT may be considered an investment in a PFIC, as discussed above in “Tax Treatment
of Portfolio Transactions – PFIC investments.” Additionally, foreign withholding taxes on distributions from the non-U.S.
REIT may be reduced or eliminated under certain tax treaties, as discussed above in “Taxation of the Fund – Foreign income
tax.” Also, the fund in certain limited circumstances may be required to file an income tax return in the source country and pay
tax on any gain realized from its investment in the non-U.S. REIT under rules similar to those in the United States which tax foreign
persons on gain realized from dispositions of interests in U.S. real estate.
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Investments
in U.S. REITs. A U.S. REIT is not subject to federal income tax
on the income and gains it distributes to shareholders. Dividends paid by a U.S. REIT, other than capital gain distributions, will be
taxable as ordinary income up to the amount of the U.S. REIT’s current and accumulated earnings and profits. Capital gain dividends
paid by a U.S. REIT to a fund will be treated as long-term capital gains by the fund and, in turn, may be distributed by the fund to its
shareholders as a capital gain distribution. Because of certain noncash expenses, such as property depreciation, an equity U.S.
REIT’s cash flow may exceed its taxable income. The equity U.S. REIT, and in turn a fund, may distribute this excess cash
to shareholders in the form of a return of capital distribution. However, if a U.S. REIT is operated in a manner that fails to qualify
as a REIT, an investment in the U.S. REIT would become subject to double taxation, meaning the taxable income of the U.S. REIT would be
subject to federal income tax at the corporate income tax rate without any deduction for dividends paid to shareholders and the dividends
would be taxable to shareholders as ordinary income (or possibly as qualified dividend income) to the extent of the U.S. REIT’s
current and accumulated earnings and profits. Also, see “Tax Treatment of Portfolio Transactions — Investment in taxable
mortgage pools (excess inclusion income)” and “Foreign Shareholders — U.S. withholding tax at the source”
with respect to certain other tax aspects of investing in U.S. REITs.
Investment
in taxable mortgage pools (excess inclusion income). Under a Notice
issued by the IRS, the Code and Treasury regulations to be issued, a portion of a fund’s income from a U.S. REIT that is attributable
to the REIT’s residual interest in a real estate mortgage investment conduit (REMIC) or equity interests in a “taxable mortgage
pool” (referred to in the Code as an excess inclusion) will be subject to federal income tax in all events. The excess inclusion
income of a regulated investment company, such as a fund, will be allocated to shareholders of the regulated investment company in proportion
to the dividends received by such shareholders, with the same consequences as if the shareholders held the related REMIC residual interest
or, if applicable, taxable mortgage pool directly. In general, excess inclusion income allocated to shareholders (i) cannot be offset
by net operating losses (subject to a limited exception for certain thrift institutions), (ii) will constitute unrelated business taxable
income (UBTI) to entities (including qualified pension plans, individual retirement accounts, 401(k) plans, Keogh plans or other tax-exempt
entities) subject to tax on UBTI, thereby potentially requiring such an entity that is allocated excess inclusion income, and otherwise
might not be required to file a tax return, to file a tax return and pay tax on such income, and (iii) in the case of a foreign stockholder,
will not qualify for any reduction in U.S. federal withholding tax. In addition, if at any time during any taxable year a “disqualified
organization” (which generally includes certain cooperatives, governmental entities, and tax-exempt organizations not subject to
tax on UBTI) is a record holder of a share in a regulated investment company, then the regulated investment company will be subject to
a tax equal to that portion of its excess inclusion income for the taxable year that is allocable to the disqualified organization, multiplied
by the corporate income tax rate. The Notice imposes certain reporting requirements upon regulated investment companies that have excess
inclusion income. There can be no assurance that a fund will not allocate to shareholders excess inclusion income.
These
rules are potentially applicable to a fund with respect to any income it receives from the equity interests
of certain mortgage pooling vehicles, either directly or, as is more likely, through an investment in a U.S. REIT. It is unlikely
that these rules will apply to a fund that has a non-REIT strategy.
Investments
in partnerships and QPTPs. For purposes of the Income Requirement,
income derived by a fund from a partnership that is not a QPTP will be treated as qualifying income only to the extent such income is
attributable to items of income of the partnership that would be qualifying income if realized directly by the fund. While the rules are
not entirely clear with respect to a fund investing in a partnership outside a master-feeder structure, for purposes of testing whether
a fund satisfies the Asset Diversification Test, the fund generally is treated as owning a pro rata share of the underlying assets of
a partnership. See “Taxation of the Fund — Qualification as a regulated investment company.” In contrast, different
rules apply to a partnership that is a QPTP. A QPTP is a partnership (a) the interests in which are traded on an established securities
market, (b) that is treated as a partnership for federal income tax purposes, and (c) that derives less than 90% of its income from sources
that satisfy the Income Requirement (e.g., because it invests in commodities). All of the net income derived by a fund from an interest
in a QPTP will be treated as qualifying income but the fund may not invest more than 25% of its total assets in one or more QPTPs. However,
there can be no
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assurance
that a partnership classified as a QPTP in one year will qualify as a QPTP in the next year. Any such
failure to annually qualify as a QPTP might, in turn, cause a fund to fail to qualify as a regulated investment company. Although, in
general, the passive loss rules of the Code do not apply to RICs, such rules do apply to a fund with respect to items attributable to
an interest in a QPTP. Fund investments in partnerships, including in QPTPs, may result in the fund being subject to state, local or foreign
income, franchise or withholding tax liabilities.
If
an MLP is treated as a partnership for U.S. federal income tax purposes (whether or not a QPTP), all or portion
of the dividends received by a fund from the MLP likely will be treated as a return of capital for U.S. federal income tax purposes because
of accelerated deductions available with respect to the activities of such MLPs. Further, because of these accelerated deductions, on
the disposition of interests in such an MLP, a fund likely will realize taxable income in excess of economic gain with respect to those
MLP interests (or if the fund does not dispose of the MLP, the fund could realize taxable income in excess of cash flow with respect to
the MLP in a later period), and the fund must take such income into account in determining whether the fund has satisfied its Distribution
Requirement. A fund may have to borrow or liquidate securities to satisfy its Distribution Requirement and to meet its redemption requests,
even though investment considerations might otherwise make it undesirable for the fund to sell securities or borrow money at such time.
In addition, any gain recognized, either upon the sale of a fund’s MLP interest or sale by the MLP of property held by it, including
in excess of economic gain thereon, treated as so-called “recapture income,” will be treated as ordinary income. Therefore,
to the extent a fund invests in MLPs, fund shareholders might receive greater amounts of distributions from the fund taxable as ordinary
income than they otherwise would in the absence of such MLP investments.
Although
MLPs are generally expected to be treated as partnerships for U.S. federal income tax purposes,
some MLPs may be treated as PFICs or “regular” corporations for U.S. federal income tax purposes. The treatment of particular
MLPs for U.S. federal income tax purposes will affect the extent to which a fund can invest in MLPs and will impact the amount, character,
and timing of income recognized by the Fund.
Investments
in commodities ― structured notes, corporate subsidiary and certain ETFs.
Gains from the disposition of commodities, including precious metals, will neither be considered qualifying income for purposes of satisfying
the Income Requirement nor qualifying assets for purposes of satisfying the Asset Diversification Test. See “Taxation of the Fund
— Qualification as a regulated investment company.” Also, the IRS has issued a revenue ruling which holds that income derived
from commodity-linked swaps is not qualifying income for purposes of the Income Requirement. In a subsequent revenue ruling, as well as
in a number of follow-on private letter rulings (upon which only the fund that received the private letter ruling may rely), the IRS provides
that income from certain alternative investments which create commodity exposure, such as certain commodity-linked or structured notes
or a corporate subsidiary that invests in commodities, may be considered qualifying income under the Code.
However,
the portion of such rulings relating to the treatment of a corporation as a regulated investment company
that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of the 1940 Act was revoked
because of changes in the IRS’s position. (A financial instrument or position that constitutes a security under section 2(a)(36)
of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) Accordingly, a fund may invest
in certain commodity-linked notes relying on an opinion of counsel confirming that income from such investments should be qualifying income
because such commodity-linked notes constitute securities under section 2(a)(36) of the 1940 Act. In addition, a RIC may gain exposure
to commodities through investment in a QPTP, such as an exchange-traded fund or ETF that is classified as a partnership and which invests
in commodities, or through investment in a wholly-owned foreign subsidiary that is treated as a controlled foreign corporation for federal
income tax purposes. Treasury regulations treat “Subpart F” income (defined in Section 951 of the Code to include passive
income such as income from commodity-linked derivatives) as qualifying income, even if a foreign corporation, such as a wholly-owned foreign
subsidiary, does not make a distribution of such income. If a distribution is made, such income will be treated as a dividend by the Funds
to the extent that, under applicable provisions of the Code, there is a distribution out of the earnings and profits of the foreign
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corporation
attributable to the distribution. Accordingly, the extent to which a fund directly invests in commodities
or commodity-linked derivatives may be limited by the Income Requirement and the Asset Diversification Test, which the fund must continue
to satisfy to maintain its status as a regulated investment company. A fund also may be limited in its ability to sell its investments
in commodities, commodity-linked derivatives, and certain ETFs or be forced to sell other investments to generate income due to the Income
Requirement. If a fund does not appropriately limit such investments or if such investments (or the income earned on such investments)
were to be recharacterized for U.S. tax purposes, the fund could fail to qualify as a regulated investment company. In lieu of potential
disqualification, a fund is permitted to pay a tax for certain failures to satisfy the Asset Diversification Test or Income Requirement,
which, in general, are limited to those due to reasonable cause and not willful neglect.
Securities
lending. While securities are loaned out by a fund, the fund generally
will receive from the borrower amounts equal to any dividends or interest paid on the borrowed securities. For federal income tax purposes,
payments made “in lieu of” dividends are not considered dividend income. These distributions will neither qualify for the
reduced rate of taxation for individuals on qualified dividends nor the 50% dividends-received deduction for corporations. Also, any foreign
tax withheld on payments made “in lieu of” dividends or interest will not qualify for the pass-through of foreign tax credits
to shareholders. Additionally, in the case of a fund with a strategy of investing in tax-exempt securities, any payments made “in
lieu of” tax-exempt interest will be considered taxable income to the fund, and thus, to the investors, even though such interest
may be tax-exempt when paid to the borrower.
Investments
in convertible securities. Convertible debt is ordinarily treated
as a “single property” consisting of a pure debt interest until conversion, after which the investment becomes an equity
interest. If the security is issued at a premium (i.e., for cash in excess of the face amount payable on retirement), the creditor-holder
may amortize the premium over the life of the bond. If the security is issued for cash at a price below its face amount, the creditor-holder
must accrue original issue discount in income over the life of the debt. The creditor-holder’s exercise of the conversion privilege
is treated as a nontaxable event. Mandatorily convertible debt (e.g., an exchange-traded note or ETN issued in the form of an unsecured
obligation that pays a return based on the performance of a specified market index, exchange currency, or commodity) is often, but not
always, treated as a contract to buy or sell the reference property rather than debt. Similarly, convertible preferred stock with a mandatory
conversion feature is ordinarily, but not always, treated as equity rather than debt. Dividends received may be qualified dividend income
and eligible for the corporate dividends-received deduction. In general, conversion of preferred stock for common stock of the same corporation
is tax-free. Conversion of preferred stock for cash is a taxable redemption. Any redemption premium for preferred stock that is redeemable
by the issuing company might be required to be amortized under original issue discount principles. A change in the conversion ratio or
conversion price of a convertible security on account of a dividend paid to the issuer’s other shareholders may result in a deemed
distribution of stock to the holders of the convertible security equal to the value of their increased interest in the equity of the issuer.
Thus, an increase in the conversion ratio of a convertible security can be treated as a taxable distribution of stock to a holder of the
convertible security (without a corresponding receipt of cash by the holder) before the holder has converted the security.
Tax
Certification and Backup Withholding. Tax certification and backup
withholding tax laws may require that you certify your tax information when you become an investor in the Fund. For U.S. citizens and
resident aliens, this certification is made on IRS Form W-9. Under these laws, the Fund must withhold a portion of your taxable distributions
and sales proceeds unless you:
•
provide
your correct Social Security or taxpayer identification number;
•
certify
that this number is correct;
•
certify
that you are not subject to backup withholding; and
•
certify
that you are a U.S. person (including a U.S. resident alien).
The
Fund also must withhold if the IRS instructs it to do so. When withholding is required, the amount will be
24% of any distributions or proceeds paid. Backup withholding is not an additional tax. Any amounts
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withheld
may be credited against the shareholder’s U.S. federal income tax liability, provided the appropriate information
is furnished to the IRS. Certain payees and payments are exempt from backup withholding and information reporting.
Non-U.S.
investors have special U.S. tax certification requirements. See “Foreign Shareholders — Tax certification
and backup withholding.”
Foreign
Shareholders. Shareholders who, as to the United States, are nonresident
alien individuals, foreign trusts or estates, foreign corporations, or foreign partnerships (foreign shareholder), may be subject to U.S.
withholding and estate tax and are subject to special U.S. tax certification requirements.
Taxation
of a foreign shareholder depends on whether the income from the Fund is “effectively connected” with
a U.S. trade or business carried on by such shareholder.
U.S.
withholding tax at the source. If the income from the Fund is not
effectively connected with a U.S. trade or business carried on by a foreign shareholder, distributions to such shareholder will be subject
to U.S. withholding tax at the rate of 30% (or lower treaty rate) upon the gross amount of the distribution, subject to certain exemptions
including those for dividends reported by the Fund to shareholders as:
•
exempt-interest
dividends paid by the Fund from its net interest income earned on municipal securities;
•
capital
gain dividends paid by the Fund from its net long-term capital gains (other than those from disposition of a U.S. real property interest),
unless you are a nonresident alien present in the United States for a period or periods aggregating 183 days or more during the calendar
year; and
•
interest-related
dividends paid by the Fund from its qualified net interest income from U.S. sources and short-term capital gain dividends.
However,
the Fund does not intend to utilize the exemptions for interest-related dividends paid and short-term
capital gain dividends paid. Moreover, notwithstanding such exemptions from U.S. withholding at the source, any dividends and distributions
of income and capital gains, including the proceeds from the sale of your Fund shares, will be subject to backup withholding at a rate
of 24% if you fail to properly certify that you are not a U.S. person.
Foreign
shareholders may be subject to U.S. withholding tax at a rate of 30% on the income resulting from
an election to pass-through foreign tax credits to shareholders, but may not be able to claim a credit or deduction with respect to the
withholding tax for the foreign tax treated as having been paid by them.
Amounts
reported by the Fund to shareholders as capital gain dividends (a) that are attributable to certain capital
gain dividends received from a qualified investment entity (QIE) (generally defined as either (i) a U.S. REIT or (ii) a RIC classified
as a “U.S. real property holding corporation” or which would be if the exceptions for holding 5% or less of a class of publicly
traded shares or an interest in a domestically controlled QIE did not apply), or (b) that are realized by the Fund on the sale of a “U.S.
real property interest” (including gain realized on the sale of shares in a QIE other than one that is domestically controlled),
will not be exempt from U.S. federal income tax and may be subject to U.S. withholding tax at the rate of 30% (or lower treaty rate) if
the Fund by reason of having a REIT strategy is classified as a QIE. If the Fund is so classified, foreign shareholders owning more than
5% of the Fund’s shares may be treated as realizing gain from the disposition of a U.S. real property interest, causing Fund distributions
to be subject to U.S. withholding tax at the corporate income tax rate, and requiring the filing of a nonresident U.S. income tax return.
In addition, if the Fund is classified as a QIE, anti-avoidance rules apply to certain wash sale transactions. Namely, if the Fund is
a domestically controlled QIE and a foreign shareholder disposes of the Fund’s shares prior to the Fund paying a distribution attributable
to the disposition of a U.S. real property interest and the foreign shareholder later acquires an identical stock interest in a wash sale
transaction, the foreign shareholder may still be required to pay U.S. tax on the Fund’s distribution. Also, the sale of shares
of the Fund, if classified as a “U.S. real property holding corporation,” could also be considered a sale of a U.S. real
property interest with any resulting gain from such sale being subject to U.S. tax as income “effectively connected with a U.S.
trade or business.”
126
Income
effectively connected with a U.S. trade or business. If the income
from the Fund is effectively connected with a U.S. trade or business carried on by a foreign shareholder, then ordinary income dividends,
capital gain dividends and any gains realized upon the sale or redemption of shares of the Fund will be subject to U.S. federal income
tax at the rates applicable to U.S. citizens or domestic corporations and require the filing of a nonresident U.S. income tax return.
Tax
certification and backup withholding. Foreign shareholders may
have special U.S. tax certification requirements to avoid backup withholding (at a rate of 24%) and, if applicable, to obtain the benefit
of any income tax treaty between the foreign shareholder’s country of residence and the United States. To claim these tax benefits,
the foreign shareholder must provide a properly completed Form W-8BEN (or other Form W-8, where applicable, or their substitute forms)
to establish his or her status as a non-U.S. investor, to claim beneficial ownership over the assets in the account, and to claim, if
applicable, a reduced rate of or exemption from withholding tax under the applicable treaty. A Form W-8BEN provided without a U.S. taxpayer
identification number remains in effect for a period of three years beginning on the date that it is signed and ending on the last day
of the third succeeding calendar year. However, non-U.S. investors must advise the Fund of any changes of circumstances that would render
the information given on the form incorrect, and must then provide a new W-8BEN to avoid the prospective application of backup withholding.
Forms W-8BEN with U.S. taxpayer identification numbers remain valid indefinitely, or until the investor has a change of circumstances
that renders the form incorrect and necessitates a new form and tax certification. Certain payees and payments are exempt from backup
withholding.
Foreign
Account Tax Compliance Act (FATCA). Under FATCA, the Fund will
be required to withhold a 30% tax on income dividends made by the Fund to certain foreign entities, referred to as foreign financial institutions
(FFI) or non-financial foreign entities (NFFE). After December 31, 2018, FATCA withholding also would have applied to certain capital
gain distributions, return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed
regulations issued by the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide
otherwise (which is not expected). The FATCA withholding tax generally can be avoided: (a) by an FFI, if it reports certain direct and
indirect ownership of foreign financial accounts held by U.S. persons with the FFI and (b) by an NFFE, if it: (i) certifies that it has
no substantial U.S. persons as owners or (ii) if it does have such owners, reporting information relating to them. The U.S. Treasury has
negotiated intergovernmental agreements (IGA) with certain countries and is in various stages of negotiations with a number of other foreign
countries with respect to one or more alternative approaches to implement FATCA.
An
FFI can avoid FATCA withholding if it is deemed compliant or by becoming a “participating FFI,” which requires
the FFI to enter into a U.S. tax compliance agreement with the IRS under section 1471(b) of the Code (FFI agreement) under which it agrees
to verify, report and disclose certain of its U.S. accountholders and meet certain other specified requirements. The FFI will either report
the specified information about the U.S. accounts to the IRS, or, to the government of the FFI’s country of residence (pursuant
to the terms and conditions of applicable law and an applicable IGA entered into between the U.S. and the FFI’s country of residence),
which will, in turn, report the specified information to the IRS. An FFI that is resident in a country that has entered into an IGA with
the U.S. to implement FATCA will be exempt from FATCA withholding provided that the FFI shareholder and the applicable foreign government
comply with the terms of such agreement.
An
NFFE that is the beneficial owner of a payment from the Fund can avoid the FATCA withholding tax generally
by certifying that it does not have any substantial U.S. owners or by providing the name, address and taxpayer identification number of
each substantial U.S. owner. The NFFE will report the information to the Fund or other applicable withholding agent, which will, in turn,
report the information to the IRS.
Such
foreign shareholders also may fall into certain exempt, excepted or deemed compliant categories as established
by U.S. Treasury regulations, IGAs, and other guidance regarding FATCA. An FFI or NFFE that invests in the Fund will need to provide the
Fund with documentation properly certifying the entity’s status under FATCA in order to avoid FATCA withholding. Non-U.S. investors
should consult their own tax advisors regarding the impact of these requirements on their investment in the Fund. The requirements imposed
by
127
FATCA
are different from, and in addition to, the U.S. tax certification rules to avoid backup withholding described
above. Shareholders are urged to consult their tax advisors regarding the application of these requirements to their own situation.
U.S.
estate tax. Transfers by gift of shares of the Fund by a foreign
shareholder who is a nonresident alien individual will not be subject to U.S. federal gift tax. An individual who, at the time of death,
is a foreign shareholder will nevertheless be subject to U.S. federal estate tax with respect to shares at the graduated rates applicable
to U.S. citizens and residents, unless a treaty exemption applies. If a treaty exemption is available, a decedent’s estate may
nonetheless need to file a U.S. estate tax return to claim the exemption in order to obtain a U.S. federal transfer certificate. The transfer
certificate will identify the property (i.e., Fund shares) as to which the U.S. federal estate tax lien has been released. In the absence
of a treaty, there is a $13,000 statutory estate tax credit (equivalent to an estate with assets of $60,000).
Local
Tax Considerations. Rules of state and local taxation of ordinary
income, qualified dividend income and capital gain dividends may differ from the rules for U.S. federal income taxation described above.
Distributions may also be subject to additional state, local and foreign taxes depending on each shareholder’s particular situation.
DISTRIBUTION
OF SECURITIES
Distributor
The
Trust has entered into a master distribution agreement, as amended, relating to the Funds (the Distribution
Agreement) with Invesco Distributors, Inc. (Invesco Distributors), a registered broker-dealer and a wholly-owned subsidiary of Invesco
Ltd., pursuant to which Invesco Distributors acts as the distributor of shares of the Funds. The address of Invesco Distributors is 11
Greenway Plaza, Suite 1000, Houston, TX 77046-1173. Certain trustees and officers of the Trust are affiliated with Invesco Distributors.
See “Management of the Trust.” In addition to the Funds, Invesco Distributors serves as distributor to many other mutual
funds that are offered to retail investors. The following Distribution of Securities information is about all of the Invesco Funds that
offer retail and/or Class R5 or Class R6 shares. Not all Invesco Funds offer all share classes.
The
Distribution Agreement provides Invesco Distributors with the exclusive right to distribute shares of the
Funds on a continuous basis directly and through other broker-dealers and other financial intermediaries with whom Invesco Distributors
has entered into selected dealer and/or similar agreements. Invesco Distributors has not undertaken to sell any specified number of shares
of any classes of the Funds.
Invesco
Distributors expects to pay sales commissions from its own resources to dealers and institutions who
sell Class C and Class R shares of the Funds at the time of such sales.
Invesco
Distributors may pay sales commissions to dealers and institutions who sell Class C shares of the
Invesco Funds at the time of such sales. Payments for Class C shares generally equal 1.00% of the purchase price of the Class C shares
sold by the dealer or institution, consisting of a sales commission of 0.75% of the purchase price of the Class C shares sold plus an
advance of the first year service fee of up to 0.25% for such shares. Invesco Distributors will retain all payments received by it relating
to Class C shares for the first year after they are purchased. The portion of the payments to Invesco Distributors under the Class C Plan
that constitutes an asset-based sales charge (0.75%) is intended in part to permit Invesco Distributors to recoup a portion of the sales
commissions to dealers plus financing costs, if any. After the first full year, Invesco Distributors will make payments to dealers and
institutions based on the average net asset value of Class C shares that are attributable to shareholders for whom the dealers and institutions
are designated as dealers of record. These payments will consist of an asset-based sales charge of 0.75% and a service fee of up to 0.25%.
Invesco
Distributors may pay dealers and institutions who sell Class R shares an annual fee of 0.50% of average
daily net assets. These payments will consist of an asset-based fee of 0.25% and a service fee of 0.25%. Invesco Distributors will make
payments to dealers and institutions based on the average net asset
128
value
of Class R shares that are attributable to shareholders for whom the dealers and institutions are designated
as dealers of record.
The
Trust (on behalf of any class of any Invesco Fund) or Invesco Distributors may terminate the Distribution
Agreements on 60 days’ written notice without penalty. The Distribution Agreements will terminate automatically in the event of
its assignment.
Total
sales charges (front end and CDSCs) paid in connection with the sale of shares of each class of each
Fund, if applicable, for the last three fiscal years are found in Appendix M.
Distribution
Plans
The
Trust has adopted three different forms of distribution plans pursuant to Rule 12b-1 under the 1940 Act
for the Funds’ Class A shares, Class C shares, Class R shares, Class S shares and Investor Class shares, as applicable (each, a
Plan and, collectively, the Plans).
The
following Funds, pursuant to their Compensation Plan, pay Invesco Distributors compensation at the annual
rate, shown immediately below, of the Fund's average daily net assets of the applicable class.
The
following Funds, pursuant to their Reimbursement Plan (Distribution and Service), reimburses Invesco
Distributors in an amount up to the annual rate, shown immediately below, of the Fund’s average daily net assets of the applicable
class.
|
Fund
|
Class
A |
Class
C |
Investor
Class |
|
Invesco
Convertible Securities Fund |
0.25%
|
1.00%
|
N/A
|
|
Invesco
Quality Income Fund |
0.25%
|
1.00%
|
N/A
|
|
Invesco
Small Cap Growth Fund |
0.25%
|
1.00%
|
0.25%
|
The
following Funds, pursuant to their Reimbursement Plan (Service Only), reimburses Invesco Distributors
in an amount up to the annual rate, shown immediately below, of the Fund’s average daily net assets of Class A shares.
|
Fund
|
Class
A |
|
Invesco
Active Allocation Fund |
0.25%
|
|
Invesco
International Diversified Fund |
0.25%
|
|
Invesco
Main Street Mid Cap Fund®
|
0.25%
|
|
Invesco
Main Street Small Cap Fund®
|
0.25%
|
|
Invesco
Select Risk: Conservative Investor Fund |
0.25%
|
|
Invesco
Select Risk: High Growth Investor Fund |
0.25%
|
|
Invesco
Select Risk: Moderate Investor Fund |
0.25%
|
The
Compensation Plan compensates and the Reimbursement Plan (Distribution and Service) reimburses
Invesco Distributors for expenses incurred for the purpose of financing any activity that is primarily intended to result in the sale
of shares of the Funds. Such activities include, but are not limited to, the following: printing and distributing prospectuses and reports
used for sales purposes, preparing and
129
distributing
sales literature (and any related services), advertisements, payment of dealer commissions and wholesaler
compensation in connection with sales of certain Fund's Class A shares exceeding a certain amount set forth in the prospectus for such
Fund (for which the Fund imposes no sales charge) and other distribution-related services permitted by Rule 12b-1. The Reimbursement Plan
(Service Only) reimburses Invesco Distributors for expenses incurred for shareholder services provided for existing shareholders of a
Fund.
Payments
pursuant to the Plans are subject to any applicable limitations imposed by FINRA rules.
See
Appendix N for a list of the amounts paid by each class of shares of each Fund to Invesco Distributors
pursuant to the Plans for the fiscal year ended December 31, 2022, and Appendix O for an estimate by category of the allocation of actual
fees paid by each class of shares of each Fund pursuant to its respective distribution plan for the fiscal year ended December 31, 2022.
As
required by Rule 12b-1, the Plans were approved by a majority of the Board, including a majority of the trustees
who are not “interested persons” (as defined in the 1940 Act) of the Trust and who have no direct or indirect financial
interest in the operation of the Plans or in any agreements related to the Plans (the Rule 12b-1 Trustees). In approving the Plans in
accordance with the requirements of Rule 12b-1, the trustees considered various factors and determined that there is a reasonable likelihood
that the Plans would benefit each class of the Funds and its respective shareholders.
The
anticipated benefits that may result from the Plans with respect to each Fund and/or the classes of each
Fund and its shareholders include but are not limited to the following: (i) an increase in assets which may result in a diversified shareholder
base, thereby reducing the outflow risk to other shareholders in the Funds; (ii) an increase in assets which may reduce expenses as fixed
dollar costs are allocated across a larger asset base and/or allow a Fund to reach advisory fee breakpoints; and (iii) increased scale
could increase the likelihood of name recognition and the profile of a Fund in its asset space, thereby improving the momentum for asset
generation.
Unless
terminated earlier in accordance with their terms, the Plans continue from year to year as long as such
continuance is specifically approved at least annually by the Board, including a majority of the Rule 12b-1 Trustees. A Plan may be terminated
at any time in whole or with respect to a Fund or class by the vote of a majority of the Rule 12b-1 Trustees or by the vote of a majority
of the outstanding voting securities of that class.
Any
amendment to the Plans that would increase materially the distribution expenses paid by the applicable
class requires shareholder approval; otherwise, the Plans may be amended by the trustees, including a majority of the Rule 12b-1 Trustees,
by votes cast at a meeting called for the purpose of voting upon such amendment. As long as the Plans are in effect, the Board shall satisfy
the fund governance standards as defined in Rule 0-1(a)(7) under the 1940 Act.
The
Compensation Plans obligate the Funds to pay Invesco Distributors the full amount of the distribution and
service fees reflected on the schedules to those plans. Thus, even if Invesco Distributors’ actual allocated share of expenses
exceeds the fee payable to Invesco Distributors at any given time, under the Compensation Plan, the Funds will not be obligated to pay
more than that fee. If Invesco Distributors’ actual allocated share of expenses is less than the fee it receives, under the Compensation
Plan, Invesco Distributors will retain the full amount of the fee.
The
Reimbursement Plans obligate the Funds to pay Invesco Distributors up to the lesser of (i) the amount
of the distribution and/or service fees reflected on the schedules to those plans and (ii) the actual costs of the distribution and/or
shareholder servicing services provided by or through Invesco Distributors. Reimbursement will be made through payments made periodically
on such basis as reflected in the Reimbursement Plans by the Funds to Invesco Distributors. If Invesco Distributors’ actual allocated
share of expenses incurred pursuant to the Reimbursement Plans for the period exceeds the annual cap reflected on the schedule to the
Plan, a Fund will not be obligated to pay more than the annual cap. If Invesco Distributors’
130
actual
allocated share of expenses incurred pursuant to the Reimbursement Plans for the period is less than the
annual cap, Invesco Distributors is entitled to be reimbursed only for its actual allocated share of expenses.
Invesco
Distributors may from time to time waive or reduce any portion of its 12b-1 fee. Voluntary fee waivers
or reductions may be rescinded at any time without further notice to investors. During periods of voluntary fee waivers or reductions,
Invesco Distributors will retain its ability to be reimbursed for such fee prior to the end of the respective fiscal year in which the
voluntary fee waiver or reduction was made.
Payments
made pursuant to the Rule 12b-1 Plans discussed above may continue for Funds or share classes
that are in limited offering or closed to new investors.
The
Funds may pay a service fee of up to the cap disclosed in each Fund’s Plan and in any case no greater
than 0.25% of the average daily net assets of the Class A, Class C, Class R and Investor Class shares, 0.15% of the average daily net
assets of Class S shares, and 0.10% of the average daily net assets of Class P shares, attributable to the customers’ selected
dealers and financial institutions to such dealers and financial institutions, including Invesco Distributors, acting as principal, who
furnish continuing personal shareholder services and/or maintenance of accounts to their customers who purchase and own the applicable
class of shares of the Fund. Under the terms of a shareholder service agreement, such personal shareholder services and/or maintenance
of accounts may include, but are not limited to, assisting in establishing and maintaining customer accounts and records, assisting with
purchase and redemption requests, arranging for bank wires, monitoring dividend payments from a Fund on behalf of customers, forwarding
certain shareholder communications from a Fund to customers, receiving and answering correspondence, aiding in maintaining the investment
of their respective customers in a Fund and providing such other information and services as reasonably requested. Any amounts not paid
as a service fee under each Plan would constitute an asset-based sales charge.
The
Funds may agree to pay fees to selected dealers and other institutions who render the foregoing services
to their customers subject to an agreement. Fees shall be paid only to those selected dealers or other institutions who are dealers or
institutions of record at the close of business on the last business day of the applicable payment period for the account in which such
Fund’s shares are held.
Selected
dealers and other institutions entitled to receive compensation for selling Fund shares may receive
different compensation for selling shares of one particular class over another. Under the Plans, certain financial institutions which
have entered into service agreements and which sell shares of the Funds, may receive payments from the Funds pursuant to the Plans in
an amount not to exceed the maximum annual rate to be paid to Invesco Distributors under the Plans. These payments are an obligation of
the Funds and not of Invesco Distributors.
Because
of fluctuations in net asset value, the Plans’ fees with respect to a particular Class C share may be
greater or less than the amount of the initial commission (including carrying cost) paid by Invesco Distributors with respect to such
share. In such circumstances, a shareholder of a share may be deemed to incur expenses attributable to other shareholders of such class.
FINANCIAL
STATEMENTS
The
audited financial statements for the Funds’ fiscal year ended December
31, 2022, including the notes thereto, and the reports of PricewaterhouseCoopers
LLP thereon, are incorporated by reference to the annual report to shareholders contained in the Funds’ Form N-CSR filed on March
1,
2023.
The
portions of such annual reports that are not specifically listed above are not incorporated by reference
into this SAI and are not a part of this Registration Statement.
131
APPENDIX
A - RATINGS OF DEBT SECURITIES
The
following is a description of the factors underlying the debt ratings of Moody's, S&P, and Fitch.
Moody's
Long-Term Debt Ratings
Aaa:
Obligations rated 'Aaa' are judged to be of the highest quality, subject to the lowest level of credit risk.
Aa:
Obligations rated 'Aa' are judged to be of high quality and are subject to very low credit risk.
A:
Obligations rated 'A' are judged to be upper-medium grade and are subject to low credit risk.
Baa:
Obligations rated 'Baa' are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative
characteristics.
Ba:
Obligations rated 'Ba' are judged to be speculative and are subject to substantial credit risk.
B:
Obligations rated 'B' are considered speculative and are subject to high credit risk.
Caa:
Obligations rated 'Caa' are judged to be speculative of poor standing and are subject to very high credit risk.
Ca:
Obligations rated 'Ca' are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and
interest.
C:
Obligations rated 'C' are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.
Note:
Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that
the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier
3 indicates a ranking in the lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to
all ratings of hybrid securities issued by banks, insurers, finance companies, and securities firms*.
*
By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments, which can potentially
result in impairment if such an omission occurs. Hybrid securities may also be subject to contractually allowable write-downs of principal
that could result in impairment. Together with the hybrid indicator, the long-term obligation rating assigned to a hybrid security is
an expression of the relative credit risk associated with that security.
Moody's
Short-Term Prime Rating System
P-1:
Ratings of Prime-1 reflect a superior ability to repay short-term obligations.
P-2:
Ratings of Prime-2 reflect a strong ability to repay short-term obligations.
P-3:
Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.
NP
(Not Prime): Issuers (or supporting institutions) rated Not Prime
do not fall within any of the Prime rating categories.
Moody's
MIG/VMIG US Short-Term Ratings
Short-Term
Obligation Ratings
We
use the global short-term Prime rating scale for commercial paper issued by US municipalities and nonprofits.
These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by an issuer’s self-liquidity.
For
other short-term municipal obligations, we use one of two other short-term rating scales, the Municipal Investment
Grade (MIG) and Variable Municipal Investment Grade (VMIG) scales discussed below.
A-1
We
use the MIG scale for US municipal cash flow notes, bond anticipation notes and certain other short-term
obligations, which typically mature in three years or less. Under certain circumstances, we use the MIG scale for bond anticipation notes
with maturities of up to five years.
MIG
1: This designation denotes superior credit quality. Excellent
protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market
for refinancing.
MIG
2: This designation denotes strong credit quality. Margins of protection
are ample, although not as large as in the preceding group.
MIG
3: This designation denotes acceptable credit quality. Liquidity
and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established.
SG:
This designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection.
VMIG
Ratings
For
variable rate demand obligations (VRDOs), Moody’s assigns both a long-term rating and a short-term payment obligation rating. The
long-term rating addresses the issuer’s ability to meet scheduled principal and interest payments. The short-term payment obligation
rating addresses the ability of the issuer or the liquidity provider to meet any purchase price payment obligation resulting from optional
tenders (“on demand”) and/or mandatory tenders of the VRDO. The short-term payment obligation rating uses the VMIG scale.
Transitions of VMIG ratings with conditional liquidity support differ from transitions of Prime ratings reflecting the risk that external
liquidity support will terminate if the issuer’s long-term rating drops below investment grade. Please see our methodology that
discusses obligations with conditional liquidity support.
For
VRDOs, we typically assign a VMIG rating if the frequency of the payment obligation is less than every three years. If the frequency of
the payment obligation is less than three years, but the obligation is payable only with remarketing proceeds, the VMIG short-term rating
is not assigned and it is denoted as “NR”.
Industrial
development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects
Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the liquidity of
the corporate obligor.
VMIG
Scale
VMIG
1: This designation denotes superior credit quality. Excellent
protection is afforded by the superior short-term credit strength of the liquidity provider and structural and legal protections.
VMIG
2: This designation denotes strong credit quality. Good protection
is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections.
VMIG
3: This designation denotes acceptable credit quality. Adequate
protection is afforded by the satisfactory short-term credit strength of the liquidity provider and structural and legal protections.
SG:
This designation denotes speculative-grade credit quality. Demand features rated in this category may be supported by a liquidity provider
that does not have a sufficiently strong short-term rating or may lack the structural or legal protections.
Standard
& Poor's Long-Term Issue Credit Ratings
Issue
credit ratings are based, in varying degrees, on S&P Global Ratings’ analysis of the following considerations:
•
The
likelihood of payment--the capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with
the terms of the obligation;
•
The
nature and provisions of the financial obligation, and the promise we impute; and
A-2
•
The
protection afforded by, and relative position of, the financial obligation in the event of bankruptcy, reorganization, or other arrangement
under the laws of bankruptcy and other laws affecting creditors' rights.
An
issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or ultimate recovery in the event
of default. Junior obligations are typically rated lower than senior obligations, to reflect the lower priority in bankruptcy, as noted
above. (Such differentiation may apply when an entity has both senior and subordinated obligations, secured and unsecured obligations,
or operating company and holding company obligations.)
AAA:
An obligation rated 'AAA' has the highest rating assigned by S&P Global Ratings. The obligor's capacity to meet its financial commitments
on the obligation is extremely strong.
AA:
An obligation rated 'AA' differs from the highest-rated obligations only to a small degree. The obligor's capacity to meet its financial
commitments on the obligation is very strong.
A:
An obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations
in higher-rated categories. However, the obligor's capacity to meet its financial commitments on the obligation is still strong.
BBB:
An obligation rated 'BBB' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are
more likely to weaken the obligor’s capacity to meet its financial commitments on the obligation.
BB,
B, CCC, CC and C: Obligations rated 'BB', 'B', 'CCC' 'CC', and
'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the highest.
While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or
major exposure to adverse conditions.
BB:
An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties
or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial
commitments on the obligation.
B:
An obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet
its financial commitments on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity
or willingness to meet its financial commitments on the obligation.
CCC:
An obligation rated 'CCC' is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions
for the obligor to meet its financial commitments on the obligation. In the event of adverse business, financial, or economic conditions,
the obligor is not likely to have the capacity to meet its financial commitments on the obligation.
CC:
An obligation rated 'CC' is currently highly vulnerable to nonpayment. The 'CC' rating is used when a default has not yet occurred but
S&P Global Ratings expects default to be a virtual certainty, regardless of the anticipated time to default.
C:
An obligation rated 'C' is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority
or lower ultimate recovery compared with obligations that are rated higher.
D:
An obligation rated 'D' is in default or in breach of an imputed promise. For non-hybrid capital instruments, the 'D' rating category
is used when payments on an obligation are not made on the date due, unless S&P Global Ratings believes that such payments will be
made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or 30 calendar
days. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of similar action and where default on an
obligation is a virtual certainty, for example due to automatic stay provisions. An obligation's rating is lowered to 'D' if it is subject
to a distressed exchange offer.
A-3
Plus
(+) or minus (-): The ratings from 'AA' to 'CCC' may be modified
by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
NR:
This indicates that no rating has been requested, or that there is insufficient information on which to base a rating, or that S&P
Global Ratings does not rate a particular obligation as a matter of policy.
Standard
& Poor's Short-Term Issue Credit Ratings
A-1:
A short-term obligation rated 'A-1' is rated in the highest category by S&P Global Ratings. The obligor's capacity to meet its financial
commitments on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates
that the obligor's capacity to meet its financial commitments on these obligations is extremely strong.
A-2:
A short-term obligation rated 'A-2' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions
than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitments on the obligation is satisfactory.
A-3:
A short-term obligation rated 'A-3' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances
are more likely to weaken an obligor's capacity to meet its financial commitments on the obligation.
B:
A short-term obligation rated 'B' is regarded as vulnerable and has significant speculative characteristics. The obligor currently has
the capacity to meet its financial commitments; however, it faces major ongoing uncertainties that could lead to the obligor's inadequate
capacity to meet its financial commitments.
C:
A short-term obligation rated 'C' is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic
conditions for the obligor to meet its financial commitments on the obligation.
D:
A short-term obligation rated 'D' is in default or in breach of an imputed promise. For non-hybrid capital instruments, the 'D' rating
category is used when payments on an obligation are not made on the date due, unless S&P Global Ratings believes that such payments
will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business
days. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action and where default on
an obligation is a virtual certainty, for example due to automatic stay provisions. A rating on an obligation is lowered to 'D' if it
is subject to a distressed debt restructuring.
Standard
& Poor's Municipal Short-Term Note Ratings Definitions
An
S&P Global Ratings U.S. municipal note rating reflects S&P Global Ratings’ opinion about the liquidity factors
and market access risks unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original
maturity of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to assign,
S&P Global Ratings’ analysis will review the following considerations:
•
Amortization
schedule -- the larger final maturity relative to other maturities, the more likely it will be treated as a note; and
•
Source
of payment -- the more dependent the issue is on the market for its refinancing, the more likely it will be treated as a note.
Note
rating symbols are as follows:
SP-1:
Strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to pay debt service is given a plus
(+) designation.
SP-2:
Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the term of
the notes.
A-4
SP-3:
Speculative capacity to pay principal and interest.
D:
‘D’ is assigned upon failure to pay the note when due, completion of a distressed exchange offer, or the filing of a bankruptcy
petition or the taking of similar action and where default on an obligation is a virtual certainty, for example due to automatic stay
provisions.
Standard
& Poor's Dual Ratings
Dual
ratings may be assigned to debt issues that have a put option or demand feature. The first component
of the rating addresses the likelihood of repayment of principal and interest as due, and the second component of the rating addresses
only the demand feature. The first component of the rating can relate to either a short-term or long-term transaction and accordingly
use either short-term or long-term rating symbols. The second component of the rating relates to the put option and is assigned a short-term
rating symbol (for example, 'AAA/A-1+' or 'A-1+/A-1'). With U.S. municipal short-term demand debt, the U.S. municipal short-term note
rating symbols are used for the first component of the rating (for example, 'SP-1+/A-1+').
Fitch
Credit Rating Scales
Fitch
Ratings publishes credit ratings that are forward-looking opinions on the relative ability of an entity or
obligation to meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial institutions
such as banks, leasing companies and insurers, and public finance entities (local and regional governments). Issue level ratings are also
assigned, often include an expectation of recovery and may be notched above or below the issuer level rating. Issue ratings are assigned
to secured and unsecured debt securities, loans, preferred stock and other instruments, Structured finance ratings are issue ratings to
securities backed by receivables or other financial assets that consider the obligations’ relative vulnerability to default. Credit
ratings are indications of the likelihood of repayment in accordance with the terms of the issuance. In limited cases, Fitch may include
additional considerations (i.e., rate to a higher or lower standard than that implied in the obligation’s documentation). Please
see the section Specific Limitations Relating to Credit Rating Scales for details. Fitch Ratings also publishes other ratings, scores
and opinions. For example, Fitch provides specialized ratings of servicers of residential and commercial mortgages, asset managers and
funds. In each case, users should refer to the definitions of each individual scale for guidance on the dimensions of risk covered in
each assessment.
Fitch’s
credit rating scale for issuers and issues is expressed using the categories ‘AAA’ to ‘BBB’ (investment
grade) and ‘BB’ to ‘D’ (speculative grade) with an additional +/-for AA through CCC levels indicating relative
differences of probability of default or recovery for issues.
The
terms “investment grade” and “speculative grade” are market conventions and do not imply any recommendation
or endorsement of a specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit
risk, while ratings in the speculative categories signal either a higher level of credit risk or that a default has already occurred.
Fitch
may also disclose issues relating to a rated issuer that are not and have not been rated. Such issues
are also denoted as ‘NR’ on its web page.
Credit
ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and
are not predictive of a specific frequency of default or loss. For information about the historical performance of ratings, please refer
to Fitch’s Ratings Transition and Default studies, which detail the historical default rates. The European Securities and Markets
Authority also maintains a central repository of historical default rates.
Fitch’s
credit ratings do not directly address any risk other than credit risk. Credit ratings do not deal with the risk of market value loss
due to changes in interest rates, liquidity and/or other market considerations. However, market risk may be considered to the extent that
it influences the ability of an issuer to pay or refinance a financial commitment. Ratings nonetheless do not reflect market risk to the
extent that they
A-5
influence
the size or other conditionality of the obligation to pay upon a commitment (for example, in the case of
payments linked to performance of an equity index).
Fitch
will use credit rating scales to provide ratings to privately issued obligations or certain note issuance programs,
or for private ratings using the same public scale and criteria. Private ratings are not published, and are only provided to the issuer
or its agents in the form of a rating letter. The primary credit rating scales may also be used to provide ratings for a narrower scope,
including interest strips and return of principal or in other forms of opinions such as Credit Opinions or Rating Assessment Services.
Credit
Opinions are either a notch- or category-specific view using the primary rating scale and omit one or
more characteristics of a full rating or meet them to a different standard. Credit Opinions will be indicated using a lower-case letter
symbol combined with either an ‘*’ (e.g. ‘bbb+*’) or (cat) suffix to denote the opinion status. Credit Opinions
will be typically point-in-time but may be monitored if the analytical group believes information will be sufficiently available.
Rating
Assessment Services are a notch-specific view using the primary rating scale of how an existing or potential
rating may be changed by a given set of hypothetical circumstances. While Credit Opinions and Rating Assessment Services are point-in-time
and are not monitored, they may have a directional Watch or Outlook assigned, which can signify the trajectory of the credit profile.
Ratings
assigned by Fitch are opinions based on established, approved and published criteria. A variation to
criteria may be applied but will be explicitly cited in our rating action commentaries (RACs), which are used to publish credit ratings
when established and upon annual or periodic reviews.
Ratings
are the collective work product of Fitch, and no individual, or group of individuals, is solely responsible
for a rating. Ratings are not facts and, therefore, cannot be described as being "accurate" or "inaccurate." Users should refer to the
definition of each individual rating for guidance on the dimensions of risk covered by the rating.
Fitch
Long-Term Rating Scales
Issuer
Default Ratings
Rated
entities in a number of sectors, including financial and non-financial corporations, sovereigns, insurance
companies and certain sectors within public finance, are generally assigned Issuer Default Ratings (IDRs). IDRs are also assigned to certain
entities in global infrastructure and project finance. IDRs opine on an entity's relative vulnerability to default on financial obligations.
The threshold default risk addressed by the IDR is generally that of the financial obligations whose non-payment would best reflect the
uncured failure of that entity. As such, IDRs also address relative vulnerability to bankruptcy, administrative receivership or similar
concepts.
In
aggregate, IDRs provide an ordinal ranking of issuers based on the agency's view of their relative vulnerability
to default, rather than a prediction of a specific percentage likelihood of default.
AAA:
Highest credit quality.
'AAA'
ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally
strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.
AA:
Very high credit quality.
'AA'
ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial
commitments. This capacity is not significantly vulnerable to foreseeable events.
A-6
A:
High credit quality.
'A'
ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered
strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.
BBB:
Good credit quality.
'BBB'
ratings indicate that expectations of default risk are currently low. The capacity for payment of financial
commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.
BB:
Speculative.
'BB'
ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in
business or economic conditions over time; however, business or financial flexibility exists that supports the servicing of financial
commitments.
B:
Highly speculative.
'B'
ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments
are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.
CCC:
Substantial credit risk.
Very
low margin of safety. Default is a real possibility.
CC:
Very high levels of credit risk.
Default
of some kind appears probable.
C:
Near default
A
default or default-like process has begun, or the issuer is in standstill, or for a closed funding vehicle, payment
capacity is irrevocably impaired. Conditions that are indicative of a 'C' category rating for an issuer include:
a.
the issuer has entered into a grace or cure period following non-payment of a material financial obligation;
b.
the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a material financial
obligation; or
c.
the formal announcement by the issuer or their agent of a distressed debt exchange;
d.
a closed financing vehicle where payment capacity is irrevocably impaired such that it is not expected to pay interest and/or principal
in full during the life of the transaction, but where no payment default is imminent
RD:
Restricted default.
‘RD’
ratings indicate an issuer that in Fitch’s opinion has experienced:
a.
an uncured payment default or distressed debt exchange on a bond, loan or other material financial obligation, but
b.
has not entered into bankruptcy filings, administration, receivership, liquidation, or other formal winding-up procedure, and
c.
has not otherwise ceased operating.
This
would include:
A-7
i.
the selective payment default on a specific class or currency of debt;
ii.
the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan,
capital markets security or other material financial obligation;
iii.
the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either
in series or in parallel; ordinary execution of a distressed debt exchange on one or more material financial obligations.
D:
Default.
'D'
ratings indicate an issuer that in Fitch Ratings' opinion has entered into bankruptcy filings, administration,
receivership, liquidation or other formal winding-up procedure or which has otherwise ceased business.
Default
ratings are not assigned prospectively to entities or their obligations; within this context, non-payment
on an instrument that contains a deferral feature or grace period will generally not be considered a default until after the expiration
of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed
debt exchange.
In
all cases, the assignment of a default rating reflects the agency's opinion as to the most appropriate rating
category consistent with the rest of its universe of ratings and may differ from the definition of default under the terms of an issuer's
financial obligations or local commercial practice.
Notes
The
modifiers + or - may be appended to a rating to denote relative status within major rating categories. Such
suffixes are not added to the 'AAA' Long-Term IDR category, or to Long-Term IDR categories below 'B'.
Fitch
Short-Term Ratings Assigned to Issuers and Obligations
A
short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated
entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the relevant obligation.
Short-term deposit ratings may be adjusted for loss severity. Short-Term Ratings are assigned to obligations whose initial maturity is
viewed as "short term" based on market convention. Typically, this means up to 13 months for corporate, sovereign, and structured obligations
and up to 36 months for obligations in U.S. public finance markets.
F1:
Highest Short-Term Credit Quality. Indicates the strongest capacity
for timely payment of financial commitments
relative to other issuers or obligations in the same country. Under
the agency’s National Rating scale, this rating is assigned to the lowest default risk relative to other in the same country or
monetary union. Where the liquidity profile is particularly strong, a “+” is added to the assigned rating.
F2:
Good Short-Term Credit Quality. Indicates
a good capacity for timely payment of financial commitments relative to other issuers or obligations in the same country or monetary union.
However, the margin of safety is not as great as in the case of the higher ratings.
F3:
Fair Short-Term Credit Quality. Indicates
an uncertain capacity for timely payment of financial commitments relative to other issuers or obligations in the same country or monetary
union.
B:
Speculative Short-Term Credit Quality. Indicates
an uncertain capacity for timely payment of financial commitments
relative to other issuers or obligations in the same country or
monetary union.
C:
High Short-Term Default Risk. Indicates
a highly uncertain capacity for timely payment of financial commitments relative to other issuers or obligations in the same country or
monetary union.
RD:
Restricted Default. Indicates an entity that has defaulted on one
or more of its financial commitments, although it continues to meet other financial obligations. Applicable to entity ratings only.
D:
Default. Indicates a broad-based default event for an entity, or
the default of a short-term obligation.
A-8
APPENDIX
B - PERSONS TO WHOM INVESCO PROVIDES NON-PUBLIC PORTFOLIO HOLDINGS ON AN
ONGOING BASIS
(as
of March 31, 2023)
|
Service
Provider |
Disclosure
Category |
|
ABN
AMRO Financial Services, Inc. |
Broker
(for certain Invesco Funds) |
|
Absolute
Color |
Financial
Printer |
|
Anglemyer
& Co. |
Analyst
(for certain Invesco Funds) |
|
AXA
|
Other
|
|
Ballard
Spahr Andrews & Ingersoll,
LLP
|
Special
Insurance Counsel |
|
Barclays
Capital, Inc. |
Broker
(for certain Invesco Funds) |
|
Blaylock
Robert Van LLC |
Broker
(for certain Invesco Funds) |
|
BB&T
Capital Markets |
Broker
(for certain Invesco Funds) |
|
Bear
Stearns Pricing Direct, Inc. |
Pricing
Vendor (for certain Invesco Funds) |
|
BLNS
Securities Ltd. |
Broker
(for certain Invesco Funds) |
|
BOSC,
Inc. |
Broker
(for certain Invesco Funds) |
|
Brown
Brothers Harriman & Co. |
Custodian
and Securities Lender (each, respectively, for certain Invesco Funds) |
|
Cabrera
Capital Markets |
Broker
(for certain Invesco Funds) |
|
Charles
River Systems, Inc. |
System
Provider |
|
Chas.
P. Young Co. |
Financial
Printer |
|
Cirrus
Research, LLC |
Trading
System |
|
Citibank,
N.A. |
Custodian
and Securities Lender (each, respectively, for certain Invesco Funds) |
|
Citigroup
Global Markets, Inc. |
Broker
(for certain Invesco Funds) |
|
Commerce
Capital Markets |
Broker
(for certain Invesco Funds) |
|
Crane
Data, LLC |
Analyst
(for certain Invesco Funds) |
|
Credit
Suisse International / Credit
Suisse
Securities (Europe) Ltd. |
Service
Provider |
|
Crews
& Associates |
Broker
(for certain Invesco Funds) |
|
D.A.
Davidson & Co. |
Broker
(for certain Invesco Funds) |
|
Dechert
LLP |
Legal
Counsel |
|
DEPFA
First Albany |
Broker
(for certain Invesco Funds) |
|
Deutsche
Bank Trust Company
Americas
|
Custodian
and Securities Lender (each, respectively, for certain Invesco Funds) |
|
E.K.
Riley Investments LLC |
Broker
(for certain Invesco Funds) |
|
Empirical
Research Partners |
Analyst
(for certain Invesco Funds) |
|
Finacorp
Securities |
Broker
(for certain Invesco Funds) |
|
First
Miami Securities |
Broker
(for certain Invesco Funds) |
|
First
Southwest Co. |
Broker
(for certain Invesco Funds) |
|
First
Tryon Securities |
Broker
(for certain Invesco Funds) |
|
Fitch,
Inc. |
Rating
& Ranking Agency (for certain Invesco Funds) |
|
FT
Interactive Data Corporation |
Pricing
Vendor |
|
FTN
Financial Group |
Broker
(for certain Invesco Funds) |
|
GainsKeeper
|
Software
Provider (for certain Invesco Funds) |
|
GCom2
Solutions |
Software
Provider (for certain Invesco Funds) |
|
George
K. Baum & Company |
Broker
(for certain Invesco Funds) |
|
Glass,
Lewis & Co. |
System
Provider (for certain Invesco Funds) |
|
Global
Trading Analytics, LLC |
Software
Provider |
|
Global
Trend Alert |
Analyst
(for certain Invesco Funds) |
|
Hattier,
Sanford & Reynoir |
Broker
(for certain Invesco Funds) |
|
Hutchinson,
Shockey, Erley & Co. |
Broker
(for certain Invesco Funds) |
|
ICI
(Investment Company Institute) |
Analyst
(for certain Invesco Funds) |
|
ICRA
Online Ltd. |
Rating
& Ranking Agency (for certain Invesco Funds) |
B-1
|
Service
Provider |
Disclosure
Category |
|
Lincoln
Investment Advisors
Corporation
|
Other
|
|
iMoneyNet,
Inc. |
Rating
& Ranking Agency (for certain Invesco Funds) |
|
Initram
Data, Inc. |
Pricing
Vendor |
|
Institutional
Shareholder Services,
Inc.
|
Proxy
Voting Service (for certain Invesco Funds) |
|
Invesco
Investment Services, Inc. |
Transfer
Agent |
|
Invesco
Senior Secured
Management,
Inc. |
System
Provider (for certain Invesco Funds) |
|
Investment
Company Institute |
Analyst
(for certain Invesco Funds) |
|
Investortools,
Inc. |
Broker
(for certain Invesco Funds) |
|
ITG,
Inc. |
Pricing
Vendor (for certain Invesco Funds) |
|
J.P.
Morgan Chase Bank |
Custodian
and Securities Lender (each, respectively, for certain Invesco Funds) |
|
J.P.
Morgan Securities, Inc. |
Analyst
(for certain Invesco Funds) |
|
J.P.
Morgan Securities Inc./Citigroup
Global
Markets Inc./JPMorgan
Chase
Bank, N.A. |
Lender
(for certain Invesco Funds) |
|
J.P.
Morgan Securities |
Broker
(for certain Invesco Funds) |
|
Janney
Montgomery Scott LLC |
Broker
(for certain Invesco Funds) |
|
John
Hancock Investment
Management
Services, LLC |
Sub-advisor
(for certain sub-advised accounts) |
|
Jorden
Burt LLP |
Special
Insurance Counsel |
|
KeyBanc
Capital Markets, Inc. |
Broker
(for certain Invesco Funds) |
|
Kramer
Levin Naftalis & Frankel LLP |
Legal
Counsel |
|
Lebenthal
& Co. LLC |
Broker
(for certain Invesco Funds) |
|
Lipper,
Inc. |
Rating
& Ranking Agency (for certain Invesco Funds) |
|
Loan
Pricing Corporation |
Pricing
Service (for certain Invesco Funds) |
|
Loop
Capital Markets |
Broker
(for certain Invesco Funds) |
|
M.R.
Beal |
Broker
(for certain Invesco Funds) |
|
MarkIt
Group Limited |
Pricing
Vendor (for certain Invesco Funds) |
|
Merrill
Communications LLC |
Financial
Printer |
|
Mesirow
Financial, Inc. |
Broker
(for certain Invesco Funds) |
|
Middle
Office Solutions |
Software
Provider |
|
Moody's
Investors Service |
Rating
& Ranking Agency (for certain Invesco Funds) |
|
Morgan
Keegan & Company, Inc. |
Broker
(for certain Invesco Funds) |
|
Morrison
Foerster LLP |
Legal
Counsel |
|
MS
Securities Services, Inc. and
Morgan
Stanley & Co. Incorporated |
Securities
Lender (for certain Invesco Funds) |
|
Muzea
Insider Consulting Services,
LLC
|
Analyst
(for certain Invesco Funds) |
|
Ness
USA Inc. |
System
provider |
|
Noah
Financial, LLC |
Analyst
(for certain Invesco Funds) |
|
Omgeo
LLC |
Trading
System |
|
Piper
Jaffray |
Analyst
(for certain Invesco Funds) |
|
Prager,
Sealy & Co. |
Broker
(for certain Invesco Funds) |
|
PricewaterhouseCoopers
LLP |
Independent
Registered Public Accounting Firm (for all Invesco Funds) |
|
Protective
Securities |
Broker
(for certain Invesco Funds) |
|
Ramirez
& Co., Inc. |
Broker
(for certain Invesco Funds) |
|
Raymond
James & Associates, Inc. |
Broker
(for certain Invesco Funds) |
|
RBC
Capital Markets |
Analyst
(for certain Invesco Funds) |
|
RBC
Dain Rauscher Incorporated |
Broker
(for certain Invesco Funds) |
|
Reuters
America LLC |
Pricing
Service (for certain Invesco Funds) |
|
Rice
Financial Products |
Broker
(for certain Invesco Funds) |
|
Robert
W. Baird & Co. Incorporated |
Broker
(for certain Invesco Funds) |
B-2
|
Service
Provider |
Disclosure
Category |
|
RR
Donnelley Financial |
Financial
Printer |
|
Ryan
Beck & Co. |
Broker
(for certain Invesco Funds) |
|
SAMCO
Capital Markets, Inc. |
Broker
(for certain Invesco Funds) |
|
Seattle-Northwest
Securities
Corporation
|
Broker
(for certain Invesco Funds) |
|
Siebert
Brandford Shank & Co.,
L.L.C.
|
Broker
(for certain Invesco Funds) |
|
Simon
Printing Company |
Financial
Printer |
|
Southwest
Precision Printers, Inc. |
Financial
Printer |
|
Southwest
Securities |
Broker
(for certain Invesco Funds) |
|
Standard
and Poor's/Standard and
Poor's
Securities Evaluations, Inc. |
Pricing
Service and Rating and Ranking Agency (each, respectively, for certain Invesco Funds) |
|
StarCompliance,
Inc. |
System
Provider |
|
State
Street Bank and Trust
Company
|
Custodian,
Lender, Securities Lender, and System Provider (each, respectively, for certain
Invesco
Funds) |
|
Sterne,
Agee & Leach, Inc. |
Broker
(for certain Invesco Funds) |
|
Stifel,
Nicolaus & Company,
Incorporated
|
Broker
(for certain Invesco Funds) |
|
Stradley
Ronon Stevens & Young,
LLP
|
Legal
Counsel |
|
The
Bank of New York |
Custodian
and Securities Lender (each, respectively, for certain Invesco Funds) |
|
The
MacGregor Group, Inc. |
Software
Provider |
|
The
Savader Group LLC |
Broker
(for certain Invesco Funds) |
|
Thomson
Information Services
Incorporated
|
Software
Provider |
|
TradingHub
Group Ltd. |
Analyst
(for certain Invesco Funds) |
|
UBS
Financial Services, Inc. |
Broker
(for certain Invesco Funds) |
|
UMB
Bank, N.A. |
Custodian
and Securities Lender (each, respectively, for certain Invesco Funds) |
|
VCI
Group Inc. |
Financial
Printer |
|
Vining
Sparks IBG |
Broker
(for Certain Invesco Funds) |
|
W.H
Mell Associates, Inc. |
Broker
(for certain Invesco Funds) |
|
Wachovia
National Bank, N.A. |
Broker
(for certain Invesco Funds) |
|
Western
Lithograph |
Financial
Printer |
|
Wiley
Bros. Aintree Capital L.L.C. |
Broker
(for certain Invesco Funds) |
|
William
Blair & Co. |
Broker
(for certain Invesco Funds) |
|
XSP,
LLC/Solutions Plus, Inc. |
Software
Provider |
B-3
APPENDIX
C - TRUSTEES AND OFFICERS
As
of March 31, 2023
The
address of each trustee and officer is 11 Greenway Plaza, Suite 1000, Houston, Texas 77046-1173. The
trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically
provided in the Trust's organizational documents. Each officer serves for a one year term or until their successors are elected and qualified.
Column two below includes length of time served with predecessor entities, if any.
Interested
Trustee
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s)
During
Past 5 Years |
Number
of
Funds
in
Fund
Complex
Overseen
by
Trustee
|
Other
Trusteeship(s)/
Directorship
Held by
Trustee/Director
During
Past
5 Years |
|
Martin
L. Flanagan1
- 1960 |
Trustee
and
Vice
Chair |
2007
|
Executive
Director, Chief
Executive
Officer and
President,
Invesco Ltd.
(ultimate
parent of Invesco
and
a global investment
management
firm);
Trustee
and Vice Chair,
The
Invesco Funds; Vice
Chair,
Investment
Company
Institute; and
Member
of Executive
Board,
SMU Cox School
of
Business
Formerly:
Advisor to the
Board,
Invesco Advisers,
Inc.
(formerly known as
Invesco
Institutional
(N.A.),
Inc.); Chairman
and
Chief Executive
Officer,
Invesco Advisers,
Inc.
(registered investment
adviser);
Director,
Chairman,
Chief Executive
Officer
and President,
Invesco
Holding Company
(US),
Inc. (formerly IVZ
Inc.)
(holding company),
Invesco
Group Services,
Inc.
(service provider) and
Invesco
North American
Holdings,
Inc. (holding
company);
Director, Chief
Executive
Officer and
President,
Invesco Holding
Company
Limited (parent
of
Invesco and a global
investment
management
firm);
Director, Invesco
Ltd.;
Chairman,
Investment
Company
Institute
and President,
Co-Chief
Executive
Officer,
Co-President,
Chief
Operating Officer |
175
|
None
|
C-1
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s)
During
Past 5 Years |
Number
of
Funds
in
Fund
Complex
Overseen
by
Trustee
|
Other
Trusteeship(s)/
Directorship
Held by
Trustee/Director
During
Past
5 Years |
|
|
|
|
and
Chief Financial
Officer,
Franklin
Resources,
Inc. (global
investment
management
organization)
|
|
|
1.
Mr.
Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer
of the Adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the Adviser.
Independent
Trustees
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s)
During
Past 5 Years |
Number
of
Funds
in
Fund
Complex
Overseen
by
Trustee
|
Other
Trusteeship(s)/
Directorship
Held by
Trustee/Director
During
Past
5 Years |
|
|
|
|
|
|
|
|
Beth
Ann Brown – 1968 |
Trustee
(2019)
and
Chair
(August
2022) |
2019
|
Independent
Consultant
Formerly:
Head of
Intermediary
Distribution,
Managing
Director,
Strategic
Relations,
Managing
Director, Head
of
National Accounts,
Senior
Vice President,
National
Account Manager
and
Senior Vice President,
Key
Account Manager,
Columbia
Management
Investment
Advisers LLC;
Vice
President, Key
Account
Manager, Liberty
Funds
Distributor, Inc.;
and
Trustee of certain
Oppenheimer
Funds |
175
|
Director,
Board of
Directors
of Caron
Engineering
Inc.;
Advisor,
Board of
Advisors
of Caron
Engineering
Inc.;
President
and Director,
Acton
Shapleigh Youth
Conservation
Corps
(non-profit);
and
formerly
President and
Director
of
Grahamtastic
Connection
(non-profit) |
|
Cynthia
Hostetler —1962 |
Trustee
|
2017
|
Non-Executive
Director
and
Trustee of a number
of
public and private
business
corporations
Formerly:
Director,
Aberdeen
Investment
Funds
(4 portfolios);
Director,
Artio Global
Investment
LLC (mutual
fund
complex); Director,
Edgen
Group, Inc.
(specialized
energy and
infrastructure
products
distributor);
Director,
Genesee
& Wyoming, Inc.
(railroads);
Head of
Investment
Funds and
Private
Equity, Overseas
Private
Investment
Corporation;
President, |
175
|
Resideo
Technologies
(smart
home
technology);
Vulcan
Materials
Company
(construction
materials
company);
Trilinc
Global
Impact Fund;
Textainer
Group
Holdings,
(shipping
container
leasing
company);
Investment
Company
Institute
(professional
organization);
and
Independent
Directors
Council
(professional
organization)
|
C-2
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s)
During
Past 5 Years |
Number
of
Funds
in
Fund
Complex
Overseen
by
Trustee
|
Other
Trusteeship(s)/
Directorship
Held by
Trustee/Director
During
Past
5 Years |
|
|
|
|
First
Manhattan
Bancorporation,
Inc.; and
Attorney,
Simpson
Thacher
& Bartlett LLP |
|
|
|
Eli
Jones – 1961 |
Trustee
|
2016
|
Professor
and Dean
Emeritus,
Mays Business
School
at Texas A&M
University
Formerly:
Dean of Mays
Business
School at Texas
A&M
University; Professor
and
Dean, Walton College
of
Business, University of
Arkansas
and E.J. Ourso
College
of Business,
Louisiana
State University;
and
Director, Arvest Bank |
175
|
Insperity,
Inc. (formerly
known
as Administaff)
(human
resources
provider);
Board
Member
of the regional
board,
First Financial
Bank
Texas; and Board
Member,
First Financial
Bankshares,
Inc. Texas
(FFIN)
|
|
Elizabeth
Krentzman – 1959 |
Trustee
|
2019
|
Formerly:
Principal and
Chief
Regulatory Advisor
for
Asset Management
Services
and U.S. Mutual
Fund
Leader of Deloitte &
Touche
LLP; General
Counsel
of the Investment
Company
Institute (trade
association);
National
Director
of the Investment
Management
Regulatory
Consulting
Practice,
Principal,
Director and
Senior
Manager of
Deloitte
& Touche LLP;
Assistant
Director of the
Division
of Investment
Management
- Office of
Disclosure
and Investment
Adviser
Regulation of the
U.S.
Securities and
Exchange
Commission
and
various positions with
the
Division of Investment
Management
– Office of
Regulatory
Policy of the
U.S.
Securities and
Exchange
Commission;
Associate
at Ropes &
Gray
LLP; and Trustee of
certain
Oppenheimer
Funds
|
175
|
Formerly:
Member of
the
Cartica Funds
Board
of Directors
(private
investment
funds);
Trustee of the
University
of Florida
National
Board
Foundation;
and
Member
of the
University
of Florida
Law
Center
Association,
Inc. Board
of
Trustees, Audit
Committee
and
Membership
Committee
|
|
Anthony
J. LaCava, Jr.–
1956
|
Trustee
|
2019
|
Formerly:
Director and
Member
of the Audit
Committee,
Blue Hills
Bank
(publicly traded
financial
institution) and |
175
|
Blue
Hills Bank;
Member
and
Chairman,
Bentley
University,
Business
School
Advisory |
C-3
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s)
During
Past 5 Years |
Number
of
Funds
in
Fund
Complex
Overseen
by
Trustee
|
Other
Trusteeship(s)/
Directorship
Held by
Trustee/Director
During
Past
5 Years |
|
|
|
|
Managing
Partner, KPMG
LLP
|
|
Council;
and
Nominating
Committee,
KPMG
LLP |
|
Prema
Mathai-Davis – 1950 |
Trustee
|
2001
|
Retired
Formerly:
Co-Founder &
Partner
of Quantalytics
Research,
LLC, (a
FinTech
Investment
Research
Platform for the
Self-Directed
Investor);
Trustee
of YWCA
Retirement
Fund; CEO of
YWCA
of the USA; Board
member
of the NY
Metropolitan
Transportation
Authority;
Commissioner
of the NYC
Department
of Aging; and
Board
member of Johns
Hopkins
Bioethics Institute |
175
|
Member
of Board of
Positive
Planet US
(non-profit)
and
HealthCare
Chaplaincy
Network
(non-profit) |
|
Joel
W. Motley – 1952 |
Trustee
|
2019
|
Director
of Office of
Finance,
Federal Home
Loan
Bank System;
Managing
Director of
Carmona
Motley Inc.
(privately
held financial
advisor);
Member of the
Council
on Foreign
Relations
and its Finance
and
Budget Committee;
Chairman
Emeritus of
Board
of Human Rights
Watch
and Member of its
Investment
Committee;
Member
of Investment
Committee
and Board of
Historic
Hudson Valley
(non-profit
cultural
organization);
Member of
Board
of Blue Ocean
Acquisition
Corp.; and
Member
of the Vestry and
Investment
Committee of
Trinity
Church Wall Street
Formerly:
Managing
Director
of Public Capital
Advisors,
LLC (privately
held
financial advisor);
Managing
Director of
Carmona
Motley Hoffman,
Inc.
(privately held
financial
advisor); Trustee
of
certain Oppenheimer
Funds;
and Director of |
175
|
Member
of Board of
Trust
for Mutual
Understanding
(non-
profit
promoting the
arts
and environment);
Member
of Board of
Greenwall
Foundation
(bioethics
research
foundation)
and its
Investment
Committee;
Member
of Board of
Friends
of the LRC
(non-profit
legal
advocacy);
and Board
Member
and
Investment
Committee
Member
of Pulitzer
Center
for Crisis
Reporting
(non-profit
journalism)
|
C-4
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s)
During
Past 5 Years |
Number
of
Funds
in
Fund
Complex
Overseen
by
Trustee
|
Other
Trusteeship(s)/
Directorship
Held by
Trustee/Director
During
Past
5 Years |
|
|
|
|
Columbia
Equity Financial
Corp.
(privately held
financial
advisor) |
|
|
|
Teresa
M. Ressel — 1962 |
Trustee
|
2017
|
Non-executive
director
and
trustee of a number of
public
and private
business
corporations
Formerly:
Chief Executive
Officer,
UBS Securities
LLC
(investment banking);
Chief
Operating Officer,
UBS
AG Americas
(investment
banking); Sr.
Management
Team
Olayan
America, The
Olayan
Group
(international
investor/commercial/industrial);
Assistant
Secretary for
Management
& Budget
and
Designated Chief
Financial
Officer, U.S.
Department
of Treasury |
175
|
None
|
|
|
|
|
|
|
|
|
Robert
C. Troccoli – 1949 |
Trustee
|
2016
|
Retired
Formerly:
Adjunct
Professor,
University of
Denver
– Daniels College
of
Business; and
Managing
Partner, KPMG
LLP
|
175
|
None
|
|
Daniel
S. Vandivort –1954 |
Trustee
|
2019
|
President,
Flyway
Advisory
Services LLC
(consulting
and property
management)
Formerly:
President and
Chief
Investment Officer,
previously
Head of Fixed
Income,
Weiss Peck and
Greer/Robeco
Investment
Management;
Trustee and
Chair,
Weiss Peck and
Greer
Funds Board; and
various
capacities at CS
First
Boston including
Head
of Fixed Income at
First
Boston Asset |
175
|
Formerly:
Trustee and
Governance
Chair,
Oppenheimer
Funds;
Treasurer,
Chairman of
the
Audit and Finance
Committee,
Huntington
Disease
Foundation of
America.
|
C-5
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s)
During
Past 5 Years |
Number
of
Funds
in
Fund
Complex
Overseen
by
Trustee
|
Other
Trusteeship(s)/
Directorship
Held by
Trustee/Director
During
Past
5 Years |
|
|
|
|
Management
|
|
|
Officers
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s) During Past 5 Years |
|
Sheri
Morris – 1964 |
President
and
Principal
Executive
Officer
|
1999
|
Director,
Invesco Trust Company; Head of Global Fund Services,
Invesco
Ltd.; President and Principal Executive Officer, The
Invesco
Funds; Vice President, Invesco Exchange-Traded Fund
Trust,
Invesco Exchange-Traded Fund Trust II, Invesco India
Exchange-Traded
Fund Trust, Invesco Actively Managed
Exchange-Traded
Fund Trust, Invesco Actively Managed
Exchange-Traded
Commodity Fund Trust and Invesco Exchange-
Traded
Self-Indexed Fund Trust; and Vice President,
OppenheimerFunds,
Inc.
Formerly:
Vice President, Treasurer and Principal Financial
Officer,
The Invesco Funds; Vice President, Invesco AIM Advisers,
Inc.,
Invesco AIM Capital Management, Inc. and Invesco AIM
Private
Asset Management, Inc.; Assistant Vice President and
Assistant
Treasurer, The Invesco Funds; Vice President and
Assistant
Vice President, Invesco Advisers, Inc.; Assistant Vice
President,
Invesco AIM Capital Management, Inc. and Invesco
AIM
Private Asset Management, Inc.; Treasurer, Invesco
Exchange-Traded
Fund Trust, Invesco Exchange-Traded Fund
Trust
II, Invesco India Exchange-Traded Fund Trust and Invesco
Actively
Managed Exchange-Traded Fund Trust; and Senior Vice
President,
Invesco Advisers, Inc. (formerly known as Invesco
Institutional
(N.A.), Inc.) (registered investment adviser) |
|
Melanie
Ringold – 1975 |
Senior
Vice
President,
Chief
Legal
Officer
and
Secretary |
2023
|
Head
of Legal of the Americas, Invesco Ltd.; Senior Vice
President
and Secretary, Invesco Advisers, Inc. (formerly known
as
Invesco Institutional (N.A.), Inc.) (registered investment
adviser);
Secretary, Invesco Distributors, Inc. (formerly known as
Invesco
AIM Distributors, Inc.); Secretary, Invesco Investment
Services,
Inc. (formerly known as Invesco AIM Investment
Services,
Inc.); Senior Vice President, Chief Legal Officer and
Secretary,
The Invesco Funds; Secretary, Invesco Investment
Advisers
LLC and Invesco Capital Markets, Inc.; Chief Legal
Officer,
Invesco Exchange-Traded Fund Trust, Invesco Exchange-
Traded
Fund Trust II, Invesco India Exchange-Traded Fund Trust,
Invesco
Actively Managed Exchange-Traded Fund Trust, Invesco
Actively
Managed Exchange-Traded Commodity Fund Trust and
Invesco
Exchange-Traded Self-Indexed Fund Trust; Secretary and
Vice
President, Harbourview Asset Management Corporation;
Secretary
and Senior Vice President, OppenheimerFunds, Inc.
and
Invesco Managed Accounts, LLC; Secretary and Senior Vice
President,
OFI SteelPath, Inc.; Secretary and Senior Vice
President,
Oppenheimer Acquisition Corp.; Secretary, SteelPath
Funds
Remediation LLC; and Secretary and Senior Vice
President,
Trinity Investment Management Corporation
Formerly:
Assistant Secretary, Invesco Distributors, Inc., Invesco
Advisers,
Inc., Invesco Investment Services, Inc., Invesco Capital
Markets,
Inc., Invesco Capital Management LLC, and Invesco
Investment
Advisers LLC; and Assistant Secretary and Assistant
Vice
President, Invesco Funds |
C-6
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s) During Past 5 Years |
|
Andrew
R. Schlossberg –
1974
|
Senior
Vice
President
|
2019
|
Senior
Vice President, Invesco Group Services, Inc.; Head of the
Americas
and Senior Managing Director, Invesco Ltd.; Director
and
Senior Vice President, Invesco Advisers, Inc. (formerly known
as
Invesco Institutional (N.A.), Inc.) (registered investment
adviser);
Director and Chairman, Invesco Investment Services,
Inc.
(formerly known as Invesco AIM Investment Services, Inc.)
(registered
transfer agent); Senior Vice President, The Invesco
Funds;
and Director, Invesco Investment Advisers LLC (formerly
known
as Van Kampen Asset Management)
Formerly:
Director, President and Chairman, Invesco Insurance
Agency,
Inc.; Director, Invesco UK Limited; Director and Chief
Executive,
Invesco Asset Management Limited and Invesco Fund
Managers
Limited; Assistant Vice President, The Invesco Funds;
Senior
Vice President, Invesco Advisers, Inc. (formerly known as
Invesco
Institutional (N.A.), Inc.) (registered investment adviser);
Director
and Chief Executive, Invesco Administration Services
Limited
and Invesco Global Investment Funds Limited; Director,
Invesco
Distributors, Inc.; Head of EMEA, Invesco Ltd.; President,
Invesco
Actively Managed Exchange-Traded Commodity Fund
Trust,
Invesco Actively Managed Exchange-Traded Fund Trust,
Invesco
Exchange-Traded Fund Trust, Invesco Exchange-Traded
Fund
Trust II and Invesco India Exchange-Traded Fund Trust; and
Managing
Director and Principal Executive Officer, Invesco
Capital
Management LLC |
|
John
M. Zerr – 1962 |
Senior
Vice
President
|
2006
|
Chief
Operating Officer of the Americas; Senior Vice President,
Invesco
Advisers, Inc. (formerly known as Invesco Institutional
(N.A.),
Inc.) (registered investment adviser); Senior Vice
President,
Invesco Distributors, Inc. (formerly known as Invesco
AIM
Distributors, Inc.); Director and Vice President, Invesco
Investment
Services, Inc. (formerly known as Invesco AIM
Investment
Services, Inc.); Senior Vice President, The Invesco
Funds;
Managing Director, Invesco Capital Management LLC;
Director,
Invesco Investment Advisers LLC (formerly known as
Van
Kampen Asset Management); Senior Vice President, Invesco
Capital
Markets, Inc. (formerly known as Van Kampen Funds
Inc.);
Manager, Invesco Indexing LLC; Manager, Invesco
Specialized
Products, LLC; Member, Invesco Canada Funds
Advisory
Board; Director, President and Chief Executive Officer,
Invesco
Corporate Class Inc. (corporate mutual fund company);
Director,
Chairman, President and Chief Executive Officer,
Invesco
Canada Ltd. (formerly known as Invesco Trimark
Ltd./Invesco
Trimark Ltèe) (registered investment adviser and
registered
transfer agent); President, Invesco, Inc.; President,
Invesco
Global Direct Real Estate Feeder GP Ltd.; President,
Invesco
IP Holdings (Canada) Ltd; President, Invesco Global
Direct
Real Estate GP Ltd.; President, Invesco Financial Services
Ltd/Services
Financiers Invesco Ltée; and Director and Chairman,
Invesco
Trust Company
Formerly:
President, Trimark Investments Ltd/Services Financiers
Invesco
Ltee; Director and Senior Vice President, Invesco
Insurance
Agency, Inc.; Director and Senior Vice President,
Invesco
Management Group, Inc. (formerly known as Invesco AIM
Management
Group, Inc.); Secretary and General Counsel,
Invesco
Management Group, Inc. (formerly known as Invesco AIM
Management
Group, Inc.); Secretary, Invesco Investment
Services,
Inc. (formerly known as Invesco AIM Investment
Services,
Inc.); Chief Legal Officer and Secretary, The Invesco
Funds;
Secretary and General Counsel, Invesco Investment |
C-7
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s) During Past 5 Years |
|
|
|
|
Advisers
LLC (formerly known as Van Kampen Asset
Management);
Secretary and General Counsel, Invesco Capital
Markets,
Inc. (formerly known as Van Kampen Funds Inc.); Chief
Legal
Officer, Invesco Exchange-Traded Fund Trust, Invesco
Exchange-Traded
Fund Trust II, Invesco India Exchange-Traded
Fund
Trust, Invesco Actively Managed Exchange-Traded Fund
Trust,
Invesco Actively Managed Exchange-Traded Commodity
Fund
Trust and Invesco Exchange-Traded Self-Indexed Fund
Trust;
Secretary, Invesco Indexing LLC; Director, Secretary,
General
Counsel and Senior Vice President, Van Kampen
Exchange
Corp.; Director, Vice President and Secretary, IVZ
Distributors,
Inc. (formerly known as INVESCO Distributors, Inc.);
Director
and Vice President, INVESCO Funds Group, Inc.;
Director
and Vice President, Van Kampen Advisors Inc.; Director,
Vice
President, Secretary and General Counsel, Van Kampen
Investor
Services Inc.; Director and Secretary, Invesco
Distributors,
Inc. (formerly known as Invesco AIM Distributors,
Inc.);
Director, Senior Vice President, General Counsel and
Secretary,
Invesco AIM Advisers, Inc. and Van Kampen
Investments
Inc.; Director, Vice President and Secretary, Fund
Management
Company; Director, Senior Vice President,
Secretary,
General Counsel and Vice President, Invesco AIM
Capital
Management, Inc.; and Chief Operating Officer and
General
Counsel, Liberty Ridge Capital, Inc. (an investment
adviser)
|
|
Tony
Wong – 1973 |
Senior
Vice
President
|
2023
|
Senior
Managing Director, Invesco Ltd; Director, Chairman, Chief
Executive
Officer and President, Invesco Advisers, Inc; Director
and
Chairman, Invesco Private Capital, Inc., INVESCO Private
Capital
Investments, Inc. and INVESCO Realty, Inc.; Director,
Invesco
Senior Secured Management, Inc.; President, Invesco
Managed
Accounts, LLC and SNW Asset Management
Corporation;
and Senior Vice President, The Invesco Funds.
Formerly:
Assistant Vice President, The Invesco Funds; and Vice
President,
Invesco Advisers, Inc. |
|
Stephanie
C. Butcher -
1971
|
Senior
Vice
President
|
2023
|
Senior
Managing Director, Invesco Ltd.; Senior Vice President,
The
Invesco Funds; Director and Chief Executive Officer, Invesco
Asset
Management Limited. |
|
Adrien
Deberghes – 1967 |
Principal
Financial
Officer,
Treasurer
and
Vice
President |
2020
|
Head
of the Fund Office of the CFO and Fund Administration;
Vice
President, Invesco Advisers, Inc.; Principal Financial Officer,
Treasurer
and Vice President, The Invesco Funds; and Vice
President,
Invesco Exchange-Traded Fund Trust, Invesco
Exchange-Traded
Fund Trust II, Invesco India Exchange-Traded
Fund
Trust, Invesco Actively Managed Exchange-Traded Fund
Trust,
Invesco Actively Managed Exchange-Traded Commodity
Fund
Trust and Invesco Exchange-Traded Self-Indexed Fund
Trust
Formerly:
Senior Vice President and Treasurer, Fidelity
Investments
|
|
Crissie
M. Wisdom – 1969 |
Anti-Money
Laundering
Compliance
Officer
|
2013
|
Anti-Money
Laundering and OFAC Compliance Officer for Invesco
U.S.
entities including: Invesco Advisers, Inc. and its affiliates,
Invesco
Capital Markets, Inc., Invesco Distributors, Inc., Invesco
Investment
Services, Inc., The Invesco Funds, Invesco Capital
Management,
LLC, Invesco Trust Company; and Fraud
Prevention
Manager for Invesco Investment Services, Inc. |
|
Todd
F. Kuehl – 1969 |
Chief
|
2020
|
Chief
Compliance Officer, Invesco Advisers, Inc. (registered |
C-8
|
Name,
Year of Birth |
Position(s)
Held
with
the Trust |
Trustee
and/or
Officer
Since |
Principal
Occupation(s) During Past 5 Years |
|
|
Compliance
Officer
and
Senior
Vice
President
|
|
investment
adviser); and Chief Compliance Officer and Senior
Vice
President, The Invesco Funds
Formerly:
Managing Director and Chief Compliance Officer, Legg
Mason
(Mutual Funds); Chief Compliance Officer, Legg Mason
Private
Portfolio Group (registered investment adviser) |
|
James
Bordewick, Jr. –
1959
|
Senior
Vice
President
and
Senior
Officer |
2022
|
Senior
Vice President and Senior Officer, The Invesco Funds; and
Chief
Legal Officer, KingsCrowd, Inc. (research and analytical
platform
for investment in private capital markets)
Formerly,
Chief Operating Officer and Head of Legal and
Regulatory,
Netcapital (private capital investment platform);
Managing
Director, General Counsel of asset management and
Chief
Compliance Officer for asset management and private
banking,
Bank of America Corporation; Chief Legal Officer,
Columbia
Funds and BofA Funds; Senior Vice President and
Associate
General Counsel, MFS Investment Management; Chief
Legal
Officer, MFS Funds; Associate, Ropes & Gray; Associate,
Gaston
Snow & Ely Bartlett. |
C-9
Trustee
Ownership of Fund Shares as of December 31, 2022
C-10
APPENDIX
D - TRUSTEE COMPENSATION TABLE
Set
forth below is information regarding compensation paid or accrued for each trustee of the Trust who was
not affiliated with Invesco during the year ended December 31, 2022, unless otherwise noted.
D-1
APPENDIX
E - PROXY POLICY AND PROCEDURES
Invesco’s
Policy Statement on Global Corporate Governance and Proxy Voting
The
Adviser and each sub-adviser rely on this policy. In addition, Invesco Asset Management (Japan)
Limited and Invesco Asset Management (India) Pvt. Ltd. have also adopted operating guidelines and procedures for proxy voting particular
to each regional investment center. Such guidelines and procedures are attached hereto.
E-1
Invesco’s
Policy Statement on Global
Corporate Governance and
Proxy Voting
Corporate Governance and
Proxy Voting
Effective
January 2023
E-2
I.
INTRODUCTION
Invesco
Ltd. and its wholly owned investment adviser subsidiaries (collectively, “Invesco”, the “Company”, “our”
or “we”) has adopted and implemented this Policy Statement on Global Corporate Governance and Proxy Voting (“Global
Proxy Voting Policy” or “Policy”), which it believes describes policies and procedures reasonably designed to ensure
that proxies are voted in the best interests of its clients. This Policy is intended to help Invesco’s clients understand our commitment
to responsible investing and proxy voting, as well as the good governance principles that inform our approach to engagement and voting
at shareholder meetings.
A.
Our Commitment to Environmental, Social and Governance Investment Stewardship and
Proxy Voting
Proxy Voting
Our
commitment to environmental, social and governance (ESG) principles is a core element of our ambition to be the most client-centric asset
manager. We aspire to incorporate ESG considerations into all our investment capabilities in the context of financial materiality in the
best interest of our clients. In our role as stewards of our clients’ investments, we regard our stewardship activities, including
engagement and the exercise of proxy voting rights, as an essential component of our fiduciary duty to maximize long-term shareholder
value. Our Global ESG team functions as a center of excellence, providing specialist insights on research, engagement, voting, integration,
tools, and client and product solutions with investment teams implementing ESG approaches appropriate to asset class and investment style.
Much of our work is rooted in fundamental research and frequent dialogue with companies during due diligence and monitoring of our investments.
Invesco
views proxy voting as an integral part of its investment management responsibilities. The proxy voting process at Invesco focuses on protecting
clients’ rights and promoting governance structures and practices that reinforce the accountability of corporate management and
boards of directors to shareholders.
The
voting decision lies with our portfolio managers and analysts with input and support from our Global ESG team. Our proprietary proxy voting
platform (“PROXYintel”) facilitates implementation of voting decisions and rationales across global investment teams. Our
good governance principles, governance structure and processes are designed to ensure that proxy votes are cast in accordance with clients’
best interests.
As
a large active investor, Invesco is well placed to use our ESG expertise and beliefs to engage directly with portfolio companies or by
collaborative means in ways which drive corporate change that we believe will enhance shareholder value. We take our responsibility as
active owners very seriously and see engagement as an opportunity to encourage continual improvement and ensure that our clients’
interests are represented and protected. Dialogue with portfolio companies is a core part of the investment process. Invesco may engage
with investee companies to discuss environmental, social and governance issues throughout the year or on specific ballot items to be voted
on.
Our
passive strategies and certain other client accounts managed in accordance with fixed income, money market and index strategies (including
exchange-traded funds) will typically vote in line with the majority holder of the active-equity shares held by Invesco outside of those
strategies. Invesco refers to this approach as “Majority Voting”. This process of Majority Voting ensures that our passive
strategies benefit from the engagement and deep dialogue of our active investors, which Invesco believes benefits shareholders in passively-managed
accounts. In the absence of overlap between the active and passive holders, the passive holders vote in line with our internally developed
voting guidelines (as defined below). Portfolio managers and analysts for accounts employing Majority Voting retain full discretion to
override Majority Voting and to vote the shares as they determine to be in the best interest of those accounts, absent certain types of
conflicts of interest, which are discussed elsewhere in this Policy.
B.
Applicability of Policy
E-3
Invesco
may be granted by its clients the authority to vote the proxies of securities held in client portfolios. Invesco’s investment teams
vote proxies on behalf of Invesco-sponsored funds and both fund and non-fund advisory clients that have explicitly granted Invesco authority
in writing to vote proxies on their behalf. In the case of institutional or sub-advised clients, Invesco will vote the proxies in accordance
with this Policy unless the client agreement specifies that the client retains the right to vote or has designated a named fiduciary to
direct voting.
This
Policy applies to all entities in Exhibit A. Due to regional or asset-class specific considerations, certain entities may have local proxy
voting guidelines or policies and procedures that differ from this Policy. In the event that local policies and the Global Policy differ,
the local policy will apply. These entities are also listed in Exhibit A and include proxy voting guidelines specific to: Invesco Asset
Management (Japan) Limited, Invesco Asset Management (India) Pvt. Ltd, Invesco Taiwan Ltd and Invesco Capital Markets, Inc. for Invesco
Unit Investment Trusts.
II.
GLOBAL
PROXY VOTING OPERATIONAL PROCEDURES
Invesco’s
global proxy voting operational procedures are in place to implement the provisions of this Policy (the “Procedures”). At
Invesco, proxy voting is conducted by our investment teams through PROXYintel. Our investment teams globally are supported by Invesco’s
centralized team of ESG professionals and proxy voting specialists. Invesco’s Global ESG team oversees the proxy policy, operational
procedures and implementation, inputs to analysis and research,
vote execution oversight and leads the Global Invesco Proxy Advisory
Committee (“Global IPAC”).
Invesco
aims to vote all proxies where we have been granted voting authority in accordance with this Policy,
as implemented by the Procedures. Our portfolio managers and analysts
review voting items based on their individual merits and retain full discretion on vote execution conducted through our proprietary proxy
voting platform. Invesco may supplement its internal research with information from independent third parties, such as proxy advisory
firms.
A.
Proprietary Proxy Voting Platform
Invesco’s
proprietary proxy voting platform is supported by a dedicated team of internal proxy specialists. PROXYintel streamlines the proxy voting
process by providing our investment teams globally with direct access to meeting information and proxies, external proxy research and
ESG ratings, as well as related functions, such as management of conflicts of interest issues, significant votes, global reporting and
record-keeping capabilities. Managing these processes internally, as opposed to relying on third parties, is designed to provide Invesco
greater quality control, oversight and independence in the proxy administration process.
Historical
proxy voting information is stored to build institutional knowledge across the Invesco complex with respect to individual companies and
proxy issues. Certain investment teams also use PROXYintel to access third-party proxy research and ESG ratings.
Our
proprietary systems facilitate internal control and oversight of the voting process. Invesco may choose to leverage this capability to
automatically vote proxies based on its internally developed custom voting guidelines and in circumstances where Majority Voting applies.
B.
Oversight of Voting Operations
Invesco’s
Global ESG team provides oversight of the proxy voting verification processes which include: (i) the monthly global vote audit review
of votes cast containing documented rationales of conflicts of interest votes, market and operational limitations; (ii) the quarterly
sampling of proxy votes cast to determine that (a) Invesco is voting consistently with this Policy and (b) third-party proxy advisory
firms’ methodologies in formulating the vote recommendation are consistent with their publicly disclosed guidelines; and (iii)
quarterly review of rationales with the Global IPAC of occasions where a portfolio manager may take a position that may not be in accordance
with Invesco’s good governance principles and our internally developed voting guidelines.
E-4
To
the extent material errors are identified in the proxy voting process, such errors are reviewed and reported to, as appropriate, the Global
Head of ESG, Global Proxy Governance and Voting Manager, legal and compliance, the Global IPAC and relevant boards and clients, where
applicable. Invesco’s Global Head of ESG and Proxy Governance and Voting Manager provide proxy voting updates and reporting to
the Global IPAC, various boards and clients. Invesco’s global proxy governance and voting
operations are subject to periodic review by Internal Audit and
Compliance groups.
C.
Disclosures and Recordkeeping
Unless
otherwise required by local or regional requirements, Invesco maintains voting records in either electronic format or hard copy for at
least six years. Invesco makes available its proxy voting records publicly in compliance with regulatory requirements and industry best
practices in the regions below:
•
In
accordance with the US Securities and Exchange Commission regulations, Invesco will file a record of all proxy voting activity for the
prior 12 months ending June 30th for each U.S. registered fund. That filing is made on or before August 31st of each year. Each year,
the proxy voting records are made available on Invesco’s website here.
Moreover, and to the extent applicable, the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
including Department of Labor regulations and guidance thereunder, provide that the named fiduciary generally should be able to review
not only the investment manager's voting procedure with respect to plan-owned stock, but also to review the actions taken in individual
proxy voting situations. In the case of institutional and sub-advised Clients, Clients may contact their client service representative
to request information about how Invesco voted proxies on their behalf. Absent specific contractual guidelines, such requests may be made
on a semi-annual basis.
•
In
the UK and Europe, Invesco publicly discloses our proxy votes monthly in compliance with the UK Stewardship Code and for the European
Shareholder Rights Directive annually here.
•
In
Canada, Invesco publicly discloses our annual proxy votes each year here
by August 31st, covering the 12-month period ending June 30th in compliance with the National Instrument 81-106 Investment Fund Continuous
Disclosure.
•
In
Japan, Invesco publicly discloses our proxy votes annually in compliance with the Japan Stewardship Code here.
•
In
India, Invesco publicly discloses our proxy votes quarterly here
in compliance with The Securities and Exchange Board of India (“SEBI”) Circular on stewardship code for all mutual funds
and all categories of Alternative Investment Funds in relation to their investment in listed equities. SEBI has implemented principles
on voting for Mutual Funds through circulars dated March 15, 2010 and March 24, 2014, which prescribed detailed mandatory requirements
for Mutual Funds in India to disclose their voting policies and actual voting by Mutual Funds on different resolutions of investee companies.
•
In
Hong Kong, Invesco Hong Kong Limited will provide proxy voting records upon request in compliance with the Securities and Futures Commission
(“SFC”) Principles of Responsible Ownership.
•
In
Taiwan, Invesco publicly discloses our proxy voting policy and proxy votes annually in compliance with Taiwan’s Stewardship Principles
for Institutional Investors here.
•
In
Australia, Invesco publicly discloses a summary of its proxy voting record annually here.
•
In
Singapore, Invesco Asset Management Singapore Ltd. will provide proxy voting records upon request in compliance with the Singapore Stewardship
Principles for Responsible Investors.
D.
Global Invesco Proxy Advisory Committee
Guided
by its philosophy that investment teams should manage proxy voting, Invesco has created the Global IPAC. The Global IPAC is an investments-driven
committee comprised of representatives from
E-5
various
investment management teams globally, Invesco’s Global Head of ESG and chaired by its Global Proxy Governance and Voting Manager.
The Global IPAC provides a forum for investment teams to monitor, understand and discuss key proxy issues and voting trends within the
Invesco complex, to assist Invesco in meeting regulatory obligations, to review votes not aligned with our good governance principles
and to consider conflicts of interest in the proxy voting process, all in accordance with this Policy.
In
fulfilling its responsibilities, the Global IPAC meets as necessary, but no less than semi-annually, and has the following responsibilities
and functions: (i) acts as a key liaison between the Global ESG team and local proxy voting practices to ensure compliance with this Policy;
(ii) provides insight on market trends as it relates to stewardship practices; (iii) monitors proxy votes that present potential conflicts
of interest; (iv) the Conflict of Interest sub-committee will make voting decisions on submissions made by portfolio managers on conflict
of interest issues to override the Policy; and (v) reviews and provides input, at least annually, on this Policy and related internal
procedures and recommends any changes to the Policy based on, but not limited to, Invesco’s experience, evolving industry practices,
or developments in applicable laws or regulations.
In
addition to the Global IPAC, for some clients, third parties (e.g., U.S. fund boards) provide oversight of the proxy voting process.
E.
Market and Operational Limitations
In
the great majority of instances, Invesco will vote proxies. However, in certain circumstances, Invesco may refrain from voting where the
economic or other opportunity costs of voting exceeds any benefit to clients. Moreover, ERISA fiduciaries, in voting proxies or exercising
other shareholder rights, must not subordinate the economic interests of plan participants and beneficiaries to unrelated objectives.
These matters are left to the discretion of the relevant portfolio manager. Such circumstances could include, for example:
•
In
some countries the exercise of voting rights imposes temporary transfer restrictions on the related securities (“share blocking”).
Invesco generally refrains from voting proxies in share blocking countries unless Invesco determines that the benefit to the client(s)
of voting a specific proxy outweighs the client’s temporary inability to sell the security.
•
Some
companies require a representative to attend meetings in person to vote a proxy, additional documentation or the disclosure of beneficial
owner details to vote. Invesco may determine that the costs of sending a representative, signing a power-of-attorney or submitting additional
disclosures outweigh the benefit of voting a particular proxy.
•
Invesco
may not receive proxy materials from the relevant fund or client custodian with sufficient time and information to make an informed independent
voting decision.
•
Invesco
held shares on the record date but has sold them prior to the meeting date.
In
some non-U.S. jurisdictions, although Invesco uses reasonable efforts to vote a proxy, proxies may not be accepted or may be rejected
due to changes in the agenda for a shareholder meeting for which Invesco does not have sufficient notice, due to a proxy voting service
not being offered by the custodian in the local market or due to operational issues experienced by third parties involved in the process
or by the issuer or sub-custodian. In addition, despite the best efforts of Invesco and its proxy voting agent, there may be instances
where our votes may not be received or properly tabulated by an issuer or the issuer’s agent.
F.
Securities Lending
Invesco’s
funds may participate in a securities lending program. In circumstances where shares are on loan, the voting rights of those shares are
transferred to the borrower. If the security in question is on loan as part of a securities lending program, Invesco may determine that
the benefit to the client of voting a particular proxy outweighs the benefits of securities lending. In those instances, Invesco may
E-6
determine
to recall securities that are on loan prior to the meeting record date, so that we will be entitled to vote those shares. There may be
instances where Invesco may be unable to recall shares or may choose not to recall shares. The relevant portfolio manager will make these
determinations.
G.
Conflicts of Interest
There
may be occasions where voting proxies may present a perceived or actual conflict of interest between Invesco, as investment manager, and
one or more of Invesco’s clients or vendors.
Firm-Level
Conflicts of interest
A
conflict of interest may exist if Invesco has a material business relationship with either the company soliciting a proxy or a third party
that has a material interest in the outcome of a proxy vote or that is actively lobbying for a particular outcome of a proxy vote. Such
relationships may include, among others, a client relationship, serving as a vendor whose products / services are material or significant
to Invesco, serving as a distributor of Invesco’s products, a significant research provider or broker to Invesco.
Invesco
identifies potential conflicts of interest based on a variety of factors, including but not limited to the materiality of the relationship
between the issuer or its affiliates to Invesco.
Material
firm-level conflicts of interests are identified by individuals and groups within Invesco globally based on criteria established by the
global ESG team. These criteria are monitored and updated periodically by the global ESG team so an updated view is available when conducting
conflicts checks. Operating procedures and associated governance are designed to seek to ensure conflicts of interest are appropriately
considered ahead of voting proxies. The Global IPAC Conflict of Interest Sub-committee maintains oversight of the process. Companies identified
as conflicted will be voted in line with the principles below as implemented by Invesco’s internally developed voting guidelines.
To the extent a portfolio manager disagrees with the Policy, our processes and procedures seek to ensure justification and rationales
are fully documented and presented to the Global IPAC Conflict of Interest Sub-committee for approval by a majority vote.
As
an additional safeguard, persons from Invesco’s marketing, distribution and other customer-facing functions may not serve on the
Global IPAC. For the avoidance of doubt, Invesco may not consider Invesco Ltd.’s pecuniary interest when voting proxies on behalf
of clients. To avoid any appearance of a conflict of interest, Invesco will not vote proxies issued by Invesco Ltd. that may be held in
client accounts.
Personal
Conflicts of Interest
A
conflict also may exist where an Invesco employee has a known personal or business relationship with other proponents of proxy proposals,
participants in proxy contests, corporate directors, or candidates for directorships. Under Invesco’s Global Code of Conduct, Invesco
entities and individuals must act in the best interests of clients and must avoid any situation that gives rise to an actual or perceived
conflict of interest.
All
Invesco personnel with proxy voting responsibilities are required to report any known personal or business conflicts of interest regarding
proxy issues with which they are involved. In such instances, the individual(s) with the conflict will be excluded from the decision-making
process relating to such issues.
Voting
Fund of Funds
There
may be conflicts that arise from Invesco voting on matters when shares of Invesco-sponsored funds are held by other Invesco funds or entities.
The scenarios below set out how Invesco votes in these instances.
•
Proportional
voting will be implemented in the following scenarios:
•
When
required by law or regulation, shares of an Invesco fund held by other Invesco funds will be voted in the same proportion as the votes
of external shareholders of the
E-7
underlying
fund. If such proportional voting is not operationally possible, Invesco will not vote the shares.
•
When
required by law or regulation, shares of an unaffiliated registered fund held by one or more Invesco funds will be voted in the same proportion
as the votes of external shareholders of the underlying fund.
If such proportional voting is not operationally possible,
Invesco will not vote the shares.
•
For
US fund of funds where proportional voting is not required by law or regulation, shares of Invesco funds will be voted in the same proportion
as the votes of external shareholders of the underlying fund. If such proportional voting is not operationally possible, Invesco will
vote in line with our internally developed voting guidelines (as defined below).
•
Non-US
fund of funds will not be voted proportionally, Invesco will vote in line with local policies as per Exhibit A. If no local policies exist,
Invesco will vote non-US funds of funds in line with the firm level conflicts of interest process described above.
•
For
US fund of funds where proportional voting is not required by law, Invesco will still apply proportional voting. In the event this is
not operationally possible, Invesco will vote in line with our internally developed voting guidelines (as defined below).
•
For
non-US fund of funds Invesco will vote in line with our above-mentioned firm-level conflicts of interest process unless local policies
are in place as per Exhibit A.
H.
Use of Third-Party Proxy Advisory Services
Invesco
may supplement its internal research with information from independent third-parties, such as proxy advisory firms, to assist us in assessing
the corporate governance of investee companies. Globally, Invesco leverages research from Institutional Shareholder Services Inc. (“ISS”)
and Glass Lewis (“GL”). Invesco generally retains full and independent discretion with respect to proxy voting decisions.
ISS
and GL both provide research reports, including vote recommendations, to Invesco and its portfolio managers and analysts. Invesco retains
ISS to provide written analysis and recommendations based on Invesco’s internally developed custom voting guidelines. Updates to
previously issued proxy research reports may be provided to incorporate newly available information or additional disclosure provided
by the issuer regarding a matter to be voted on, or to correct factual errors that may result in the issuance of revised proxy vote recommendations.
Invesco’s global ESG team may periodically monitor for these research alerts issued by ISS and GL that are shared with our investment
teams. Invesco will generally endeavor to consider such information where such information is considered material provided it is delivered
in a timely manner ahead of the vote deadline.
Invesco
also retains ISS to assist in the implementation of certain proxy voting-related functions, including, but not limited to, operational
and reporting services. These administrative services include receipt of proxy ballots, vote execution through PROXYintel and vote disclosure
in Canada, the UK and Europe to meet regulatory reporting obligations.
As
part of its fiduciary obligation to clients, Invesco performs extensive initial and ongoing due diligence on the proxy advisory firms
it engages globally. This includes reviews of information regarding the capabilities of their research staff, methodologies for formulating
voting recommendations, the adequacy and quality of personnel and technology, as applicable, and internal controls, policies and procedures,
including those relating to possible conflicts of interest.
The
proxy advisory firms Invesco engages globally complete an annual due diligence questionnaire submitted by Invesco, and Invesco conducts
annual due diligence meetings in part to discuss their responses to the questionnaire. In addition, Invesco monitors and communicates
with these firms and monitors their compliance with Invesco’s performance and policy standards. ISS and GL disclose
E-8
conflicts
to Invesco through a review of their policies, procedures and practices regarding potential conflicts of interests (including inherent
internal conflicts) as well as disclosure of the work ISS and GL perform for corporate issuers and the payments they receive from such
issuers. As part of our annual policy development process, Invesco engages with external proxy and governance experts to understand market
trends and developments and to weigh in on the development of these policies at these firms, where appropriate. These meetings provide
Invesco with an opportunity to assess the firms’ capabilities, conflicts of interest and service levels, as well as provide investment
professionals with direct insight into the advisory firms’ stances on key governance and proxy topics and their policy framework/methodologies.
Invesco
completes a review of the System and Organizational Controls (“SOC”) Reports for each proxy advisory firm to ensure the
related controls operated effectively to provide reasonable assurance.
In
addition to ISS and GL, Invesco may use regional third-party research providers to access regionally specific research.
I.
Review of Policy
The
Global IPAC and Invesco’s Global ESG team, compliance and legal teams annually communicate and review this Policy and our internally
developed custom voting guidelines to seek to ensure that they remain consistent with clients’ best interests, regulatory requirements,
investment team considerations, governance trends and industry best practices. At least annually, this Policy and our internally developed
voting guidelines are reviewed by various groups within Invesco to ensure that they remain consistent with Invesco’s views on best
practice in corporate governance and long-term investment stewardship.
III.
OUR
GOOD GOVERNANCE PRINCIPLES
Invesco’s
good governance principles outline our views on best practice in corporate governance and long-term investment stewardship. These principles
have been developed by our global investment teams in collaboration with the Global ESG team. The broad philosophy and guiding principles
in this section inform our approach to long-term investment stewardship and proxy voting. The principles and positions reflected in this
Policy are designed to guide Invesco’s investment professionals in voting proxies; they are not intended to be exhaustive or prescriptive.
Our
portfolio managers and analysts retain full discretion on vote execution in the context of our good governance principles and internally
developed custom voting guidelines, except where otherwise specified in this Policy. The final voting decisions may consider the unique
circumstances affecting companies, regional best practices and any dialogue we have had with company management. As a result, different
Portfolio Management Teams may vote differently on particular votes for the same company. To the extent a portfolio manager chooses to
vote a proxy in a way that is not aligned with the principles below, such manager’s rationales are fully documented.
The
following guiding principles apply to operating companies. We apply a separate approach to open-end and closed-end investment companies
and unit investment trusts. Where appropriate, these guidelines are supplemented by additional internal guidance that considers regional
variations in best practices, disclosure and region-specific voting items. Invesco may vote on proposals not specifically addressed by
these principles based on an evaluation of a proposal’s likelihood to enhance long-term shareholder value.
Our
good governance principles are divided into six key themes that Invesco endorses:
A.
Transparency
We
expect companies to provide accurate, timely and complete information that enables investors to make informed investment decisions and
effectively carry out their stewardship activities. Invesco supports the highest standards in corporate transparency and believes that
these disclosures should be made available ahead of the voting deadlines for the Annual General Meeting or Extraordinary General Meeting
to allow for timely decision-making.
E-9
Financial
reporting: Company accounts and reporting must accurately reflect
the underlying economic position of a company. Arrangements that may constitute an actual or perceived conflict with this objective should
be avoided.
•
We
will generally support proposals to accept the annual financial statements, statutory accounts and similar proposals unless these reports
are not presented in a timely manner or significant issues are identified regarding the integrity of these disclosures.
•
We
will generally vote against the incumbent audit committee chair, or nearest equivalent, where the non-audit fees paid to the independent
auditor exceed audit fees for two consecutive years or other problematic accounting practices are identified such as fraud, misapplication
of audit standards or persistent material weaknesses/deficiencies in internal controls over financial reporting.
•
We
will generally not support the ratification of the independent auditor and/or ratification of their fees payable if non-audit fees exceed
audit and audit related fees or there are significant auditing controversies or questions regarding the independence of the external auditor.
We will consider an auditor’s length of service as a company’s independent auditor in applying this policy.
B.
Accountability
Robust
shareholder rights and strong board oversight help ensure that management adhere to the highest standards of ethical conduct, are held
to account for poor performance and responsibly deliver value creation for stakeholders over the long-term. We therefore encourage companies
to adopt governance features that ensure board and management accountability. In particular, we consider the following as key mechanisms
for enhancing accountability to investors:
One
share one vote: Voting rights are an important tool for investors
to hold boards and management teams accountable. Unequal voting rights may limit the ability of investors to exercise their stewardship
obligations.
•
We
generally do not support proposals that establish or perpetuate dual classes of voting shares, double voting rights or other means of
differentiated voting or disproportionate board nomination rights.
•
We
generally support proposals to decommission differentiated voting rights.
•
Where
unequal voting rights are established, we expect these to be accompanied by reasonable safeguards to protect minority shareholders’
interests.
Anti-takeover
devices: Mechanisms designed to prevent or unduly delay takeover
attempts may unduly limit the accountability of boards and management teams to shareholders.
•
We
generally will not support proposals to adopt antitakeover devices such as poison pills. Exceptions may be warranted at entities without
significant operations and to preserve the value of net operating losses carried forward or where the applicability of the pill is limited
in scope and duration.
•
In
addition, we will generally not support capital authorizations or amendments to corporate articles or bylaws at operating companies that
may be utilized for antitakeover purposes, for example, the authorization of classes of shares of preferred stock with unspecified voting,
dividend, conversion or other rights (“blank check” authorizations).
Shareholder
rights: We support the rights of shareholders to hold boards and
management teams accountable for company performance. We generally support best practice aligned proposals to enhance shareholder rights,
including but not limited to the following:
•
Adoption
of proxy access rights
E-10
•
Rights
to call special meetings
•
Rights
to act by written consent
•
Reduce
supermajority vote requirements
•
Remove
antitakeover provisions
•
Requirement
that directors are elected by a majority vote
In
addition, we oppose practices that limit shareholders’ ability to express their views at a general meeting such as bundling unrelated
proposals or several significant article or bylaw amendments into a single voting item. We will generally vote against these proposals
unless we are satisfied that all the underlying components are aligned with our views on best practice.
Director
Indemnification: Invesco recognizes that individuals may be reluctant
to serve as corporate directors if they are personally liable for all related lawsuits and legal costs. As a result, reasonable limitations
on directors’ liability can benefit a company and its shareholders by helping to attract and retain qualified directors while preserving
recourse for shareholders in the event of misconduct by directors. Accordingly, unless there is insufficient information to make a decision
about the nature of the proposal, Invesco will generally support proposals to limit directors’ liability and provide indemnification
and/or exculpation, provided that the arrangements are reasonably limited in scope to directors acting in good faith and, in relation
to criminal matters, limited in scope to directors having reasonable grounds for believing the conduct was lawful.
Responsiveness:
Boards should respond to investor concerns in a timely fashion, including reasonable requests to engage with company representatives regarding
such concerns, and address matters that receive significant voting dissent at general meetings of shareholders.
•
We
will generally vote against the lead independent director and/or the incumbent chair of the governance committee, or nearest equivalent,
in cases where the board has not adequately responded to items receiving significant voting opposition from shareholders at an annual
or extraordinary general meeting.
•
We
will generally vote against the lead independent director and/or incumbent chair of the governance committee, or nearest equivalent, where
the board has not adequately responded to a shareholder proposal which has received significant support from shareholders.
•
We
will generally vote against the incumbent chair of the compensation committee if there are significant ongoing concerns with a company’s
compensation practices that have not been addressed by the committee or egregious concerns with the company’s compensation practices
for two years consecutively.
•
We
will generally vote against the incumbent compensation committee chair where there are ongoing concerns with a company’s compensation
practices and there is no opportunity to express dissatisfaction by voting against an advisory vote on executive compensation, remuneration
report (or policy) or nearest equivalent.
•
Where
a company has not adequately responded to engagement requests from Invesco or satisfactorily addressed issues of concern, we may oppose
director nominations, including, but not limited to, nominations for the lead independent director and/or committee chairs.
Virtual
shareholder meetings: Companies should hold their annual or special
shareholder meetings in a manner that best serves the needs of its shareholders and the company. Shareholders should have an opportunity
to participate in such meetings. Shareholder meetings provide an important mechanism by which shareholders provide feedback or raise concerns
without undue censorship and hear from the board and management.
•
We
will generally support management proposals seeking to allow for the convening of hybrid
E-11
shareholder
meetings (allowing shareholders the option to attend and participate either in person or through a virtual platform).
•
Management
or shareholder proposals that seek to authorize the company to hold virtual-only meetings (held entirely through virtual platform with
no corresponding in-person physical meeting) will be assessed on a case-by-case basis. Companies have a responsibility to provide strong
justification and establish safeguards to preserve comparable rights and opportunities for shareholders to participate virtually as they
would have during an in-person meeting. Invesco will consider, among other things, a company’s practices, jurisdiction and disclosure,
including the items set forth below:
•
meeting
procedures and requirements are disclosed in advance of a meeting detailing the rationale for eliminating the in-person meeting;
•
clear
and comprehensive description of which shareholders are qualified to participate, how shareholders can join the virtual-only meeting,
how and when shareholders submit and ask questions either in advance of or during the meeting;
•
disclosure
regarding procedures for questions received during the meeting, but not answered due to time or other restrictions; and
•
description
of how shareholder rights will be protected in a virtual-only meeting format including the ability to vote shares during the time the
polls are open.
C.
Board Composition and Effectiveness
Director
election process: Board members should generally
stand for election annually and individually.
•
We
will generally support proposals requesting that directors stand for election annually.
•
We
will generally vote against the incumbent governance committee chair or lead independent director if a company has a classified board
structure that is not being phased out. We may make exceptions to this policy for non-operating companies (e.g., open-end and closed-end
funds) or in regions where market practice is for directors to stand for election on a staggered basis.
•
When
a board is presented for election as a slate (e.g., shareholders are unable to vote against individual nominees and must vote for or against
the entire nominated slate of directors) and this approach is not aligned with local market practice, we will generally vote against the
slate in cases where we otherwise would vote against an individual nominee.
•
Where
market practice is to elect directors as a slate we will generally support the nominated slate unless there are governance concerns with
several of the individuals included on the slate or we have broad concerns with the composition of the board such as a lack independence.
Board
size: We will generally defer to the board with respect to determining
the optimal number of board members given the size of the company and complexity of the business, provided that the proposed board size
is sufficiently large to represent shareholder interests and sufficiently limited to remain effective.
Board
assessment and succession planning: When evaluating board effectiveness,
Invesco considers whether periodic performance reviews and skills assessments are conducted to ensure the board represents the interests
of shareholders. In addition, boards should have a robust succession plan in place for key management and board personnel.
Definition
of independence: Invesco considers local market definitions of
director independence but applies a proprietary standard for assessing director independence considering a director’s status as
a current or former employee of the business, any commercial or consulting relationships with the company, the level of shares beneficially
owned or represented and familial relationships, among others.
E-12
Board
and committee independence: The board of directors, board committees
and regional equivalents should be sufficiently independent from management, substantial shareholders and conflicts of interest. We consider
local market practices in this regard and in general we look for a balance across the board of directors. Above all, we like to see signs
of robust challenge and discussion in the boardroom.
•
We
will generally vote against one or more non-independent directors when a board is less than majority independent, but we will take into
account local market practice with regards to board independence in limited circumstances where this standard is not appropriate.
•
We
will generally vote against non-independent directors serving on the audit committee.
•
We
will generally vote against non-independent directors serving on the compensation committee.
•
We
will generally vote against non-independent directors serving on the nominating committee.
•
In
relation to the board, compensation committee and nominating committee we will consider the appropriateness of significant shareholder
representation in applying this policy. This exception will generally not apply to the audit committee.
Separation
of Chair and CEO roles: We believe that independent board leadership
generally enhances management accountability to investors. Companies deviating from this best practice should provide a strong justification
and establish safeguards to ensure that there is independent oversight of a board’s activities (e.g., by appointing a lead or senior
independent director with clearly defined powers and responsibilities).
•
We
will generally vote against the incumbent nominating committee chair where the board chair is not independent unless a lead independent
or senior director is appointed.
•
We
will generally support shareholder proposals requesting that the board chair be an independent director.
•
We
will generally not vote against a CEO or executive serving as board chair solely on the basis of this issue, however, we may do so in
instances where we have significant concerns regarding a company’s corporate governance, capital allocation decisions and/or compensation
practices.
Attendance
and over boarding: Director attendance at board and committee meetings
is a fundamental part of their responsibilities and provides efficient oversight for the company and its investors. In addition, directors
should not have excessive external board or managerial commitments that may interfere with their ability to execute the duties of a director.
•
We
will generally vote against directors who attend less than 75% of board and committee meetings held in the previous year unless an acceptable
extenuating circumstance is disclosed, such as health matters or family emergencies.
•
We
will generally vote against directors who have more than four total mandates at public operating companies. We apply a lower threshold
for directors with significant commitments such as executive positions and chairmanships.
Diversity:
We encourage companies to continue to evolve diversity and inclusion practices. Boards should be comprised of directors with a variety
of relevant skills and industry expertise together with a diverse profile of individuals of different genders, ethnicities, race, skills,
tenures and backgrounds to provide robust challenge and debate. We consider diversity at the board level, within the executive management
team and in the succession pipeline.
•
We
will generally vote against the incumbent nominating committee chair of a board where women constitute less than two board members or
25% of the board, whichever is lower, for two or more consecutive years, unless incremental improvements are being made to diversity practices.
E-13
•
In
addition, we will consider a company’s performance on broader types of diversity which may include diversity of skills, non-executive
director tenure, ethnicity, race or other factors where appropriate and reasonably determinable. We will generally vote against the incumbent
nominating committee chair if there are multiple concerns on diversity issues.
•
We
generally believe that an individual board’s nominating committee is best positioned to determine whether director term limits
would be an appropriate measure to help achieve these goals and, if so, the nature of such limits. Invesco generally opposes proposals
to limit the tenure of outside directors through mandatory retirement ages.
D.
Long-Term Stewardship of Capital
Capital
allocation:
Invesco expects companies to responsibly raise and deploy capital towards the long-term, sustainable success of the business. In addition,
we expect capital allocation authorizations and decisions to be made with due regard to shareholder dilution, rights of shareholders to
ratify significant corporate actions and pre-emptive rights, where applicable.
Share
issuance and repurchase authorizations: We generally support authorizations
to issue shares up to 20% of a company’s issued share capital for general corporate purposes. Shares should not be issued at a
substantial discount to the market price or be repurchased at a substantial premium to the market price.
Stock
splits: We generally support management proposals to implement
a forward or reverse stock split, provided that a reverse stock split is not being used to take a company private. In addition, we will
generally support requests to increase a company’s common stock authorization if requested to facilitate a stock split.
Increases
in authorized share capital: We will generally support proposals
to increase a company’s number of authorized common and/or preferred shares, provided we have not identified concerns regarding
a company’s historical share issuance activity or the potential to use these authorizations for antitakeover purposes. We will
consider the amount of the request in relation to the company’s current authorized share capital, any proposed corporate transactions
contingent on approval of these requests and the cumulative impact on a company’s authorized share capital, for example, if a reverse
stock split is concurrently submitted for shareholder consideration.
Mergers,
acquisitions, proxy contests, disposals and other corporate transactions:
Invesco’s investment teams will review proposed corporate transactions including mergers, acquisitions, reorganizations, proxy
contests, private placements, dissolutions and divestitures based on a proposal’s individual investment merits. In addition, we
broadly approach voting on other corporate transactions as follows:
•
We
will generally support proposals to approve different types of restructurings that provide the necessary financing to save the company
from involuntary bankruptcy.
•
We
will generally support proposals to enact corporate name changes and other proposals related to corporate transactions that we believe
are in shareholders’ best interests.
•
We
will generally support reincorporation proposals, provided that management have provided a compelling rationale for the change in legal
jurisdiction and provided further that the proposal will not significantly adversely impact shareholders’ rights.
•
With
respect to contested director elections, we consider the following factors, among others, when evaluating the merits of each list of nominees:
the long-term performance of the company relative to its industry, management’s track record, any relevant background information
related to the contest, the qualifications of the respective lists of director nominees, the strategic merits of the approaches proposed
by both sides, including the likelihood that the proposed goals can be met, and positions of stock ownership in the company.
E.
Environmental, Social and Governance Risk Oversight
E-14
Director
responsibility for risk oversight: The board of directors are ultimately
responsible for overseeing management and ensuring that proper governance, oversight and control mechanisms are in place at the companies
they oversee. Invesco may take voting action against director nominees in response to material governance or risk oversight failures that
adversely affect shareholder value.
Invesco
considers the adequacy of a company's response to material oversight failures when determining whether any voting action is warranted.
In addition, Invesco will consider the responsibilities delegated to board subcommittees when determining if it is appropriate to hold
certain director nominees accountable for these material failures.
Material
governance or risk oversight failures at a company may include, without limitation:
i.
significant
bribery, corruption or ethics violations;
ii.
events
causing significant climate-related risks;
iii.
significant
health and safety incidents; or
iv.
failure
to ensure the protection of human rights.
Reporting
of financially material ESG information: Companies should report
on their environmental, social and governance opportunities and risks where material to their business operations.
•
Where
Invesco finds significant gaps in management and disclosure of environmental, social and governance risk policies, we will generally vote
against the annual reporting and accounts or an equivalent resolution.
•
Climate
risk management: We encourage companies to report on material climate-related risks and opportunities and how these are considered within
the company’s strategy, financial planning, governance structures and risk management frameworks in accordance with the recommendations
of the Task Force on Climate-related Financial Disclosures (“TCFD”), or other relevant reporting frameworks. For companies
in industries that materially contribute to climate change, we encourage comprehensive disclosure of greenhouse gas emissions and Paris-aligned
emissions reduction targets, where appropriate. Invesco may take voting action at companies that fail to adequately address climate-related
risks, including opposing director nominations in cases where we view the lack of effective climate transition risk management as potentially
detrimental to long-term shareholder value.
Shareholder
proposals addressing environmental and social risks: Invesco may
support shareholder resolutions requesting that specific actions be taken to address environmental and social (“E&S”)
issues or mitigate exposure to material E&S risks, including reputational risk, related to these issues. When considering such proposals,
we will consider a company's track record on E&S issues, the efficacy of the proposal's request, whether the requested action is unduly
burdensome, and whether we consider the adoption of such a proposal would promote long-term shareholder value. We will also consider company
responsiveness to the proposal and any engagement on the issue when casting votes.
•
We
generally do not support resolutions where insufficient information has been provided in advance of the vote or a lack of disclosure inhibits
our ability to make fully informed voting decisions.
•
We
will generally support shareholder resolutions requiring additional disclosure on material environmental, social and governance risks
facing their businesses, provided that such requests are not unduly burdensome or duplicative with a company’s existing reporting.
These may include, but are not limited to, reporting on the following: gender and racial diversity issues, political contributions and
lobbying disclosure, information on data security, privacy, and internet practices, human capital and labor issues and the use of natural
capital, and reporting on climate change-related risks.
E-15
Ratification
of board and/or management acts: We will generally support proposals
to ratify the actions of the board of directors, supervisory board and/or executive decision-making bodies, provided there are no material
oversight failures as described above. When such oversight concerns are identified, we will consider a company’s response to any
issues raised and may vote against ratification proposals instead of, or in addition to, director nominees.
F.
Executive Compensation and Alignment
Invesco
supports compensation polices and equity incentive plans that promote alignment between management incentives and shareholders’
long-term interests. We pay close attention to local market practice and may apply stricter or modified criteria where appropriate.
Advisory
votes on executive compensation, remuneration policy and remuneration reports:
We will generally not support compensation-related proposals where more than one of the following is present:
i.
there
is an unmitigated misalignment between executive pay and company performance for at least two consecutive years;
ii.
there
are problematic compensation practices which may include among others incentivizing excessive risk taking or circumventing alignment between
management and shareholders’ interests via repricing of underwater options;
iii.
vesting
periods for long-term incentive awards are less than three years;
iv.
the
company “front loads” equity awards;
v.
there
are inadequate risk mitigating features in the program such as clawback provisions;
vi.
excessive,
discretionary one-time equity grants are awarded to executives;
vii.
less
than half of variable pay is linked to performance targets, except where prohibited by law.
Invesco
will consider company reporting on pay ratios as part of our evaluation of compensation proposals, where relevant.
Equity
plans: Invesco generally supports equity compensation plans that
promote the proper alignment of incentives with shareholders’ long-term interests, and generally votes against plans that are overly
dilutive to existing shareholders, plans that contain objectionable structural features which may include provisions to reprice options
without shareholder approval, plans that include evergreen provisions or plans that provide for automatic accelerated vesting upon a change
in control.
Employee
stock purchase plans: We generally support employee stock purchase
plans that are reasonably designed to provide proper incentives to a broad base of employees, provided that the price at which employees
may acquire stock represents a reasonable discount from the market price.
Severance
Arrangements: Invesco considers proposed severance arrangements
(sometimes known as “golden parachute” arrangements) on a case-by-case basis due to the wide variety among their terms.
Invesco acknowledges that in some cases such arrangements, if reasonable, may be in shareholders’ best interests as a method of
attracting and retaining high-quality executive talent. We generally vote in favor of proposals requiring shareholder ratification of
senior executives’ severance agreements where the proposed terms and disclosure align with good market practice.
E-16
Exhibit
A
Harbourview
Asset Management Corporation
Invesco
Advisers, Inc.
Invesco
Asset Management (India) Pvt. Ltd*1
Invesco
Asset Management (Japan) Limited*1
Invesco
Asset Management (Schweiz) AG
Invesco
Asset Management Deutschland GmbH
Invesco
Asset Management Limited1
Invesco
Asset Management Singapore Ltd
Invesco
Australia Ltd
Invesco
European RR L.P
Invesco
Canada Ltd.1
Invesco
Capital Management LLC
Invesco
Capital Markets, Inc.*1
Invesco
Hong Kong Limited
Invesco
Investment Advisers LLC
Invesco
Investment Management (Shanghai) Limited
Invesco
Investment Management Limited
Invesco
Loan Manager, LLC
Invesco
Managed Accounts, LLC
Invesco
Management S.A
Invesco
Overseas Investment Fund Management (Shanghai) Limited
Invesco
Pensions Limited
Invesco
Private Capital, Inc.
Invesco
Real Estate Management S.a.r.l1
Invesco
RR Fund L.P.
Invesco
Senior Secured Management, Inc.
Invesco
Taiwan Ltd*1
Invesco
Trust Company
Oppenheimer
Funds, Inc.
WL
Ross & Co. LLC
*
Invesco entities with specific proxy voting guidelines
1 Invesco entities with specific conflicts of interest policies
1 Invesco entities with specific conflicts of interest policies
E-17
Invesco
Japan Proxy Voting Guideline
Invesco
Japan (hereinafter “we” or “our) votes proxies to maximize the interests of our clients (investors) and beneficiaries
in the long term, acknowledging the importance of corporate governance based on fiduciary duties to our clients (investors) and beneficiaries.
We do not vote proxies for the interests of ourselves and any third party other than clients (investors) and beneficiaries. The interests
of clients (investors) and beneficiaries are to expand the corporate value or the shareholders’ economic interests or prevent damage
thereto. Proxy voting is an integral part of our stewardship activities, and we make voting decisions considering whether the proposal
would contribute to corporate value expansion and sustainable growth.
To
vote proxies adequately, we have established the Responsible Investment Committee and developed the Proxy Voting Guideline to govern the
decision-making process of proxy voting. While we may seek advice from an external service provider based on our own guidelines, our investment
professionals make voting decisions in principle, based on the proxy voting guideline, taking into account whether they contribute to
increasing the subject company’s shareholder value.
Responsible
proxy voting and constructive dialogue with investee companies are important components of stewardship activities. While the Proxy Voting
Guideline are principles for our voting decisions, depending on the proposals, we may make an exception if we conclude that such a decision
is in the best interests of clients (investors) and beneficiaries after having constructive dialogue with the investee companies. In such
a case, approval of the Responsible Investment Committee shall be obtained.
The
Responsible Investment Committee consists of members including Chief Investment Officer, as the chair, Head of Compliance, Head of ESG,
investment professionals nominated by the chair and the other members, including persons in charge at the Client Reporting department.
We
have established the Conflict of Interest Management Policy. In the situation that may give rise to a conflict of interest, we aim to
control it in the best interests of clients (investors) and beneficiaries. The Compliance department is responsible for governing company-wide
control of a conflict of interest. The Compliance department is independent of Investment and Sales departments and shall not receive
any command or order for the matters compliant with the laws and regulations, including a conflict of interest, from them.
Proxy
Voting Guidelines
1.
Appropriations of Retained
Earnings and Dividends
We
decide how to vote on proposals seeking approval for appropriations of retained earnings and dividends, taking into account the subject
company’s financial conditions and business performance, shareholders’ economic interests and so on.
•
Taking
into account the company’s capital adequacy, business strategies, and so on if the total payout ratio, including dividends and
share repurchases, is significantly low, we consider voting against the proposals unless reasonable explanations are given by the company.
•
With
respect to the company where the Board of Directors determines appropriations of retained earnings, taking into account the subject company’s
capital adequacy, business strategies, and so on if the total payout ratio, including dividends and share repurchases, is significantly
low, we consider voting against the reappointment of board directors unless reasonable explanations are given by the company.
•
Taking
into account the subject company’s capital adequacy, business strategies, and so on if the total payout ratio, including dividends
and share repurchases, is significantly low, we consider voting for shareholder proposals increasing shareholder returns.
E-19
2.
Appointment of Board
Directors
We
decide how to vote on proposals concerning the appointment of board directors, taking into account their independence, competence, anti-social
activity records (if any), and so on. Furthermore, we decide how to vote on the reappointment of board directors, taking into account
their corporate governance practices, accountability during their tenures, the company’s business performance and anti-social records
(if any), and so on in addition to the above factors.
Board
directors should make best efforts to continuously gain knowledge and skills to fulfill the critical role and responsibilities in the
company’s governance. A company should also provide sufficient training opportunities.
Independent
outside directors are expected to play a significant role, such as safeguarding minority shareholders’ interests through action
based on their insights to increase the company’s corporate value. It is desirable to enhance the board’s governance function
with independent outside directors accounting for the board majority. However, given the challenge to secure competent candidates, we
also recognize that it is difficult for all the companies, irrespective of their size, to deploy the independent outside directors’
majority on the Board.
Sufficient
disclosure is a prerequisite for reflecting the assessment of independence and suitability of director candidates and board composition
in voting decisions. Currently, there are cases where sufficient information cannot be obtained due to insufficient disclosure on a board
chair, each committee’s function and committee chairs in Notice of Annual General Meeting (AGM) and a corporate governance report,
as well as untimeliness of these issuances. We generally make decisions based on Notice of AGM, a corporate governance report and an annual
securities report disclosed by the time of voting. However, this shall not apply if we obtain such information from direct engagement
with the company or find relevant disclosure elsewhere.
(1)
Independence
We
generally vote for the appointment of outside directors. However, we generally vote against if a candidate is not regarded as independent
of the subject company. It is desirable that the company discloses information, such as numerical data, which supports our decision on
board independence.
•
We
view the following outside director candidates are not independent enough.
•
Candidates
who have been working for the following companies for the last ten years or are those people’s relatives.
•
The
subject company
•
Its
subsidiary
•
Its
parent company
•
Candidates
who have been working for the following companies for the last five years or are those people’s relatives.
•
Shareholders
who own more than 10% of the subject company
•
Principal
loan lenders
•
Principal
securities brokers
•
Major
business partners
•
Auditors
•
Audit
companies, consulting companies or any related service providers which have any consulting contracts with the subject company
•
Any
other counterparts which have any interests in the subject company
E-20
In
cases other than above, we separately scrutinize the independence of candidates who are regarded as not independent enough.
•
We
take extra care when we assess the independence of candidates from a company which is regarded as a policy shareholder under cross shareholding,
mutually sends outside directors to each other, and so on, as such cases potentially raise doubts about their independence. The company
should give reasonable explanations. It is also desirable that the company contrives the timing and method of disclosure to allow investors
to understand those relationships enough.
•
We
judge board independence according to the stock exchange’s independence criteria with emphasizing independence ensured practically.
We consider each company’s business environment and make the best effort to engage with the subject company to determine the independence
of the candidates.
•
We
regard an outside director with a significantly long tenure as non-independent and consider voting against the reappointment of such an
outside director. We generally consider voting against the reappointment of outside directors whose tenures are longer than ten years.
•
If
the subject company is a company with Audit Committee, we judge the independence of outside director candidates who become audit committee
board members using the same independence criteria for the appointment of statutory auditors in principle.
•
We
generally consider voting against the appointment of top executives and a nominating committee chair at a company with three Committees
if independent outside directors of the subject company account for less than 1/3 of the Board after the AGM. However, this shall not
apply if we confirm sufficient planning or special circumstances on increasing the number of independent outside directors in engagements.
•
In
case the subject company has a parent company, we generally consider voting against the appointment of top executives and a nominating
committee chair at a company with three Committees if independent outside directors account for less than half of the Board after the
AGM. However, this shall not apply if we confirm sufficient planning or special circumstances on increasing the number of independent
outside directors in engagements.
(2)
Attendance
rate and concurrent duties
•
All
members are expected to attend board and respective committee meetings in principle. A Company is generally obligated to facilitate all
members to attend these meetings. We generally vote against the reappointment of board directors who attended less than 75% of board or
respective committee meetings.
•
We
take into account not only the number of attendance but nomination reasons and candidates’ real contributions if disclosed.
•
We
take extra care when we assess the capability of board directors who have many concurrent duties as an outside director or outside statutory
auditor of listed companies, as such cases potentially arise doubts about their capacity given the importance of outside directors’
role and responsibilities. Accordingly, we consider voting against the appointment of board directors who perform five or more duties
as a director or statutory auditor of a listed company or equivalent company.
•
If
a company nominates a board director with many concurrent duties, it should provide reasonable explanations. It is also desirable that
the company contrives disclosure timing and methods to allow investors to understand the situation enough.
(3)
Company’s
business performance
•
We
consider voting against the reappointment of board directors if the subject company made a loss for the three consecutive years during
their tenures.
E-21
•
We
consider voting against the reappointment of board directors if we judge that the subject company’s business performance significantly
lags the peers in the same industry during their tenures.
•
We
consider voting against top executives if, concerning capital efficiency including return on capital, business strategies achieving corporate
value expansion and sustainable growth are not demonstrated, and constructive dialogues are not conducted.
(4)
Company’s
anti-social activities
•
If
we judge that a corporate scandal damages or is likely to damage shareholder value with having a significant effect on society during
a board tenure, we conduct adequate dialogues with the subject company on the background and subsequent resolutions of the scandal. Based
on the dialogues, we decide how to vote on the reappointment of top executives, board directors in charge of those cases and audit committee
board members at a company with Audit Committee or three Committees, considering the impact on shareholder value.
•
With
respect to domestic corporate scandals, at the time a company receives administrative dispositions to cartel, bid-rigging, and so on from
authorities, such as the Fair Trade Commission, we consider voting against the reappointment of top executives, directors in charge and
audit committee board members at a company with Audit Committee or three Committees. However, in case final dispositions are subsequently
determined based on appeal or complaints resolutions, we do not vote against the reappointment again at that time. We vote on a case-by-case
basis concerning compensation orders in a civil case, dispositions from the Consumer Affairs Agency or administrative dispositions from
overseas authorities.
•
With
respect to administrative dispositions to an unlisted subsidiary or affiliate, we consider voting against the reappointment of top executives,
directors in charge and audit committee board members at a company with Audit Committee or three Committees of the holding or parent company.
If a subsidiary or affiliate is listed, we consider voting against the reappointment of top executives, directors in charge and audit
committee board members at a company with Audit Committee or three Committees of both the subsidiary or affiliate and the holding or parent
company. However, we may vote on a case-by-case basis, depending on the importance of the disposition to the subsidiary or affiliate,
its impact on the holding or parent company’s financial performance, and so on.
•
With
respect to employees’ scandals, if the scandal damages or is likely to damage shareholder value, and we judge that the subject
company owes management responsibility, we consider voting against the reappointment of top executives, directors in charge and audit
committee board members at a company with Audit Committee or three Committees.
•
We
consider voting against the reappointment of board directors if the subject company engages in window dressing or inadequate accounting
practices during their tenures.
(5)
Activities
against shareholder interest
•
If
a company raises capital through an excessively dilutive third-party allotment without a shareholders’ meeting’s approval,
we consider voting against the reappointment of board directors, particularly top executives.
•
If
a company raises capital through a large-scale public offering without reasonable explanations, we consider voting against the reappointment
of board directors, particularly top executives.
•
If
a company does not execute a shareholder proposal regarded as favorable for minority shareholders receiving the majority support from
shareholders or does not make a similar company proposal at an AGM in the following year, we consider voting against the appointment of
top executives.
(6)
Others
•
If
a company insufficiently discloses board director candidates’ information, we generally vote against such candidates.
E-22
3.
Composition of Board
of Directors
While
each company’s board structure would differ depending on its size and so on, we believe that a company with three Committees (Nomination,
Audit and Remuneration) is desirable to achieve better governance as a listed company. For a company with Board of Statutory Auditors
(Kansayaku) or Audit Committee, it is also desirable to voluntarily deploy a Nomination Committee, a Remuneration Committee and other
necessary committees. Besides, it is desirable that Board Chair is an independent outside director. We believe that a highly transparent
board composition ensures management accountability and contributes to sustained enterprise value expansion. Finally, the disclosure of
the third-party assessment on the Board of Directors is desirable.
To
strengthen the Board of Directors’ monitoring function and increase its transparency and effectiveness, we believe it is important
to ensure gender, nationality, career, and age diversity in principle. It is desirable that each company adopts a skills matrix that defines
the diversity and expertise required to fulfill the Board’s responsibilities reflecting its situation and selects director candidates
accordingly.
We
are concerned about retired directors assuming consulting, advisory or other similar positions which could negatively impact transparency
and decision making of the Board. If such positions exist, and retired directors assume them, it is desirable that the company discloses
their existence, their expected roles and contributions and compensations for such posts.
(1)
Number
of board members and change in board composition
•
We
decide how to vote on proposals concerning the number of board members and change in board composition, taking into account the impacts
on the subject company and shareholders’ economic interests compared to the current situations.
•
The
number of board members should be optimized to make the right management decision at the right time. We may consider each company’s
business situation and scale. However, we generally consider voting against the appointment of top executives and a nominating committee
chair at a company three Committees if the number of board members is expected to exceed 20 without decreasing from the previous AGM,
and reasonable explanations are not given.
•
We
generally vote against the appointment of top executives and a nomination committee chair at a company three Committees if a decrease
in outside directors or an increase in internal directors reduces the percentage of outside directors to less than half of the board members.
•
If
there are no females on the Board, we consider voting against the appointment of top executives and a nomination committee chair at a
company three Committees. However, this shall not apply if we confirm sufficient planning or special circumstances on increasing the number
of female directors in engagements.
•
We
believe that board diversity is important and may set a higher target for a female board member ratio in the future. Similarly, we may
set a racial and nationality diversity target, especially for companies with global business operations.
(2)
Procedures
of board director appointment, scope of their responsibilities and so on
•
We
decide how to vote on proposals concerning change in board director appointment procedures, taking into account the rationales, and so
on, compared to the current procedures.
•
We
generally vote against proposals reducing board directors’ responsibilities for financial damages on fiduciary duty breach.
•
Board
directors’ responsibilities include effective monitoring of top executives succession planning. The Nomination Committee at a company
with three Committees or the arbitrary Nomination Committee created at a company with the other governance structures should provide effective
monitoring of successor development and appointment with transparency. It is desirable that an independent outside
E-23
director
serves as Nomination Committee Chair. If we judge that the succession procedure significantly lacks transparency and rationality, we consider
voting against the appointment of top executives.
4.
Appointment of Statutory
Auditors (Kansayaku)
We
decide how to vote on proposals concerning the appointment of statutory auditors, taking into account their independence, competence and
anti-social activities records (if any), and so on. We decide how to vote on the reappointment of statutory auditors, taking into account
their corporate governance practices and accountability during their tenures, the company’s anti-social activity records, and so
on in addition to the above factors.
Statutory
auditors and audit committee board directors at a company with Audit committee or three Committees should have deep knowledge specialized
in accounting, laws and regulations and should make best efforts to continuously gain knowledge and skills to fulfill the critical role
and responsibilities in the company’s governance. A company should also provide sufficient training opportunities.
(1)
Independence
•
We
generally vote against the appointment of outside statutory auditors without independency.
•
In
general, a person who has no relationship with the subject company other than a statutory auditor appointment is regarded as independent.
•
We
regard that an outside statutory auditor with a significantly long tenure is not independent and generally vote against the reappointment
of such an outside statutory auditor. We generally consider voting against the candidate whose tenure is longer than ten years.
(2)
Attendance
rate and concurrent duties
•
All
statutory auditors are expected to attend board or board of statutory auditors meetings in principle. A companies is generally obligated
to facilitate all statutory auditors to attend these meetings. We generally vote against the reappointment of statutory auditors who attended
less than 75% of board or board of statutory auditors meetings.
•
We
take into account not only the number of attendance but nomination reasons and candidates’ real contributions if disclosed.
•
We
take extra care when we assess the capability of statutory auditors who have many concurrent duties as an outside director or outside
statutory auditor of listed companies, as such cases potentially arise doubts about their capacity given the importance of outside statutory
auditors’ role and responsibilities. Accordingly, we consider voting against the appointment of statutory auditors who perform
five or more duties as a board director or statutory auditor of a listed company or equivalent company. If a company nominates a statutory
auditor with many concurrent duties, it should give reasonable explanations. It is also desirable that the company contrives disclosure
timing and methods to allow investors to understand the situation enough.
(3)
Accountability
•
If
there are material concerns about a published audit report or audit procedures, or insufficiencies of required disclosures, we vote against
the reappointment of statutory auditors.
(4)
Company’s
anti-social activities
•
If
we judge that a corporate scandal damages or is likely to damage shareholder value with having a significant impact on society during
a statutory auditor’s tenure, we conduct adequate dialogues with the subject company on the background and subsequent resolutions
of the scandal. Based on the dialogues, we decide how to vote on the reappointment of statutory auditors, considering the impact on shareholder
value.
•
With
respect to domestic corporate scandals, at the time a company receives administrative
E-24
dispositions
to cartel, bid-rigging, and so on from authorities, such as the Fair Trade Commission, we consider voting against the reappointment of
statutory auditors. However, in case the final dispositions are subsequently determined based on appeal or complaints resolutions, we
do not vote against the reappointment again at that time. We vote on a case-by-case basis concerning compensation orders in a civil case,
dispositions from the Consumer Affairs Agency or administrative dispositions from overseas authorities.
•
With
respect to administrative dispositions to an unlisted subsidiary or affiliate, we consider voting against the reappointment of statutory
auditors of the holding or parent company. If a subsidiary or affiliate is listed, we consider voting against the reappointment of statutory
auditors of both the subsidiary or affiliate and the holding or parent company. However, we may decide on a case-by-case basis, depending
on the importance of the dispositions to the subsidiary or affiliate, its impact on the holding or parent company’s financial performance,
and so on.
•
With
respect to employees’ scandals, if the scandal damages or is likely to damage shareholder value, and we judge that the subject
company owes management responsibility, we consider voting against the reappointment of statutory auditors.
•
We
consider voting against the reappointment of statutory auditors if the subject company engages in window-dressing or inadequate accounting
practices during their tenures.
5.
Composition of Board
of Statutory Auditors (Kansayaku)
We
decide how to vote on proposals concerning the number of members or change in composition of the board of statutory auditors, taking into
account the impact on the subject company and shareholders’ economic interests compared to the current situations.
•
We
consider an increase in statutory auditors favorably. However, in case of a decrease, we consider voting against the reappointment of
top executives unless clear and reasonable explanations are given.
6.
Appointment of Accounting
Auditors
We
decide how to vote on proposals concerning the appointment and replacement of accounting auditors, taking into account their competence,
audit fee levels, and so on.
•
We
generally vote against the reappointment of statutory auditors (Kansayaku) or audit committee board members at a company with Audit Committee
or three Committees if we judge that a company reappoints an accounting auditor without replacing it despite the following accounting
audit problems.
•
It
is determined that an accounting auditor provides an unfair opinion on the company’s financial conditions.
•
In
case there are concerns on financial statements, required disclosures are insufficient.
•
In
case an accounting auditor has a service contract other than accounting audit services with the subject company, it is regarded that such
a contract creates a conflict of interest between them.
•
Excessive
audit fees are paid.
•
It
is regarded that an accounting auditor makes fraud or negligence.
•
If
it is regarded that an accounting auditor has issues in other company’s audits, in case a company appoints or reappoints the accounting
auditor without replacing it, we take the impact on the company’s corporate value full consideration into voting decisions.
•
We
generally vote against proposals concerning accounting auditor replacement if it is regarded that a company changes an incumbent accounting
auditor due to a dispute about accounting principles.
E-25
7.
Compensation for Board
Directors, Statutory Auditors (Kansayaku) and Employees
(1)
Board
directors’ salaries and bonuses
•
It
is desirable to increase the proportion of stock incentive plans in board directors’ salaries and bonuses, on condition that a
performance-based compensation structure is established, transparency, such as disclosures of a benchmark or formula laying the foundations
for calculation, ensures accountability, and the impact on shareholders, such as dilution, are taken into considerations. The Remuneration
Committee at a company with three Committees (Nomination, Audit and Remuneration) or the arbitrary Remuneration Committee preferably deployed
at a company with the other governance structures should ensure the accountability of compensation schemes. It is desirable that an independent
outside director serves as Remuneration Committee Chair.
•
We
consider voting against proposals seeking approval for salaries and bonuses in the following cases.
•
Negative
correlation between company’s financial performance and directors’ salaries and bonuses are observed.
•
Inappropriate
systems and practices are in place.
•
The
total amount of salaries and bonuses is not disclosed.
•
Management
failures, such as a significant share price decline or serious earnings deterioration, are apparent.
•
The
remuneration proposal includes people determined to be responsible for activities against shareholder interest.
•
We
generally vote for shareholder proposals requesting disclosure of individual directors’ salaries and bonuses.
•
If
a company implements any measures ensuring transparency other than disclosure, we take it into consideration.
•
If
there is no proposal seeking approval for directors’ salaries and bonuses, and the compensation structure lacks transparency, we
consider voting against the appointment of top executives.
•
We
generally vote against bonuses for statutory auditors at a company with Board of Statutory Auditors and audit committee board members
at a company with Audit Committee.
•
We
separately consider voting to audit committee board members at a company with three Committees.
(2)
Stock
incentive plans
•
We
decide how to vote on proposals concerning stock incentive plans, including stock options and restricted stock units, taking into account
the impact on shareholder value and rights, compensation levels, the scope, the rationales, and so on.
•
We
generally vote against proposals seeking to lower the strike price of stock options.
•
We
generally vote for proposals seeking to change the strike price on condition that shareholders’ approval is required every time.
•
We
generally vote against stock incentive plans if the terms and conditions for exercising options, including equity dilution, lack transparency.
We generally consider voting against proposals potentially causing 10% or more equity dilution.
•
It
is desirable that stock incentive plans is a long-term incentive aligned with sustainable growth and corporate value expansion. As such,
we generally vote against stock incentive plans allowing recipients to exercise all the rights within two years after vested for the subject
fiscal year. However,
E-26
this
shall not apply to recipients who retire during the subject fiscal year. We assess the validity if a vesting period is regarded as too
long.
•
We
generally vote against stock incentive plans granted to statutory auditors and audit committee board members at a company with Audit Committee.
•
We
separately consider stock incentive plans granted to audit committee board members, including both inside and outside directors, at a
company with three Committees.
•
We
generally vote against stock incentive plans granted to any third parties other than employees.
•
We
generally vote against stock incentive plans in case a company is likely to adopt the plans as takeover defense.
(3)
Employee
stock purchase plan
•
We
decide how to vote on proposals concerning employee stock purchase plans, taking into account the impact on shareholder value and rights,
the scope and the rationales, and so on.
(4)
Retirement
benefits for board directors
•
We
decide how to vote on proposals concerning grant of retirement benefits, taking into account the scope and scandals (if any) of recipients
and business performance and scandals (if any) of the subject company, and so on.
•
We
generally vote for proposals granting retirement benefits if all the following criteria are satisfied.
•
The
granted amount is disclosed.
•
Outside
directors, statutory auditors and audit committee board members at a company with Audit Committees are excluded.
•
Recipients
do not cause any significant scandals during their tenures.
•
The
subject company does not make a loss for the three consecutive years, or its business performance is not determined to significantly lag
behind the peers in the same industry.
•
The
company does not cause scandals that significantly impact society and damage, or are unlikely to damage, shareholder value during their
tenures.
•
The
company does not engage in window-dressing or inadequate accounting practices during their tenures.
8.
Cross-shareholdings
If
a company holds shares for the sake of business relations (cross shareholdings), the company should explain the medium- to long-term business
and financial strategies, including capital costs, and disclose proxy voting guidelines, voting results, and so on. If the company does
not give reasonable explanations and engage in constructive dialogues, we consider voting against the appointment of top executives. It
is important that the company does not hinder the sales/reduction of cross shareholdings when a policy shareholder intends.
•
If
a company's cross shareholdings account for 20% or more of its net assets, we generally consider voting against the appointment of top
executives. However, this shall not apply if we confirm that the company makes a reduction, does sufficient planning or has industry-
specific circumstances that should be taken into consideration in engagement.
9.
Capital Policy
As
a listed companies’ capital policy is likely to significantly impact shareholder value and interests, a company should implement
a rational capital policy and explain capital policy guidelines to shareholders. We consider voting against proposals concerning capital
policies that we judge damage shareholder value. If a
E-27
company has a capital
policy that is not part of proposals at an AGM but regarded to damage shareholder value, we consider voting against the reappointment
of board directors.
•
It
is undesirable that a company intends to maintain or increase so-called “friendly” stable shareholders and infringes minority
shareholders’ rights by the third-party allotment, treasury stocks transfer or company management holdings’ transfer to
foundations affiliated with the company.
(1)
Change
in authorized shares
•
We
decide how to vote on proposals seeking to increase authorized shares, taking into account the impact on shareholder value and rights,
the rationales, the impact on the sustainability of stock market listing and a going concern, and so on.
•
We
generally vote for proposals seeking to increase authorized shares if we judge that not increasing authorized shares is likely to lead
to delisting or have a significant impact on a going concern.
•
We
generally vote against proposals seeking to increase authorized shares after an acquirer emerges.
(2)
New
share issue
•
We
decide how to vote on new share issues, taking into account the rationales, the terms and conditions of issues, the impact of dilution
on shareholder value and rights and the impact on the sustainability of stock market listing or a going concern, and so on.
(3)
Share
repurchase and reissue
•
We
decide how to vote on proposals concerning share repurchase or reissue, taking into account the rationales, and so on.
(4)
Stock
split
•
We
generally vote for proposals seeking a stock split.
(5)
Consolidation
of shares (reverse stock split)
•
We
decide how to vote on proposals seeking consolidation of shares, taking into account the rationale, and so on.
(6)
Preferred
shares
•
We
generally vote against proposals seeking to issue blank-cheque preferred shares or increase authorized shares without specifying voting
rights, dividends, conversion and other rights.
•
We
generally vote for proposals seeking to issue preferred shares or increase authorized shares if voting rights, dividends, conversion and
other rights are specified, and those rights are regarded as reasonable.
•
We
generally vote for proposals requiring approvals for preferred shares issues from shareholders.
(7)
Convertible
bonds
•
We
decide how to vote on proposals seeking to issue convertible bonds, taking into account the number of new shares, the time to maturity,
and so on.
(8)
Corporate bonds and credit facilities
•
We
decide how to vote on proposals concerning a corporate bond issue or a credit facility expansion, taking into account the subject company’s
financial conditions, and so on.
(9)
Debt capitalization
•
We
decide how to vote on proposals seeking to change the number of authorized shares or issue shares for debt restructuring, taking into
account the terms and conditions of the change or the issue, the impact
E-28
on shareholder
value and rights, the rationales, the impact on the sustainability of stock market listing and a going concern, and so on.
(10)
Capital reduction
•
We
decide how to vote on proposals concerning capital reduction, taking into account the impact on shareholder value and rights, the rationales
and the impact on the sustainability of stock market listing and a going concern, and so on.
•
We
generally vote for proposals seeking capital reduction following standard accounting procedures.
(11)
Financing plan
•
We
decide how to vote on proposals concerning a financing plan, taking into account the impact on shareholder value and rights, the rationales
and the impact on the sustainability of stock market listing and a going concern, and so on.
(12)
Capitalization of reserves
•
We
decide how to vote on proposals seeking capitalization of reserves, taking into account the rationales, and so on.
10.
Amendment to Articles
of Incorporation and Other Legal Documents
(1)
Change in an accounting period
•
We
generally vote for proposals seeking to change an accounting period unless it is regarded as an aim to delay an AGM.
(2)
Amendment to articles of incorporation
•
We
decide how to vote on proposals to amend an article of incorporation, taking into account the impact on shareholder value and rights,
the necessity, the rationales, and so on.
•
We
generally vote for proposals seeking to amend an article of incorporation if it is required by law.
•
We
generally vote against proposals seeking to amend an article of incorporation if we judge that it is likely to infringe shareholder rights
or damage shareholder value.
•
We
generally vote for transition to a company with three Committees.
•
We
decide how to vote on proposals seeking to relax or eliminate special resolution requirements, taking into account the rationale.
•
We
are concerned about retired directors assuming advisory, consulting, or other similar positions which could negatively impact on transparency
and decision making of the Board of Directors. We generally vote against proposals seeking to create such a position.
•
We
generally vote for proposals seeking to authorize a company to hold virtual-only meetings, taking into account the impact on shareholder
value and rights.
•
We
will consider, among other things, a company’s practices, jurisdiction and disclosure, including the items set forth below:
•
meeting
procedures and requirements are disclosed in advance of a meeting detailing the rationale for eliminating the in-person meeting,
•
safeguard
and clear and comprehensive description as to how and when shareholders submit and ask questions either in advance of or during the meeting,
•
disclosure
regarding procedures for questions received during the meeting, but not answered due to time or other restrictions, and
E-29
•
description
of how shareholder rights will be protected in a virtual-only meeting format including the ability to vote on proposals during the time
the polls are open.
(3)
Change in a quorum for an annual general meeting (AGM)
•
We
decide how to vote on proposals concerning change in quorum for an AGM, taking into account the impact on shareholder value and rights,
and so on.
11.
Company Organization
Change
(1)
Change in a registered company name and address
•
We
decide how to vote on proposals seeking to change a registered company name, taking into account the impact on shareholder value, and
so on.
•
We
generally vote for proposals seeking to change a registered address.
(2)
Company reorganization
•
We
decide how to vote on proposals concerning the following company reorganization, taking into account their respective impacts on shareholder
value and rights, the subject company’s financial conditions and business performance, and the sustainability of stock market listing
or a going concern, and so on.
Mergers
and acquisitions
Business
transfers
Company
split (spin-off)
Asset
sale
Company
sale
Liquidation
12.
Proxy Fight
(1)
Proxy
fight
•
We
decide how to vote on proposals concerning the appointment of directors with opposition candidates, taking into account their independence,
competence, anti-social activity records (if any), corporate governance practices and accountability of the candidates and business performance
and anti-social activity records (if any) of the subject company, the proxy fight background, and so on.
(2)
Proxy
context defense
•
Classified
board
•
We
generally vote against proposals seeking to introduce a classified board.
•
We
generally vote for proposals seeking to set a director's term of one year.
•
Shareholder
rights to remove a director
•
We
generally vote against proposals seeking to tighten requirements for shareholders to remove a director.
•
Cumulative
voting
•
We
decide how to vote on proposals seeking to introduce cumulative voting for director appointments, taking into account the background,
and so on.
E-30
•
We
decide how to vote on proposals seeking to terminate cumulative voting for director appointment, taking into account the background, and
so on.
13.
Takeover Defense
We
believe that management and shareholder interest is not always aligned. As such, we generally vote against the creation, amendment and
renewal of takeover defense measures that we judge decrease shareholder value or infringes shareholder rights. We generally vote against
the reappointment of directors if takeover defense measures are not part of proposals at an AGM but are regarded to decrease shareholder
value or infringes shareholder rights.
•
Relaxing
requirements to amend articles of incorporation and company policies
•
We
decide how to vote on proposals seeking to relax requirements to amend articles of incorporation or company policies, taking into account
the impact on shareholder value and rights, and so on.
•
Relaxing
of requirements for merger approval
•
We
decide how to vote on proposals seeking to relaxing requirements for merger approval, taking into account the impact on shareholder value
and rights, and so on.
14.
Environment, Social
and Governance (ESG)
We
support the United Nations Principles for Responsible Investment (UN PRI) and acknowledge that company’s ESG practices are an important
factor in investment decision making. Thus, we consider voting against the reappointment of top executives and directors in charge if
we judge that there is an issue that could significantly damage corporate value. We consider voting for proposals related to ESG materiality,
including climate change or diversity, if we judge that such proposals contribute to preventing from damaging or expanding corporate value.
If not, we consider voting against such proposals.
15.
Disclosure
Disclosure
and constructive dialogues based thereon are important in proxy voting and investment decision making. Furthermore, proactive disclosure
and effective engagement are desirable as demand for ESG disclosure, including climate change, has been increasing, and the disclosure
frameworks have been rapidly progressing.
•
We
generally vote against proposals that lack sufficient disclosure to make proxy voting decisions.
•
We
generally vote for proposals seeking to enhance disclosures if such information is beneficial to shareholders.
•
If
a company’s financial and non-financial disclosures is significantly poor, and if the level of investor relations activities by
management or people in charge is significantly low, we consider voting against the reappointment of top executives and directors in charge.
16.
Conflict of Interest
We
abstain from voting proxies of the following companies that are likely to have a conflict of interest. We also abstain from voting proxies
with respect to the following investment trusts that are managed by us or Invesco group companies, as a conflict of interest may rise.
•
Companies
and investment trusts that we abstain from voting proxies:
•
Invesco
Ltd.
We
have established the Conflict of Interest Management Policy. In the situation that may give rise to a conflict
of interest, we aim to control it in the best interests of clients (investors) and beneficiaries. The Compliance department is responsible
for governing company-wide control of a conflict of interest. The Compliance department is independent of the Investment and Sales departments
and shall not receive any
E-31
command
or order for the matters compliant with the laws and regulations, including a conflict of interest, from the
Investment and Sales departments.
Proxy
voting and stewardship activities are reported to the Responsible Investment Committee. The Responsible
Investment Committee approves them. Besides, the Compliance department reviews whether conflicts of interest are properly managed in proxy
voting and then reports the results to the Conflict of Interest Oversight Committee. Furthermore, the results are reported to the Executive
Committee in Tokyo and the Invesco Proxy Advisory Committee.
17.
Shareholder Proposals
We
vote on a case-by-case basis on shareholder proposals while we follow the Proxy Voting Guidelines in principle.
DISCLAIMER:
The English version is a translation of the original in Japanese for information purposes only. In case of a discrepancy, the Japanese
original will prevail. You can download the Japanese version from our website: http://www.invesco.co.jp/footer/proxy.html.
2092318-JP
E-32
Invesco
Asset Management (India) Pvt. Ltd.
Voting
Policy
A.
Preamble
SEBI
vide its circular reference no. SEBI/IMD/Cir No.18/198647/2010 dated March 15, 2010 has stated that mutual fund should play an active
role in ensuring better corporate governance of listed companies. The said circular stated that the AMCs should disclose their general
policies and procedures for exercising the voting rights in respect of shares held by them.
Subsequently,
SEBI vide its circular ref. no. CIR/IMD/DF/05/2014 dated March 24, 2014, SEBI/HO/IMD/DF2/CIR/P/2016/68 dated August 10, 2016, SEBI vide
its circular ref. no. CIR/CFD/CMD1/ 168 /2019 dated December 24, 2019 and SEBI/HO/IMD/DF4/CIR/P/2021/29 dated March 5, 2021 have amended
certain provisions of above mentioned circular specifying additional compliance / disclosure requirements with respect to exercise of
voting rights by mutual funds so as to further improve transparency as well as encourage Mutual Funds/AMCs to diligently exercise their
voting rights in best interest of the unitholders. In this respect, AMFI vide its best practices guidelines circular no. 35P/ MEM-COR/
51/ 2020-21 dated March 09, 2021 has communicated that it would be mandatory for the Mutual Funds to cast their votes ‘For’
or ‘Against’ and Abstention will not be counted as having voted.
This
policy is drafted in pursuance of SEBI circular dated March 15, 2010 read with March 24, 2014, August 10, 2016, December 24, 2019 and
circular dated March 5, 2021 and provides general philosophy, broad guidelines, procedures and principles for exercising voting rights.
Invesco
Asset Management (India) Private Limited (“IAMI”)
is an Investment Manager to the scheme(s) of Invesco Mutual Fund (“the
Fund”). As an investment manager, IAMI has fiduciary responsibility
to act in the best interest of unit-holders of the Fund. This responsibility includes exercising voting rights attached to the securities
of the companies in which the schemes of the Fund invest. It will be IAMI’s endeavor to participate in the voting process (i.e.
exercise voting rights) based on the philosophy enunciated in this policy.
B.
Philosophy
of Voting Policy
Good
corporate governance ensures that a corporation is managed keeping in mind the long-term interest of shareholders. Promoting good corporate
governance standards forms an integral part of corporate ownership responsibilities.
With
this in the forefront, IAMI expects all corporations, in which it invests in, to comply with high corporate governance standards. Accordingly,
as the decision to invest is generally an endorsement of sound management practices, IAMI may generally vote with the management of these
corporations. However, when IAMI is of the view that the unit holders will be prejudiced by any such proposal, then it may vote against
such proposal to protect the interest of unit holders. Also, in case of resolutions moved by the shareholders of the company, IAMI will
exercise its voting rights in the best interest of its unit holders. Other than matters mentioned under section D (I), in certain circumstances,
IAMI may also decide to refrain from voting where it has insufficient information or there is conflict of interest or it does not have
a clear stance on the proposal under consideration.
IAMI,
as an investment manager, will generally vote in accordance with the Voting Policy. However, it may deviate from the policy if there are
particular facts and/or circumstances that warrant for such deviation to protect the interests of unit-holders of the Fund.
C.
Conflict
of Interest in Exercising Voting Rights
IAMI,
under schemes, may invest in the securities of associate/group companies (to the extent permitted under SEBI (Mutual Funds) Regulations,
1996 as amended from time to time). Further, IAMI is an Indian subsidiary of global organization consisting of many affiliates. Moreover,
schemes under IAMI may invest in securities of companies which have invested in schemes of Invesco Mutual Fund. Such scenarios may lead
E-35
to a situation creating
conflict of interest. Potential Conflict of interest may also arise if IAMI and the investee company are associates or are part of the
same group; or the investee company holds a material ownership interest in IAMI; a nominee of IAMI has been appointed as a director of
the investee company or having cross-directorships, the Investee Company is an entity participating in the distribution of investment
products advised or administered by the Investment Manager and/or any of its affiliate; the Investee Company is a client of Investment
Manager and/or its affiliates.
IAMI
will attempt to avoid conflict of interest and will exercise its voting rights in the best interest of the unit-holders. Voting decisions
in such cases will be based on merits without any bias and the same parameters will be applied for taking voting decisions as are applied
for other companies.
In
cases where there is a potential conflict of interest, IAMI will vote exactly as per recommendations of the proxy voting advisory entity
with no modifications whatsoever. In case there is need for a clearer direction, the matter may be referred to the Investment committee
for its guidance. Rationale for decision taken/ voting on the issue shall be recorded.
D.
Voting
Policy Guidelines
I.
The matters regarding, but not limited to, which the IAMI will exercise the voting rights in the Annual General Meeting (AGMs) /Extra
Ordinary General Meeting (EGMs)/ Through Postal Ballots/Electronic voting of the investee companies are as follows:
•
Corporate
governance matters, including changes in the state of incorporation, merger and other corporate restructuring and anti- takeover provisions.
•
Changes
to capital structure, including increase and decrease of capital and preferred stock issuances.
•
Stock
option plans and other management compensation issues.
•
Social
and corporate responsibility issues.
•
Appointment
and Removal of Directors.
•
Any
other issue that may affect the interest of the shareholders in general and interest of the unit- holders in particular.
•
Related
party transactions of the investee companies (excluding own group companies). For this purpose, “Related Party Transactions”
shall have same meaning as assigned to them in clause (zc) of Sub-Regulation (1) of Regulation (2) of the SEBI (Listing Obligation and
Disclosure Requirements) Regulations, 2015.
Effective
April 01, 2021, voting shall be mandatory for all resolutions mentioned above. Further, for all remaining resolutions which are not covered
in (I) above, IAMI will compulsorily be required to cast votes with effect from April 01, 2022.
II.
In case of the Mutual Funds having no economic interest on the day of voting, it may be exempted from compulsorily casting of votes.
III.
The vote shall be cast at Mutual Fund Level. However, in case Fund Manager/(s) of any specific scheme has strong view against the views
of Fund Manager/(s) of the other schemes, the voting at scheme level shall be allowed subject to recording of detailed rationale for the
same.
IAMI
will exercise voting rights keeping in mind the need to improve economic value of the companies and importance of protecting the interests
of unit holders of its schemes but subject to importance of the matter and cost/time implications. The analysts in equity team will make
recommendations on key voting issues and same will be approved by the Head of Equity or Fund Manager. In case of conflicts or need for
a clearer direction, the matter may be referred to the Voting Committee for its guidance.
E-36
E.
Voting
Committee
As
a guiding principle, IAMI shall exercise voting rights solely in the interest of unit holders of the Fund. IAMI has constituted a Voting
Committee (VC).The Committee is empowered to provide guidance on the voting matters referred to it, establish voting guidelines and procedures
as it may consider necessary and is responsible to ensure that these guidelines and procedures are adhered to and also make changes in
the Policy as may be required from time to time. The members of this Committee are as follows:
•
CEO
/ COO/Head - Operations (any one)
•
Head
of Compliance or Member of compliance team
•
Head
of Equity or Fund Manager (equity)
•
Head
of Fixed Income and/ or Fund Managers (fixed income)
•
Any
other representative as the Committee may co-opt from time to time
Broad
Guidelines for functioning of Voting Committee are:
1.
Voting Committee may record its decisions by circulation including decisions/guidance on voting matters
that have been referred to it.
2.
Voting Committee may consult with outside experts and other investors on issues as it may deem fit.
3.
Decisions of Voting Committee should be maintained by compliance.
4.
Details of voting decisions taken by the Fund Management team will be presented to the Voting Committee/Investment
Committee.
5.
Voting Committee may review this policy from time to time.
F.
Steps
(Procedure) in Exercising Voting Rights
The
following points outline the key steps in exercising Voting rights:
1)
Notification of company AGMs / EGMs and relevant voting items to Fund Management Team.
2)
IAMI shall endeavor to vote for all holdings of the Fund aggregated
for all its schemes. The voting will cover all equity holding across all schemes of Invesco Mutual Fund including passive investments
like Index Funds, Exchange Traded Fund etc.
3)
Custodian will send ballots and or other relevant papers (notice of meeting, proxy form, attendance slips
etc.) to IAMI relating to AGM/EGM as soon as it receives.
4)
The fund management team is authorized to decide on voting decisions but may refer decisions to the Voting
Committee for its guidance/direction.
5)
Based on internal discussion within the fund management team, a decision would be arrived to vote on the
proposed resolution. Routine matters and ordinary resolutions like adoption of financials (unless there are significant auditor qualifications),
dividend declaration, general updating/corrective amendments to the Articles of Association would also be considered for voting purpose.
However, IAMI may on a case to case basis, not vote on such resolutions, if it deems fit to do so.
6)
IAMI will generally support and vote “for” proposals which are likely to result in maximizing long-term investment
returns for unit holders. IAMI would not support and will vote “against” proposals that appear to be detrimental to the
company financials / interest of the minority shareholders or which would adversely impact shareholders’ value.
7)
IAMI may exercise its voting rights by authorizing its own executives/authorized representative to attend
the AGM/EGM or may instruct the Custodian to exercise voting rights in accordance with the instructions of IAMI.
E-37
8)
IAMI may exercise its voting rights through Postal Ballot or may use Electronic voting mechanism, wherever
available, either through its own executives or by authorizing the Custodian. The records of voting exercised through Postal Ballot will
be maintained by IAMI.
9)
IAMI may utilize the services of third party professional agencies for getting in-depth analyses of proposals
and vote recommendations. However, the recommendations of the third party agencies will be non-binding in nature. IAMI will perform due
diligence on proxy voting advisory firms at the time of initial selection as well as at the time of renewal of services of the proxy voting.
The due diligence will be carried out on parameters viz. resource strength, Companies under coverage, extent of institutional ownership,
depth of analysis, quality of advice / recommendations, analyst access & support, timely availability of reports, composition of board
of directors, advisory board and top management, web-based interface platform and clientele.
10)
The rationale supporting each voting decision (For, Against and Abstain) will be recorded and such records
will be retained for number of years (currently 8 years) as may be required under the SEBI (Mutual Funds) Regulations, 1996 from time
to time.
G.
Details
of Service Provider
IIAS
(Institutional Investor advisory Services) has been appointed as our proxy voting advisor. The scope of the agreement with IIAS includes:
IIAS shall provide non-binding Voting Recommendations for each Voting Event for Investee companies, access to their research portal and
analysts for any discussion, access to their online voting management systems etc. The details of the service provider (currently IIAS)
are provided in the “Rationale for continuation of Proxy Voting advisory report” which is prepared once in 2 years. IIAS
has standardized voting policies and has a committee-based voting decision making system. Their analysis to arrive at the recommendations
are detailed in nature and recommendations are fairly objective. However, the recommendations of IIAS are non-binding in nature, and IAMI,
reserves the right to vote differently based on their own judgement on the matter involved.
H.
Disclosures
The
disclosures of voting rights exercised are as follows:
•
Details
of votes cast by the schemes of the Fund will be uploaded on the website of IAMI (www.invescomutualfund.com)
(in machine readable spreadsheet form) on a quarterly basis in the prescribed format within the stipulated timelines as prescribed by
SEBI from time to time.
•
Details
of votes cast by the schemes of the Fund will be uploaded on the website of IAMI (www.invescomutualfund.com)
on an annual basis in the prescribed format. Further, AMCs shall provide the web link in the Annual Reports of the schemes of the Fund
regarding the disclosure of voting details.
•
Summary
on actual exercise of votes cast and its break-up in terms of total number of votes cast in favor, against or abstained will also be uploaded
on the website of IAMI (www.invescomutualfund.com)
on an annual basis.
I.
Certification/Confirmation
•
On
an annual basis, IAMI will obtain a certification from scrutinizer (in terms of Rule 20 (3) (ix) of Companies (Management and Administration)
Rules, 2014) on voting reports and the same will be placed before the Boards of AMC and Trustee. The scrutinizer’s certificate
will form part of Annual Report and will also be uploaded on the website of IAMI (www.invescomutualfund.com).
•
A
confirmation shall also be submitted by Trustees in its half yearly report to SEBI that IAMI have voted on important decisions affecting
interests of unitholders.
E-38
APPENDIX
F - CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
To
the best knowledge of the Trust, the names and addresses of the record and beneficial holders of 5% or
more of the outstanding shares of each class of the Funds' equity securities and the percentage of the outstanding shares held by such
holders are set forth below. Unless otherwise indicated below, the Trust has no knowledge as to whether all or any portion of the shares
owned of record are also owned beneficially.
A
shareholder who owns beneficially 25% or more of the outstanding securities of a Fund is presumed to “control”
that Fund as defined in the 1940 Act. Such control may affect the voting rights of other shareholders.
All
information listed below is as of April 3,
2023.
Invesco
Active Allocation Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
AMERICAN
ENTERPRISE
INVESTMENT
SVC
707
2ND AVE SOUTH
MINNEAPOLIS
MN 55402-2405 |
—
|
—
|
—
|
5.62%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
CHARLES
SCHWAB & CO INC
SPECIAL
CUSTODY A/C
FBO
CUSTOMERS
ATTN
MUTUAL FUNDS
211
MAIN ST
SAN
FRANCISCO CA 94105-1901 |
—
|
—
|
—
|
—
|
—
|
26.43%
|
|
|
|
|
|
|
|
|
|
EMPOWER
TRUST COMPANY LLC
CRANE
INDEPENDENT SCHOOL
DISTRICT
P
C/O
FASCORE LLC
8515
E ORCHARD RD 2T2
GREENWOOD
VILLAGE CO 80111-5002 |
—
|
—
|
—
|
—
|
—
|
21.54%
|
|
|
|
|
|
|
|
|
|
EMPOWER
TRUST COMPANY LLC
CRANE
INDEPENDENT SD NON
ERISA
403B
C/O
FASCORE LLC
8515
E ORCHARD RD 2T2
GREENWOOD
VILLAGE CO 80111-5002 |
—
|
—
|
—
|
—
|
—
|
32.92%
|
|
|
|
|
|
|
|
|
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
86.43%
|
19.11%
|
|
|
|
|
|
|
|
|
|
LINCOLN
INVESTMENT PLANNING, LLC
FBO
LINCOLN CUSTOMERS
601
OFFICE CENTER DR STE 300
FT
WASHINGTON PA 19034-3275 |
—
|
—
|
—
|
8.85%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
--OMNIBUS
CUSTOMER ACCOUNT--
ATTN
LINDSAY OTOOLE
4707
EXECUTIVE DRIVE
SAN
DIEGO CA 92121-3091 |
—
|
—
|
—
|
6.41%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FOR
EXCLUSIVE BEN OF CUSTOMERS
200
LIBERTY STREET
ONE
WORLD FINANCIAL CENTER
ATTN
MUTUAL FUNDS 5TH FLOOR
NEW
YORK NY 10281-1003 |
—
|
—
|
—
|
24.08%
|
—
|
—
|
|
|
|
|
|
|
|
|
F-1
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
PERSHING
LLC
1
PERSHING PLAZA
JERSEY
CITY NJ 07399-0001 |
—
|
—
|
—
|
10.13%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLZ
JERSEY
CITY NJ 07399-0001 |
—
|
—
|
—
|
—
|
13.57%
|
—
|
|
|
|
|
|
|
|
|
|
RAYMOND
JAMES
OMNIBUS
FOR MUTUAL FUNDS
HOUSE
A/C
ATTN
COURTNEY WALLER
880
CARILLON PARKWAY
ST
PETERSBURG FL 33716-1102 |
—
|
—
|
—
|
5.26%
|
—
|
—
|
Invesco
Convertible Securities Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||
|
|
Class
A |
Class
C |
Class
Y |
Class
R5 |
Class
R6 |
|
AMERICAN
ENTERPRISE INVESTMENT SVC
707
2ND AVE S
MINNEAPOLIS
MN 55402-2405 |
—
|
—
|
9.28%
|
—
|
—
|
|
|
|
|
|
|
|
|
ASCENSUS
TRUSTCO FBO
LEGAL
AID SOCIETY OF ORANGE COUNTY
P
O BOX 10758
FARGO
ND 58106-0758 |
—
|
—
|
—
|
44.00%
|
—
|
|
|
|
|
|
|
|
|
BNY
MELLON INVESTMENT SERVICING INC
FBO
PRIMERICA FINANCIAL SERVICES
760
MOORE RD
KING
OF PRUSSIA PA 19406-1212 |
15.22%
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
CHARLES
SCHWAB & CO INC
SPECIAL
CUSTODY ACCT FBO CUSTOMERS
ATTN
MUTUAL FUNDS
211
MAIN ST
SAN
FRANCISCO CA 94105-1901 |
—
|
—
|
8.50%
|
—
|
—
|
|
|
|
|
|
|
|
|
EDWARD
D JONES & CO
FOR
THE BENEFIT OF CUSTOMERS
12555
MANCHESTER RD
SAINT
LOUIS MO 63131-3710 |
7.49%
|
—
|
—
|
—
|
5.26%
|
|
|
|
|
|
|
|
|
FIIOC
FBO
CRESCENT
PLUMBING SUPPLY CO INC
401K
PLAN
100
MAGELLAN WAY (KW1C)
COVINGTON
KY 41015-1987 |
—
|
—
|
—
|
23.67%
|
—
|
|
|
|
|
|
|
|
|
LABORERS
LOCAL 1298 ANNUITY FUND
681
FULTON AVE
HEMPSTEAD
NY 11550-4556 |
—
|
—
|
—
|
—
|
7.28%
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
OMNIBUS
CUSTOMER ACCOUNT
ATTN:
MUTUAL FUND TRADING
4707
EXECUTIVE DR
SAN
DIEGO CA 92121-3091 |
—
|
7.83%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
F-2
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||
|
|
Class
A |
Class
C |
Class
Y |
Class
R5 |
Class
R6 |
|
MORGAN
STANLEY SMITH BARNEY LLC
FOR
EXCLUSIVE BENEFIT OF CUSTOMERS
1
NEW YORK PLZ FL 12
NEW
YORK NY 10004-1965 |
11.35%
|
—
|
5.46%
|
—
|
—
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FEBO
CUSTOMERS
MUTUAL
FUNDS
499
WASHINGTON BLVD FL 5
JERSEY
CITY NJ 07310-2010 |
6.57%
|
6.48%
|
11.50%
|
29.62%
|
76.18%
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLAZA
JERSEY
CITY NJ 07399-0002 |
—
|
15.22%
|
27.39%
|
—
|
—
|
|
|
|
|
|
|
|
|
RAYMOND
JAMES
OMNIBUS
FOR MUTUAL FUNDS
ATTN
COURTNEY WALLER
880
CARILLON PKWY
ST
PETERSBURG FL 33716-1102 |
—
|
6.01%
|
13.67%
|
—
|
—
|
|
|
|
|
|
|
|
|
RBC
CAPITAL MARKETS LLC
MUTUAL
FUND OMNIBUS PROCESSING
OMNIBUS
ATTN
MUTUAL FUND OPS MANAGER
250
NICOLLET MALL STE 1400
MINNEAPOLIS
MN 55401-7554 |
—
|
5.47%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
WELLS
FARGO CLEARING SERVICES LLC
SPECIAL
CUSTODY ACCT FOR THE
EXCLUSIVE
BENEFIT OF CUSTOMER
2801
MARKET ST
SAINT
LOUIS MO 63103-2523 |
—
|
6.50%
|
—
|
—
|
—
|
Invesco
Income Advantage International Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
AMERICAN
UNITED LIFE GROUP
RETIREMENT
ANNUITY
PO
BOX 398
INDIANAPOLIS
IN 46206 |
—
|
—
|
—
|
—
|
37.96%
|
—
|
|
|
|
|
|
|
|
|
|
ASCENSUS
TRUST COMPANY FBO
KAPLAN
TELEPHONE COMPANY 401(K) SAF
PO
BOX 10758
FARGO
ND 58106-0758 |
—
|
—
|
35.13%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
EDWARD
D JONES & CO
FOR
THE BENEFIT OF CUSTOMERS
12555
MANCHESTER RD
SAINT
LOUIS MO 63131-3710 |
8.68%
|
—
|
—
|
—
|
—
|
45.30%
|
|
|
|
|
|
|
|
|
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
—
|
54.70%
|
|
|
|
|
|
|
|
|
|
KOLL'S
RIVER PILOT INC
KEVIN
C KOLL
KENNER
LA |
—
|
5.78%
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
F-3
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
LPL
FINANCIAL
OMNIBUS
CUSTOMER ACCOUNT
ATTN:
MUTUAL FUND TRADING
4707
EXECUTIVE DR
SAN
DIEGO CA 92121-3091 |
—
|
—
|
—
|
9.59%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FEBO
CUSTOMERS
MUTUAL
FUNDS
499
WASHINGTON BLVD FL 5
JERSEY
CITY NJ 07310-2010 |
—
|
8.35%
|
—
|
14.46%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
NATIXIS
C/O
FUND SOLUTIONS DEPT
47
QUAI D'AUSTERLITZ
PARIS
FRANCE 75013 |
—
|
—
|
—
|
48.56%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
PAI
TRUST COMPANY, INC.
SHARP
FINANCIAL STRATEGIES 401(K) P
1300
ENTERPRISE DR
DE
PERE WI 54115-4934 |
—
|
—
|
—
|
—
|
61.29%
|
—
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLZ
JERSEY
CITY NJ 07399-0001 |
6.26%
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
RBC
CAPITAL MARKETS LLC
MUTUAL
FUND OMNIBUS PROCESSING
OMNIBUS
ATTN
MUTUAL FUND OPS MANAGER
250
NICOLLET MALL STE 1400
MINNEAPOLIS
MN 55401-7554 |
—
|
6.13%
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
STATE
STREET BANK AND TRUST AS
CUST
FBO ADP ACCESS PRODUCT
1
LINCOLN STOTECH CTR FL 6
BOSTON
MA 02111 |
—
|
—
|
23.75%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
WELLS
FARGO CLEARING SERVICES LLC
SPECIAL
CUSTODY ACCT FOR THE
EXCLUSIVE
BENEFIT OF CUSTOMER
2801
MARKET ST
SAINT
LOUIS MO 63103-2523 |
—
|
—
|
—
|
6.20%
|
—
|
—
|
Invesco
Income Allocation Fund
F-4
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
EDWARD
D JONES & CO
FOR
THE BENEFIT OF CUSTOMERS
12555
MANCHESTER RD
SAINT
LOUIS MO 63131-3710 |
46.86%
|
43.50%
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
15.13%
|
—
|
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
OMNIBUS
CUSTOMER ACCOUNT
ATTN:
MUTUAL FUND TRADING
4707
EXECUTIVE DR
SAN
DIEGO CA 92121-3091 |
—
|
5.58%
|
—
|
8.01%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
MERRILL
LYNCH PIERCE FENNER & SMITH
FBO
THE SOLE BENEFIT OF CUSTOMERS
ATTN:
FUND ADMINISTRATION
4800
DEER LAKE DR EAST 2ND FLOOR
JACKSONVILLE
FL 32246-6484 |
—
|
—
|
—
|
—
|
9.92%
|
—
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FEBO
CUSTOMERS
MUTUAL
FUNDS
499
WASHINGTON BLVD FL 5
JERSEY
CITY NJ 07310-2010 |
5.10%
|
6.01%
|
—
|
7.03%
|
7.21%
|
—
|
|
|
|
|
|
|
|
|
|
NATIONWIDE
TRUST COMPANY FSB
C/O
IPO PORTFOLIO ACCOUNTING
PO
BOX 182029
COLUMBUS
OH 43218-2029 |
—
|
—
|
—
|
—
|
59.33%
|
—
|
|
|
|
|
|
|
|
|
|
PAI
TRUSTCO INC
SONIC
SURVEYS LTD 401K PS PL
1300
ENTERPRISE DRIVE
DE
PERE WI 54115-4934 |
—
|
—
|
—
|
—
|
—
|
57.47%
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLZ
JERSEY
CITY NJ 07399-0001 |
—
|
6.72%
|
—
|
19.15%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
RAYMOND
JAMES
OMNIBUS
FOR MUTUAL FUNDS
ATTN
COURTNEY WALLER
880
CARILLON PKWY
ST
PETERSBURG FL 33716-1102 |
—
|
—
|
—
|
7.89%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
STATE
STREET BANK AND TRUST AS
CUST
FBO ADP ACCESS PRODUCT
1
LINCOLN STOTECH CTR FL 6
BOSTON
MA 02111 |
—
|
—
|
6.13%
|
—
|
8.41%
|
38.44%
|
|
|
|
|
|
|
|
|
|
WELLS
FARGO CLEARING SERVICES LLC
SPECIAL
CUSTODY ACCT FOR THE
EXCLUSIVE
BENEFIT OF CUSTOMER
2801
MARKET ST
SAINT
LOUIS MO 63103-2523 |
—
|
—
|
—
|
6.50%
|
—
|
—
|
F-5
Invesco
International Diversified Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
AMERICAN
ENTERPRISE
INVESTMENT
SVC
707
2ND AVE S
MINNEAPOLIS
MN 55402-2405 |
5.60%
|
9.19%
|
—
|
12.68%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
DCGT
AS TTEE ANDOR CUST
FBO
PLIC VARIOUS RET PLAN
OMNIBUS
ATTN
NPIO TRADE DESK
711
HIGH STREET
DES
MOINES IA 50392-0001 |
—
|
—
|
—
|
—
|
—
|
11.38%
|
|
|
|
|
|
|
|
|
|
EDWARD
D JONES & CO
FBO
CUSTOMERS
12555
MANCHESTER RD
ST
LOUIS MO 63131-3710 |
5.14%
|
—
|
—
|
—
|
—
|
12.30%
|
|
|
|
|
|
|
|
|
|
EQUITABLE
LIFE FOR SEP A/C
INS
CO ON BEHALF OF VARIOUS
EXPEDITER
401K PLANS
PO
BOX 8095
BOSTON
MA 02114-0031 |
—
|
—
|
16.16%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
GREAT-WEST
TRUSTCO LLC FBO
EMPOWER
BENEFIT PLANS
8515
E ORCHARD RD 2T2
GREENWOOD
VILLAGE CO 80111-5002 |
—
|
—
|
—
|
—
|
—
|
7.51%
|
|
|
|
|
|
|
|
|
|
HARTFORD
LIFE INSURANCE CO
SEPARATE
ACCOUNT
ATTN
UIT OPERATIONS
PO
BOX 2999
HARTFORD
CT 06104-2999 |
—
|
—
|
7.72%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
24.73%
|
—
|
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
--OMNIBUS
CUSTOMER ACCOUNT--
ATTN
LINDSAY OTOOLE
4707
EXECUTIVE DRIVE
SAN
DIEGO CA 92121-3091 |
—
|
8.25%
|
—
|
9.56%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
MASS
MUTUAL LIFE INSURANCE CO
SEPARATE
INVESTMENT A/C
1295
STATE ST MIP M200-INVST
SPRINGFIELD
MA 01111-0001 |
—
|
—
|
7.14%
|
—
|
—
|
5.33%
|
|
|
|
|
|
|
|
|
|
MERRILL
LYNCH PIERCE FENNER &
SMITH
INC
4800
DEER LAKE DR E FL 3
JACKSONVILLE
FL 32246-6484 |
—
|
—
|
—
|
12.22%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
MORGAN
STANLEY SMITH BARNEY LLC
FOR
THE EXCLUSIVE FBO ITS
CUSTOMERS
1
NEW YORK PLAZA FL 12
NEW
YORK NY 10004-1965 |
—
|
—
|
—
|
6.03%
|
—
|
—
|
|
|
|
|
|
|
|
|
F-6
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
NATIONAL
FINANCIAL SERVICES LLC
FOR
EXCLUSIVE BEN OF CUSTOMERS
200
LIBERTY STREET
ONE
WORLD FINANCIAL CENTER
ATTN
MUTUAL FUNDS 5TH FLOOR
NEW
YORK NY 10281-1003 |
8.16%
|
6.53%
|
—
|
13.37%
|
—
|
19.36%
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLAZA
JERSEY
CITY NJ 07399-0001 |
5.42%
|
6.26%
|
—
|
11.45%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLZ
JERSEY
CITY NJ 07399-0001 |
—
|
—
|
—
|
—
|
75.26%
|
—
|
|
|
|
|
|
|
|
|
|
RAYMOND
JAMES
OMNIBUS
FOR MUTUAL FUNDS
HOUSE
A/C FIRM
ATTN
COURTNEY WALLER
880
CARILLON PARKWAY
ST
PETERSBURG FL 33716-1102 |
—
|
—
|
—
|
6.19%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
RAYMOND
JAMES
OMNIBUS
FOR MUTUAL FUNDS
HOUSE
A/C
ATTN
COURTNEY WALLER
880
CARILLON PKWY
ST
PETERSBURG FL 33716-1102 |
—
|
5.25%
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
SAMMONS
FINANCIAL NETWORK
4546
CORPORATE DR STE 100
WET
DES MOINES IA 50266-5911 |
—
|
—
|
8.95%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
VANGUARD
FIDUCIARY TRUST CO
FBO
401K CLIENTS
ATTN
INVESTMENT SERVICES
PO
BOX 2600
VALLEY
FORGE PA 19482-2600 |
—
|
—
|
—
|
—
|
—
|
9.78%
|
|
|
|
|
|
|
|
|
|
WELLS
FARGO CLEARING SVCS LLC
SPECIAL
CUSTODY A/C FOR THE
EXCLUSIVE
FBO CUSTOMER
2801
MARKET ST
SAINT
LOUIS MO 63103-2523 |
—
|
6.61%
|
—
|
—
|
—
|
—
|
Invesco
Main Street Mid Cap Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
AMERICAN
ENTERPRISE
INVESTMENT
SVC
707
2ND AVE SOUTH
MINNEAPOLIS
MN 55402-2405 |
—
|
—
|
—
|
8.19%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
DCGT
AS TTEE AND OR CUST
FBO
PLIC VARIOUS RET PLAN
OMNIBUS
ATTN
NPIO TRADE DESK
711
HIGH STREET
DES
MOINES IA 50392-0001 |
—
|
—
|
—
|
—
|
—
|
6.02%
|
|
|
|
|
|
|
|
|
F-7
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
EDWARD
D JONES & CO
FBO
CUSTOMERS
12555
MANCHESTER RD
ST
LOUIS MO 63131-3710 |
7.09%
|
—
|
—
|
—
|
—
|
26.48%
|
|
|
|
|
|
|
|
|
|
EMPOWER
TRUST COMPANY LLC
RETIREMENT
PLANS
OMNIBS
8515
E ORCHARD RD 2T2
GREENWOOD
VILLAGE CO 80111-5002 |
—
|
—
|
—
|
—
|
7.34%
|
—
|
|
|
|
|
|
|
|
|
|
FIIOC
FBO
NORTHWEST
CREDIT UNION 401K
100
MAGELLAN WAY (KW1C)
COVINGTON
KY 41015-1987 |
—
|
—
|
—
|
—
|
5.18%
|
—
|
|
|
|
|
|
|
|
|
|
HARTFORD
LIFE INSURANCE CO
SEPARATE
ACCOUNT
ATTN
UIT OPERATIONS
PO
BOX 2999
HARTFORD
CT 06104-2999 |
—
|
—
|
9.05%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
MASS
MUTUAL LIFE INSURANCE CO
SEPARATE
INVESTMENT A/C
1295
STATE ST MIP M200-INVST
SPRINGFIELD
MA 01111-0001 |
—
|
—
|
—
|
—
|
—
|
5.03%
|
|
|
|
|
|
|
|
|
|
MLPF&S
FOR THE SOLE BENEFIT
OF
ITS CUSTOMERS
ATTN
FUND ADMN
4800
DEER LAKE DR E FL 3
JACKSONVILLE
FL 32246-6484 |
—
|
—
|
—
|
—
|
—
|
13.09%
|
|
|
|
|
|
|
|
|
|
MORGAN
STANLEY SMITH BARNEY LLC
FOR
THE EXCLUSIVE FBO ITS
CUSTOMERS
1
NEW YORK PLAZA FL 12
NEW
YORK NY 10004-1965 |
—
|
—
|
—
|
5.03%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FEBO
CUSTOMERS
MUTUAL
FUNDS
499
WASHINGTON BLVD FL 5
JERSEY
CITY NJ 07310-2010 |
—
|
—
|
—
|
—
|
56.07%
|
—
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FOR
EXCLUSIVE BEN OF CUSTOMERS
200
LIBERTY STREET
ONE
WORLD FINANCIAL CENTER
ATTN
MUTUAL FUNDS 5TH FLOOR
NEW
YORK NY 10281-1003 |
6.91%
|
7.69%
|
—
|
13.54%
|
—
|
12.37%
|
|
|
|
|
|
|
|
|
|
NATIONWIDE
TRUST COMPANY
C/O
IPO PORTFOLIO ACCOUNTING
PO
BOX 182029
COLUMBUS
OH 43218-2029 |
—
|
—
|
—
|
—
|
19.07%
|
—
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLAZA
JERSEY
CITY NJ 07399-0001 |
5.02%
|
—
|
—
|
16.77%
|
—
|
—
|
|
|
|
|
|
|
|
|
F-8
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
SPEC
CDY A/C EBOC UBSFSI
OMNI
ACCOUNT M/F
ATTN
DEPARTMENT MANAGER
1000
HARBOR BLVD
WEEHAWKEN
NJ 07086-6761 |
—
|
—
|
—
|
11.32%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
STATE
STREET BANK & TRUST
AS
TR & CUST
FBO
ADP ACCESS PRODUCT
1
LINCOLN ST
BOSTON
MA 02111-2900 |
—
|
—
|
6.16%
|
—
|
—
|
—
|
Invesco
Main Street Small Cap Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
BNY
MELLON INVESTMENT SERVICING INC
FBO
PRIMERICA FINANCIAL SERVICES
760
MOORE RD
KING
OF PRUSSIA PA 19406-1212 |
7.51%
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
DCGT
TRUSTEE & OR CUSTODIAN
FBO
PLIC VARIOUS RETIREMENT PLANS
OMNIBUS
ATTN
NPIO TRADE DESK
711
HIGH STREET
DES
MOINES IA 50392-0001 |
—
|
—
|
—
|
—
|
11.03%
|
—
|
|
|
|
|
|
|
|
|
|
FIIOC
FBO
WEST
HERR EMPLOYEES' RETIREMENT
PLAN
100
MAGELLAN WAY (KW1C)
COVINGTON
KY 41015-1987 |
—
|
—
|
—
|
—
|
53.59%
|
—
|
|
|
|
|
|
|
|
|
|
INVESCO
GROWTH ALLOCATION FUND
FUND
OMNIBUS ACCOUNT
KGHL
11
GREENWAY PLZ STE 2500
HOUSTON
TX 77046-1188 |
—
|
—
|
—
|
—
|
—
|
11.31%
|
|
|
|
|
|
|
|
|
|
JOHN
HANCOCK TRUST COMPANY LLC
690
CANTON ST STE 100
WESTWOOD
MA 02090-2324 |
—
|
—
|
—
|
—
|
10.41%
|
—
|
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
--OMNIBUS
CUSTOMER ACCOUNT--
ATTN
LINDSAY OTOOLE
4707
EXECUTIVE DRIVE
SAN
DIEGO CA 92121-3091 |
—
|
10.43%
|
—
|
80.65%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
MAC
& CO ACCT
ATTN
MUTUAL FUNDS OPERATION
500
GRANT STREET ROOM 151-1010
PITTSBURGH
PA 15219-2502 |
—
|
—
|
—
|
—
|
—
|
23.20%
|
|
|
|
|
|
|
|
|
|
MATRIX
TRUST COMPANY TRUSTEE FBO
EPLAN
SVCS GROUP TRUST
PO
BOX 52129
PHOENIX
AZ 85072-2129 |
—
|
—
|
—
|
—
|
6.03%
|
—
|
|
|
|
|
|
|
|
|
F-9
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
MORI
& CO
MAILSTOP
TBTS 2
922
WALNUT ST
KANSAS
CITY MO 64106-1802 |
—
|
—
|
—
|
—
|
—
|
5.18%
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FOR
EXCLUSIVE BEN OF CUSTOMERS
200
LIBERTY STREET
ONE
WORLD FINANCIAL CENTER
ATTN
MUTUAL FUNDS 5TH FLOOR
NEW
YORK NY 10281-1003 |
6.07%
|
7.45%
|
—
|
—
|
—
|
6.17%
|
|
|
|
|
|
|
|
|
|
OPPENHEIMER
PORTFOLIO SERIES
ACTIVE
ALLOCATION
ATTN:
CYNTHIA SMITH
11
GREENWAY PLAZA FL 16
HOUSTON
TX 77046-1100 |
—
|
—
|
—
|
—
|
—
|
23.03%
|
|
|
|
|
|
|
|
|
|
OPPENHEIMER
PORTFOLIO SERIES
GROWTH
INVESTOR FUND
ATTN:
CYNTHIA SMITH
11
GREENWAY PLAZA FL 16
HOUSTON
TX 77046-1100 |
—
|
—
|
—
|
—
|
—
|
11.22%
|
|
|
|
|
|
|
|
|
|
OPPENHEIMER
PORTFOLIO SERIES
MODERATE
INVESTOR
ATTN
CYNTHIA SMITH
11
GREENWAY PLZ FL 16
HOUSTON
TX 77046-1100 |
—
|
—
|
—
|
—
|
—
|
13.31%
|
|
|
|
|
|
|
|
|
|
SAMMONS
FINANCIAL NETWORK
4546
CORPORATE DR STE 100
WEST
DES MOINES IA 50266-5911 |
—
|
—
|
13.15%
|
—
|
—
|
—
|
Invesco
Quality Income Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
AMERICAN
ENTERPRISE INV SVC
707
2ND AVE S
MINNEAPOLIS
MN 55402-2405 |
—
|
—
|
—
|
19.03%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
BNY
MELLON INVESTMENT SERVICING INC
FBO
PRIMERICA FINANCIAL SERVICES
760
MOORE RD
KING
OF PRUSSIA PA 19406-1212 |
5.42%
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
CHARLES
SCHWAB & CO INC
SPECIAL
CUSTODY ACCT FBO CUSTOMERS
ATTN
MUTUAL FUNDS
211
MAIN ST
SAN
FRANCISCO CA 94105-1901 |
—
|
—
|
—
|
5.07%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
EDWARD
D JONES & CO
FOR
THE BENEFIT OF CUSTOMERS
12555
MANCHESTER RD
SAINT
LOUIS MO 63131-3710 |
10.16%
|
—
|
—
|
—
|
—
|
88.81%
|
|
|
|
|
|
|
|
|
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
6.84%
|
—
|
F-10
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
OMNIBUS
CUSTOMER ACCOUNT
ATTN:
MUTUAL FUND TRADING
4707
EXECUTIVE DR
SAN
DIEGO CA 92121-3091 |
—
|
—
|
—
|
9.32%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
MERRILL
LYNCH PIERCE FENNER & SMITH
FBO
THE SOLE BENEFIT OF CUSTOMERS
ATTN:
FUND ADMINISTRATION
4800
DEER LAKE DR EAST 2ND FLOOR
JACKSONVILLE
FL 32246-6484 |
—
|
—
|
—
|
—
|
40.07%
|
—
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FEBO
CUSTOMERS
MUTUAL
FUNDS
499
WASHINGTON BLVD FL 5
JERSEY
CITY NJ 07310-2010 |
5.51%
|
—
|
—
|
26.04%
|
—
|
6.23%
|
|
|
|
|
|
|
|
|
|
NATIONWIDE
TRUST CO FSB FBO
PARTICIPATING
RET PL NTC-PLNS
C/O
IPO PORTFOLIO ACCOUNTING
PO
BOX 182029
COLUMBUS
OH 43218-2029 |
—
|
—
|
—
|
—
|
53.09%
|
—
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLAZA
JERSEY
CITY NJ 07399-0002 |
—
|
6.66%
|
—
|
7.79%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
SEI
PRIVATE TRUSTCO
C/O
NEWPORT ID 751
ONE
FREEDOM VALLEY DRIVE
OAKS
PA 19456-9989 |
—
|
—
|
—
|
7.77%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
WELLS
FARGO CLEARING SERVICES LLC
SPECIAL
CUSTODY ACCT FOR THE
EXCLUSIVE
BENEFIT OF CUSTOMER
2801
MARKET ST
SAINT
LOUIS MO 63103-2523 |
—
|
—
|
—
|
9.02%
|
—
|
—
|
Invesco
Select Risk: Conservative Investor Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
ASCENSUS
TRUST CO FBO
ROSEMAR
CONSTRUCTION INC 401(K)
PO
BOX 10758
FARGO
ND 58106-0758 |
—
|
—
|
7.59%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
EDWARD
D JONES & CO
FBO
CUSTOMERS
12555
MANCHESTER RD
ST
LOUIS MO 63131-3710 |
13.31%
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
100.00%*
|
100.00%*
|
|
|
|
|
|
|
|
|
F-11
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
LPL
FINANCIAL
--OMNIBUS
CUSTOMER ACCOUNT--
ATTN
LINDSAY OTOOLE
4707
EXECUTIVE DRIVE
SAN
DIEGO CA 92121-3091 |
—
|
—
|
—
|
9.14%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
MID
ATLANTIC TRUST COMPANY FBO
WALDAN
PAPER SERVICES, INC. 401(K)
1251
WATERFRONT PLACE, SUITE 525
PITTSBURGH
PA 15222-4228 |
—
|
—
|
—
|
9.67%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FOR
EXCLUSIVE BEN OF CUSTOMERS
200
LIBERTY STREET
ONE
WORLD FINANCIAL CENTER
ATTN
MUTUAL FUNDS 5TH FLOOR
NEW
YORK NY 10281-1003 |
—
|
—
|
—
|
9.97%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLAZA
JERSEY
CITY NJ 07399-0001 |
—
|
—
|
—
|
30.31%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
RAYMOND
JAMES
OMNIBUS
FOR MUTUAL FUNDS
HOUSE
A/C
ATTN
COURTNEY WALLER
880
CARILLON PARKWAY
ST
PETERSBURG FL 33716-1102 |
—
|
—
|
—
|
6.88%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
WELLS
FARGO CLEARING SVCS LLC
SPECIAL
CUSTODY A/C FOR THE
EXCLUSIVE
FBO CUSTOMER
2801
MARKET STREET
ST
LOUIS MO 63103-2523 |
—
|
—
|
—
|
6.33%
|
—
|
—
|
Invesco
Select Risk: Growth Investor Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||||
|
|
Class
A |
Class
C |
Class
R |
Class
S |
Class
Y |
Class
R5 |
Class
R6 |
|
ASCENSUS
TRUSTCO FBO
HOLDER
& JACOBS PC 401K
P
O BOX 10758
FARGO
ND 58106-0758 |
—
|
—
|
—
|
—
|
—
|
74.94%
|
—
|
|
|
|
|
|
|
|
|
|
|
BNY
MELLON INVESTMENT SERVICING INC
FBO
PRIMERICA FINANCIAL SERVICES
760
MOORE RD
KING
OF PRUSSIA PA 19406-1212 |
17.50%
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
CHARLES
SCHWAB & CO INC
SPECIAL
CUSTODY A/C
FBO
CUSTOMERS
ATTN
MUTUAL FUNDS
211
MAIN ST
SAN
FRANCISCO CA 94105-1901 |
—
|
—
|
—
|
—
|
—
|
—
|
6.90%
|
|
|
|
|
|
|
|
|
|
|
EDWARD
D JONES & CO
FOR
THE BENEFIT OF CUSTOMERS
12555
MANCHESTER RD
SAINT
LOUIS MO 63131-3710 |
19.17%
|
9.11%
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
F-12
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||||
|
|
Class
A |
Class
C |
Class
R |
Class
S |
Class
Y |
Class
R5 |
Class
R6 |
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
—
|
25.06%
|
—
|
|
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
OMNIBUS
CUSTOMER ACCOUNT
ATTN:
MUTUAL FUND TRADING
4707
EXECUTIVE DR
SAN
DIEGO CA 92121-3091 |
—
|
—
|
—
|
—
|
9.18%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
MORGAN
STANLEY SMITH BARNEY LLC
FOR
EXCLUSIVE BENEFIT OF CUSTOMERS
1
NEW YORK PLZ FL 12
NEW
YORK NY 10004-1965 |
—
|
—
|
—
|
—
|
8.56%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FEBO
CUSTOMERS
MUTUAL
FUNDS
499
WASHINGTON BLVD FL 5
JERSEY
CITY NJ 07310-2010 |
—
|
—
|
—
|
—
|
11.58%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
PAI
TRUSTCO INC
GA
PLASTIC SURGERY SPECIALISTS PC
401K
1300
ENTERPRISE DRIVE
DE
PERE WI 54115-4934 |
—
|
—
|
—
|
—
|
—
|
—
|
8.03%
|
|
|
|
|
|
|
|
|
|
|
PAI
TRUSTCO INC
PAI
TRUST OMNIBUS
1300
ENTERPRISE DRIVE
DE
PERE WI 54115-4934 |
—
|
—
|
—
|
—
|
—
|
—
|
66.02%
|
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLZ
JERSEY
CITY NJ 07399-0001 |
—
|
—
|
—
|
—
|
9.03%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
RAYMOND
JAMES
OMNIBUS
FOR MUTUAL FUNDS
ATTN
COURTNEY WALLER
880
CARILLON PKWY
ST
PETERSBURG FL 33716-1102 |
—
|
—
|
—
|
—
|
14.48%
|
—
|
—
|
Invesco
Select Risk: High Growth Investor Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
100.00%*
|
47.21%
|
|
|
|
|
|
|
|
|
|
JP
MORGAN SECURITIES LLC
FOR
THE EXCLUSIVE BENEFIT OF
OUR
CUSTOMERS
4
CHASE METROTECH CTR
BROOKLYN
NY 11245-0001 |
—
|
—
|
—
|
—
|
—
|
45.27%
|
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
--OMNIBUS
CUSTOMER ACCOUNT--
ATTN
LINDSAY OTOOLE
4707
EXECUTIVE DRIVE
SAN
DIEGO CA 92121-3091 |
—
|
—
|
—
|
17.10%
|
—
|
—
|
|
|
|
|
|
|
|
|
F-13
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | |||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 |
Class
R6 |
|
NATIONAL
FINANCIAL SERVICES LLC
FOR
EXCLUSIVE BEN OF CUSTOMERS
200
LIBERTY STREET
ONE
WORLD FINANCIAL CENTER
ATTN
MUTUAL FUNDS 5TH FLOOR
NEW
YORK NY 10281-1003 |
—
|
—
|
—
|
12.98%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLAZA
JERSEY
CITY NJ 07399-0001 |
—
|
—
|
—
|
9.01%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
PO
BOX 2052
JERSEY
CITY NJ 07303-2052 |
—
|
—
|
—
|
—
|
—
|
7.53%
|
|
|
|
|
|
|
|
|
|
WELLS
FARGO CLEARING SVCS LLC
SPECIAL
CUSTODY A/C FOR THE
EXCLUSIVE
FBO CUSTOMER
2801
MARKET STREET
ST
LOUIS MO 63103-2523 |
—
|
—
|
—
|
6.18%
|
—
|
—
|
Invesco
Select Risk: Moderate Investor Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||||
|
|
Class
A |
Class
C |
Class
R |
Class
S |
Class
Y |
Class
R5 |
Class
R6 |
|
ASCENSUS
TRUSTCO FBO
CBSI
EMPLOYEE RETPLAN SAVINGS
P
O BOX 10758
FARGO
ND 58106-0758 |
—
|
—
|
—
|
—
|
7.01%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
CHARLES
SCHWAB & CO INC
SPECIAL
CUSTODY A/C
FBO
CUSTOMERS
ATTN
MUTUAL FUNDS
211
MAIN ST
SAN
FRANCISCO CA 94105-1901 |
—
|
—
|
—
|
—
|
—
|
—
|
5.81%
|
|
|
|
|
|
|
|
|
|
|
EDWARD
D JONES & CO
FBO
CUSTOMERS
12555
MANCHESTER RD
ST
LOUIS MO 63131-3710 |
11.93%
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
—
|
100.00%*
|
—
|
|
|
|
|
|
|
|
|
|
|
LINCOLN
INVESTMENT PLANNING, LLC
FBO
LINCOLN CUSTOMERS
601
OFFICE CENTER DR STE 300
FT
WASHINGTON PA 19034-3275 |
—
|
—
|
—
|
—
|
6.38%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
--OMNIBUS
CUSTOMER ACCOUNT--
ATTN
LINDSAY OTOOLE
4707
EXECUTIVE DRIVE
SAN
DIEGO CA 92121-3091 |
—
|
—
|
—
|
—
|
6.91%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
F-14
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||||
|
|
Class
A |
Class
C |
Class
R |
Class
S |
Class
Y |
Class
R5 |
Class
R6 |
|
NATIONAL
FINANCIAL SERVICES LLC
FOR
EXCLUSIVE BEN OF CUSTOMERS
200
LIBERTY STREET
ONE
WORLD FINANCIAL CENTER
ATTN
MUTUAL FUNDS 5TH FLOOR
NEW
YORK NY 10281-1003 |
—
|
—
|
—
|
—
|
11.63%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
PAI
TRUSTCO INC
GA
PLASTIC SURGERY SPECIALISTS PC
401K
1300
ENTERPRISE DRIVE
DE
PERE WI 54115-4934 |
—
|
—
|
—
|
—
|
—
|
—
|
80.98%
|
|
|
|
|
|
|
|
|
|
|
PAI
TRUSTCO INC
MEDICAL
PLUS SUPPLIES INC 401K
1300
ENTERPRISE DRIVE
DE
PERE WI 54115-4934 |
—
|
—
|
—
|
—
|
—
|
—
|
6.50%
|
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLAZA
JERSEY
CITY NJ 07399-0001 |
—
|
—
|
—
|
—
|
26.82%
|
—
|
—
|
Invesco
Select Risk: Moderately Conservative Investor Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||||
|
|
Class
A |
Class
C |
Class
R |
Class
S |
Class
Y |
Class
R5 |
Class
R6 |
|
ASCENSUS
TRUST COMPANY FBO
ORTHOPAEDIC
ASSOCIATES, INC.
ASCENSUS
TRUST COMPANY
PO
BOX 10577
FARGO
ND 58106-0577 |
—
|
—
|
11.34%
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
BNY
MELLON INVESTMENT SERVICING INC
FBO
PRIMERICA FINANCIAL SERVICES
760
MOORE RD
KING
OF PRUSSIA PA 19406-1212 |
7.43%
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
CHARLES
SCHWAB & CO INC
SPECIAL
CUSTODY A/C
FBO
CUSTOMERS
ATTN
MUTUAL FUNDS
211
MAIN ST
SAN
FRANCISCO CA 94105-1901 |
—
|
—
|
—
|
—
|
—
|
—
|
28.53%
|
|
|
|
|
|
|
|
|
|
|
DAVID
M CASSTEVENS &
ELIZABETH
A CASSTEVENS TTEES
DAVID
M & ELIZABETH A CASSTEVENS
FT
WALTON BCH FL |
—
|
—
|
—
|
8.19%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
EDWARD
D JONES & CO
FOR
THE BENEFIT OF CUSTOMERS
12555
MANCHESTER RD
SAINT
LOUIS MO 63131-3710 |
32.57%
|
20.20%
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
EMPOWER
TRUST COMPANY LLC
CRANE
INDEPENDENT SCHOOL
DISTRICT
P
C/O
FASCORE LLC
8515
E ORCHARD RD 2T2
GREENWOOD
VILLAGE CO 80111-5002 |
—
|
—
|
—
|
—
|
—
|
—
|
5.18%
|
F-15
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||||
|
|
Class
A |
Class
C |
Class
R |
Class
S |
Class
Y |
Class
R5 |
Class
R6 |
|
|
|
|
|
|
|
|
|
|
EMPOWER
TRUST COMPANY LLC
CRANE
INDEPENDENT SD NON
ERISA
403B
C/O
FASCORE LLC
8515
E ORCHARD RD 2T2
GREENWOOD
VILLAGE CO 80111-5002 |
—
|
—
|
—
|
—
|
—
|
—
|
8.19%
|
|
|
|
|
|
|
|
|
|
|
GETTY
J GEORGE III &
LORI
L GEORGE TTEES
THE
GEORGE FAMILY LIVING TRUST UA
RIVERSIDE
CA |
—
|
—
|
—
|
32.72%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
INVESCO
ADVISERS INC
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
—
|
10.43%
|
—
|
|
|
|
|
|
|
|
|
|
|
INVESCO
FOUNDATION INC.
ATLANTA
GA 30309 |
—
|
—
|
—
|
—
|
58.45%
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
ITC
CUST IRA
FBO
SHIRLEY A JENSEN
NICEVILLE
FL |
—
|
—
|
—
|
6.36%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
ITC
EAST
WHITTIER CITY SD
TAMARA
HARDY
WHITTIER
CA |
—
|
—
|
7.51%
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
MARGARET
M MENNIE & THOMAS L MENNIE
TTEES
MENNIE FAMILY TRUST
SCOTTSDALE
AZ |
—
|
—
|
—
|
6.19%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
PAI
TRUSTCO INC
PAI
TRUST OMNIBUS
1300
ENTERPRISE DRIVE
DE
PERE WI 54115-4934 |
—
|
—
|
—
|
—
|
—
|
—
|
52.99%
|
|
|
|
|
|
|
|
|
|
|
PAI
TRUSTCO INC
WANNEMACHER
JENSEN ARCHITECTS INC
1300
ENTERPRISE DRIVE
DE
PERE WI 54115-4934 |
—
|
—
|
—
|
—
|
—
|
89.57%
|
—
|
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLZ
JERSEY
CITY NJ 07399-0001 |
—
|
—
|
—
|
—
|
17.98%
|
—
|
—
|
Invesco
Small Cap Growth Fund
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Investor
Class |
Class
R5 |
Class
R6 |
|
AMERICAN
ENTERPRISE INVESTMENT SVC
707
2ND AVE S
MINNEAPOLIS
MN 55402-2405 |
—
|
5.39%
|
—
|
15.37%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
BNY
MELLON INVESTMENT SERVICING INC
FBO
PRIMERICA FINANCIAL SERVICES
760
MOORE RD
KING
OF PRUSSIA PA 19406-1212 |
9.50%
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
F-16
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Investor
Class |
Class
R5 |
Class
R6 |
|
CHARLES
SCHWAB & CO INC
SPECIAL
CUSTODY ACCT FBO CUSTOMERS
ATTN
MUTUAL FUNDS
211
MAIN ST
SAN
FRANCISCO CA 94105-1901 |
—
|
—
|
—
|
—
|
10.13%
|
8.13%
|
9.80%
|
|
|
|
|
|
|
|
|
|
|
DCGT
TRUSTEE & OR CUSTODIAN
FBO
PLIC VARIOUS RETIREMENT PLANS
OMNIBUS
ATTN
NPIO TRADE DESK
711
HIGH ST
DES
MOINES IA 50392-0001 |
—
|
—
|
—
|
—
|
—
|
7.76%
|
—
|
|
|
|
|
|
|
|
|
|
|
EDWARD
D JONES & CO
FOR
THE BENEFIT OF CUSTOMERS
12555
MANCHESTER RD
SAINT
LOUIS MO 63131-3710 |
7.10%
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
EMPOWER
TRUST COMPANY LLC
CLIFTON
LARSON ALLEN
WEALTH
ADVISORS
8525
E ORCHARD RD
GREENWOOD
VLG CO 80111-5002 |
—
|
—
|
—
|
—
|
—
|
—
|
5.31%
|
|
|
|
|
|
|
|
|
|
|
JOHN
HANCOCK LIFE INSURANCE
COMPANY
USA
RPS-
TRADING OPS
200
BERKELEY ST FL 3
BOSTON
MA 02116-5030 |
—
|
—
|
—
|
—
|
—
|
30.94%
|
—
|
|
|
|
|
|
|
|
|
|
|
LPL
FINANCIAL
OMNIBUS
CUSTOMER ACCOUNT
ATTN:
MUTUAL FUND TRADING
4707
EXECUTIVE DR
SAN
DIEGO CA 92121-3091 |
—
|
6.83%
|
—
|
5.82%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
MASSACHUSETTS
MUTUAL INSURANCE CO
1295
STATE STREET MIP M200-INVST
SPRINGFIELD
MA 01111-0001 |
—
|
—
|
—
|
—
|
—
|
—
|
7.29%
|
|
|
|
|
|
|
|
|
|
|
MASSACHUSETTS
MUTUAL LIFE INS CO
MIP
M200-INVST
1295
STATE ST
SPRINGFIELD
MA 01111-0001 |
—
|
—
|
35.08%
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
NATIONAL
FINANCIAL SERVICES LLC
FEBO
CUSTOMERS
MUTUAL
FUNDS
499
WASHINGTON BLVD FL 5
JERSEY
CITY NJ 07310-2010 |
10.59%
|
6.27%
|
—
|
32.51%
|
6.96%
|
15.14%
|
35.45%
|
|
|
|
|
|
|
|
|
|
|
PERSHING
LLC
1
PERSHING PLZ
JERSEY
CITY NJ 07399-0001 |
—
|
7.29%
|
—
|
8.37%
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
TALCOTT
RESOLUTION LIFE INS CO
ACCOUNT
401K
PO
BOX 5051
HARTFORD
CT 06102-5051 |
—
|
—
|
38.01%
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
F-17
|
Name
and Address
of
Principal Holder |
Percentage
Owned of Record | ||||||
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Investor
Class |
Class
R5 |
Class
R6 |
|
TALCOTT
RESOLUTION LIFE INS CO
SEPARATE
ACCOUNT 401K
PO
BOX 5051
HARTFORD
CT 06102-5051 |
5.53%
|
—
|
—
|
—
|
11.55%
|
—
|
—
|
*Owned
beneficially and of record
Management
Ownership
As
of April 3,
2023, the trustees and officers as a group owned less than 1% of the outstanding shares of each class of each Fund.
F-18
APPENDIX
G - MANAGEMENT FEES
For
the last three fiscal years or periods, as applicable, ended December 31, the management fees payable
by each Fund, the amounts waived by Invesco and the net fees paid by each Fund were as follows:
|
|
2022
|
2021
|
2020
| ||||||
|
|
Management
Fee
Payable |
Management
Fee
Waivers |
Net
Management
Fee
Paid |
Management
Fee
Payable |
Management
Fee
Waivers |
Net
Management
Fee
Paid |
Management
Fee
Payable |
Management
Fee
Waivers |
Net
Management
Fee
Paid |
|
Invesco
Active
Allocation
Fund |
$1,688,038
|
$(6,920)
|
$1,681,118
|
$2,110,052
|
$(2,308)
|
$2,107,744
|
$1,851,028
|
$(6,363)
|
$1,844,665
|
|
Invesco
Convertible
Securities
Fund |
5,504,917
|
(54,108)
|
5,450,809
|
6,797,314
|
(16,830)
|
6,780,484
|
5,874,034
|
(39,111)
|
5,834,923
|
|
Invesco
Income
Advantage
International
Fund
|
463,299
|
(231,176)
|
232,123
|
555,255
|
(85,936)
|
469,319
|
563,306
|
(1,137)
|
562,169
|
|
Invesco
Main Street
Mid
Cap Fund®
|
15,704,705
|
(10,143)
|
15,694,562
|
18,214,071
|
(28,495)
|
18,185,576
|
13,817,064
|
(389,997)
|
13,427,067
|
|
Invesco
Main Street
Small
Cap Fund®
|
9,839,797
|
(23,112)
|
9,816,685
|
9,782,700
|
(8,776)
|
9,773,924
|
4,985,812
|
(202,282)
|
4,783,530
|
|
Invesco
Quality Income
Fund
|
3,106,827
|
(6,638)
|
3,100,189
|
4,111,114
|
(242,356)
|
3,868,758
|
4,084,411
|
(304,603)
|
3,779,808
|
|
Invesco
Small Cap
Growth
Fund |
18,252,588
|
(73,683)
|
18,178,905
|
28,403,172
|
(26,604)
|
28,376,568
|
19,949,690
|
(48,114)
|
19,901,576
|
|
|
|
|
|
|
|
|
|
|
|
G-1
APPENDIX
H - PORTFOLIO MANAGER(S)
Portfolio
Manager Fund Holdings and Information on Other Managed Accounts
Invesco’s
portfolio managers develop investment models which are used in connection with the management
of certain Invesco Funds as well as other mutual funds for which Invesco or an affiliate acts as sub-adviser, other pooled investment
vehicles that are not registered mutual funds, and other accounts managed for organizations and individuals. The ‘Investments’
chart reflects the portfolio managers' investments in the Fund(s) that they manage and includes investments in the Fund’s shares
beneficially owned by a portfolio manager, as determined in accordance with Rule 16a-1(a)(2) under the Securities Exchange Act of 1934,
as amended (beneficial ownership includes ownership by a portfolio manager’s immediate family members sharing the same household).
The ‘Assets Managed’ chart reflects information regarding accounts other than the Funds for which each portfolio manager
has day-to-day management responsibilities. Accounts are grouped into three categories: (i) other registered investment companies;
(ii) other pooled investment vehicles; and (iii) other accounts. To the extent that any of these accounts pay advisory fees that
are based on account performance (performance-based fees), information on those accounts is specifically noted. In addition, any
assets denominated in foreign currencies have been converted into U.S. dollars using the exchange rates as of the applicable date.
Investments
The
following information is as of December 31, 2022 (unless otherwise
noted):
|
Fund
|
Portfolio
Managers
|
Dollar
Range of
Investments
in the Fund |
|
Invesco
Active Allocation Fund | ||
|
|
Jeffrey
Bennett |
$10,001–$50,000
|
|
|
Alessio
de Longis |
None
|
|
|
Scott
Hixon1
|
None
|
|
|
|
|
|
Invesco
Convertible Securities Fund | ||
|
|
Ellen
Gold |
$10,001–$50,000
|
|
|
Ramez
Nashed |
$10,001–$50,000
|
|
|
|
|
|
Invesco
Income Advantage International Fund | ||
|
|
Mark
Ahnrud |
$100,001-$500,000
|
|
|
John
Burrello |
$100,001-$500,000
|
|
|
Chris
Devine |
None
|
|
|
Scott
Hixon |
$100,001-$500,000
|
|
|
Christian
Ulrich |
$100,001-$500,000
|
|
|
Scott
Wolle |
$50,001–$100,000
|
|
|
|
|
|
Invesco
Income Allocation Fund | ||
|
|
Alessio
de Longis1
|
None
|
|
|
Jeffrey
Bennett |
None
|
|
|
|
|
|
Invesco
International Diversified
Fund
|
|
|
|
|
George
R. Evans |
None
|
|
|
Robert
B. Dunphy2
|
None
|
|
|
|
|
|
Invesco
Main Street Mid Cap Fund®
| ||
|
|
Joy
Budzinski |
None
|
|
|
Belinda
Cavazos |
$100,001-$500,000
|
|
|
Magnus
Krantz |
None
|
H-1
|
Fund
|
Portfolio
Managers
|
Dollar
Range of
Investments
in the Fund |
|
|
Raman
Vardharaj |
None
|
|
|
Adam
Weiner |
$100,001–$500,000
|
|
|
Matthew
Ziehl |
$100,001–$500,000
|
|
|
|
|
|
Invesco
Main Street Small Cap Fund®
| ||
|
|
Joy
Budzinski |
None
|
|
|
Magnus
Krantz |
None
|
|
|
Raman
Vardharaj |
None
|
|
|
Adam
Weiner |
$100,001–$500,000
|
|
|
Matthew
Ziehl |
$500,001–$1,000,000
|
|
|
|
|
|
Invesco
Quality Income Fund | ||
|
|
Mario
Clemente |
None
|
|
|
Clint
Dudley |
$50,001–$100,000
|
|
|
Brian
Norris |
$10,001–$50,000
|
|
|
|
|
|
Invesco
Select Risk: Conservative Investor Fund | ||
|
|
Jeffrey
Bennett |
None
|
|
|
Alessio
de Longis1
|
None
|
|
|
Scott
Hixon1
|
None
|
|
|
|
|
|
Invesco
Select Risk: Growth Investor Fund | ||
|
|
Jeffrey
Bennett |
None
|
|
|
Alessio
de Longis1
|
None
|
|
|
Scott
Hixon1
|
None
|
|
|
|
|
|
Invesco
Select Risk: High Growth Investor Fund | ||
|
|
Jeffrey
Bennett |
None
|
|
|
Alessio
de Longis1
|
None
|
|
|
Scott
Hixon1
|
None
|
|
|
|
|
|
Invesco
Select Risk: Moderate Investor Fund | ||
|
|
Jeffrey
Bennett |
$100,001–$500,000
|
|
|
Alessio
de Longis1
|
None
|
|
|
Scott
Hixon1
|
None
|
|
|
|
|
|
Invesco
Select Risk: Moderately Conservative Investor Fund | ||
|
|
Jeffrey
Bennett |
None
|
|
|
Alessio
de Longis1
|
None
|
|
|
Scott
Hixon1
|
None
|
|
|
|
|
|
Invesco
Small Cap Growth Fund | ||
|
|
Juan
Hartsfield |
Over
$1,000,000 |
|
|
Clay
Manley |
$500,001–$1,000,000
|
|
|
Justin
Sander |
$500,001–$1,000,000
|
H-2
|
Fund
|
Portfolio
Managers
|
Dollar
Range of
Investments
in the Fund |
|
1 The
Portfolio Manager began serving on the Fund effective March 28, 2023. All information is provided as of March 31, 2023.
2 The
Portfolio Manager began serving on the Fund effective February 28, 2023. All information is provided as of February 28, 2023.
| ||
Assets
Managed
The
following information is as of December 31, 2022 (unless otherwise
noted):
H-3
|
Portfolio
Manager(s) |
Other
Registered
Investment
Companies
Managed
|
Other
Pooled
Investment
Vehicles
Managed
|
Other
Accounts
Managed
| |||
|
|
|
|
|
|
|
|
|
Invesco
Select Risk: Conservative Investor Fund | ||||||
|
Jeffrey
Bennett |
23
|
$6,117.3
|
1
|
$1.8
|
4,2493
|
$77.83
|
|
Alessio
de Longis4
|
11
|
$2,983.4
|
1
|
$6.1
|
None
|
None
|
|
Scott
Hixon4
|
10
|
$6,649.3
|
16
|
$1,365.8
|
None
|
None
|
|
|
|
|
|
|
|
|
|
Invesco
Select Risk: Growth Investor Fund | ||||||
|
Jeffrey
Bennett |
23
|
$5,608.0
|
1
|
$1.8
|
4,2493
|
$77.83
|
|
Alessio
de Longis4
|
11
|
$2,983.4
|
1
|
$6.1
|
None
|
None
|
|
Scott
Hixon4
|
10
|
$6,649.3
|
16
|
$1,365.8
|
None
|
None
|
|
|
|
|
|
|
|
|
|
Invesco
Select Risk: High Growth Investor Fund | ||||||
|
Jeffrey
Bennett |
23
|
$5,762.1
|
1
|
$1.8
|
4,2493
|
$77.83
|
|
Alessio
de Longis4
|
11
|
$2,983.4
|
1
|
$6.1
|
None
|
None
|
|
Scott
Hixon4
|
10
|
$6,649.3
|
16
|
$1,365.8
|
None
|
None
|
|
|
|
|
|
|
|
|
|
Invesco
Select Risk: Moderate Investor Fund | ||||||
|
Jeffrey
Bennett |
23
|
$4,752.2
|
1
|
$1.8
|
4,2493
|
$77.83
|
|
Alessio
de Longis4
|
11
|
$2,983.4
|
1
|
$6.1
|
None
|
None
|
|
Scott
Hixon4
|
10
|
$6,649.3
|
16
|
$1,365.8
|
None
|
None
|
|
|
|
|
|
|
|
|
|
Invesco
Select Risk: Moderately Conservative Investor Fund | ||||||
|
Jeffrey
Bennett |
23
|
$6,197.0
|
1
|
$1.8
|
4,2493
|
$77.83
|
|
Alessio
de Longis4
|
11
|
$2,983.4
|
1
|
$6.1
|
None
|
None
|
|
Scott
Hixon4
|
10
|
$6,649.3
|
16
|
$1,365.8
|
None
|
None
|
|
|
|
|
|
|
|
|
|
Invesco
Small Cap Growth Fund | ||||||
|
Juan
Hartsfield |
7
|
$4,068.6
|
1
|
$2,227.8
|
1
|
$20.8
|
|
Clay
Manley |
5
|
$3,018.6
|
None
|
None
|
None
|
None
|
|
Justin
Sander |
2
|
$1,817.0
|
None
|
None
|
None
|
None
|
|
|
|
|
|
|
|
|
|
2
The Portfolio Manager began serving on the Fund effective February 28, 2023. All information is provided as of February 28, 2023.
3
These are accounts of individual investors for which Invesco provides investment advice. Invesco offers separately managed accounts that
are managed according
to
the investment models developed by its portfolio managers and used in connection with the management of certain Invesco Funds. These accounts
may be
invested
in accordance with one or more of those investment models and investments held in those accounts are traded in accordance with the applicable
models.
4
The Portfolio Manager began serving on the Fund effective March 28, 2023. All information is provided as of December 31, 2022.
| ||||||
Potential
Conflicts of Interest
Actual
or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities
with respect to more than one Fund or other account. More specifically, portfolio managers who manage multiple Funds and/or other accounts
may be presented with one or more of the following potential conflicts:
•
The
management of multiple Funds and/or other accounts may result in a portfolio manager devoting unequal time and attention to the management
of each Fund and/or other account. The Adviser and each Sub-Adviser seek to manage such competing interests for the time and attention
of portfolio managers by having portfolio managers focus on a particular investment discipline. Most other accounts managed by a portfolio
manager are managed using the same investment models that are used in connection with the management of the Funds.
•
If
a portfolio manager identifies a limited investment opportunity which may be suitable for more than one Fund or other account, a Fund
may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible
Funds and other accounts. To deal with these situations, the Adviser, each Sub-Adviser and the Funds have adopted procedures for allocating
portfolio transactions across multiple accounts.
H-4
•
The
Adviser and each Sub-Adviser determine which broker to use to execute each order for securities transactions for the Funds, consistent
with its duty to seek best execution of the transaction. However, for certain other accounts (such as mutual funds for which Invesco or
an affiliate acts as sub-adviser, other pooled investment vehicles that are not registered mutual funds, and other accounts managed for
organizations and individuals), the Adviser and each Sub-Adviser may be limited by the client with respect to the selection of brokers
or may be instructed to direct trades through a particular broker. In these cases, trades for a Fund in a particular security may be placed
separately from, rather than aggregated with, such other accounts. Having separate transactions with respect to a security may temporarily
affect the market price of the security or the execution of the transaction, or both, to the possible detriment of the Fund or other account(s)
involved.
•
Finally,
the appearance of a conflict of interest may arise where the Adviser or Sub-Adviser has an incentive, such as a performance-based management
fee, which relates to the management of one Fund or account but not all Funds and accounts for which a portfolio manager has day-to-day
management responsibilities. None of the Invesco Fund accounts managed have a performance-based fee.
The
Adviser, each Sub-Adviser, and the Funds have adopted certain compliance procedures which are designed
to address these types of conflicts. However, there is no guarantee that such procedures will detect each and every situation in which
a conflict arises.
Description
of Compensation Structure
For
the Adviser and each Sub-Adviser
The
Adviser and each Sub-Adviser seek to maintain a compensation program that is competitively positioned
to attract and retain high-caliber investment professionals. Portfolio managers receive a base salary, an incentive cash bonus opportunity
and a deferred compensation opportunity. Portfolio manager compensation is reviewed and may be modified each year as appropriate to reflect
changes in the market, as well as to adjust the factors used to determine bonuses to promote competitive Fund performance. The Adviser
and each Sub-Adviser evaluate competitive market compensation by reviewing compensation survey results conducted by an independent third
party of investment industry compensation. Each portfolio manager's compensation consists of the following three elements:
Base
Salary. Each portfolio manager is paid a base salary. In setting
the base salary, the Adviser and each Sub-Adviser’s intention is to be competitive in light of the particular portfolio manager's
experience and responsibilities.
Annual
Bonus. The portfolio managers are eligible, along with other employees
of the Adviser and each Sub-Adviser, to participate in a discretionary year-end bonus pool. The Compensation Committee of Invesco Ltd.
reviews and approves the firm-wide bonus pool based upon progress against strategic objectives and annual operating plan, including investment
performance and financial results. In addition, while having no direct impact on individual bonuses, assets under management are considered
when determining the starting bonus funding levels. Each portfolio manager is eligible to receive an annual cash bonus which is based
on quantitative (i.e. investment performance) and non-quantitative factors (which may include, but are not limited to, individual performance,
risk management and teamwork).
H-5
Each
portfolio manager's compensation is linked to the pre-tax investment performance of the Funds/accounts
managed by the portfolio manager as described in Table 1 below.
High
investment performance (against applicable peer group and/or benchmarks) would deliver compensation
generally associated with top pay in the industry (determined by reference to the third-party provided compensation survey information)
and poor investment performance (versus applicable peer group) would result in low bonus compared to the applicable peer group or no bonus
at all. These decisions are reviewed and approved collectively by senior leadership which has responsibility for executing the compensation
approach across the organization.
With
respect to Invesco Capital, there is no policy regarding, or agreement with, the Portfolio Managers or any
other senior executive of the Adviser to receive bonuses or any other compensation in connection with the performance of any of the accounts
managed by the Portfolio Managers.
Deferred
/ Long Term Compensation. Portfolio managers may be granted a deferred
compensation award based on a firm-wide bonus pool approved by the Compensation Committee of Invesco Ltd. Deferred compensation awards
may take the form of annual deferral awards or long-term equity awards. Annual deferral awards may be granted as an annual stock deferral
award or an annual fund deferral award. Annual stock deferral awards are settled in Invesco Ltd. common shares. Annual fund deferral awards
are notionally invested in certain Invesco Funds selected by the Portfolio Manager and are settled in cash. Long-term equity awards are
settled in Invesco Ltd. common shares. Both annual deferral awards and long-term equity awards have a four-year ratable vesting schedule.
The vesting period aligns the interests of the Portfolio Managers with the long-term interests of clients and shareholders and encourages
retention.
Retirement
and health and welfare arrangements. Portfolio managers are eligible
to participate in retirement and health and welfare plans and programs that are available generally to all employees.
H-6
APPENDIX
I - ADMINISTRATIVE SERVICES FEES
The
Funds paid Invesco the following amounts for administrative services for the last three fiscal years or periods,
as applicable, ended December 31.
|
Fund
Name |
2022
|
2021
|
2020
|
|
Invesco
Active Allocation Fund |
$284,118
|
$344,099
|
$310,330
|
|
Invesco
Convertible Securities Fund |
157,595
|
204,934
|
165,368
|
|
Invesco
Income Advantage International Fund |
9,031
|
10,064
|
10,239
|
|
Invesco
Income Allocation Fund |
72,214
|
75,230
|
80,691
|
|
Invesco
Main Street Mid Cap Fund®
|
365,957
|
415,668
|
318,784
|
|
Invesco
Main Street Small Cap Fund®
|
221,407
|
213,892
|
103,191
|
|
Invesco
Quality Income Fund |
108,820
|
147,340
|
138,524
|
|
Invesco
Select Risk: Growth Investor Fund |
138,049
|
165,044
|
129,003
|
|
Invesco
Select Risk: Moderately Conservative Investor Fund |
48,114
|
51,646
|
45,413
|
|
Invesco
Small Cap Growth Fund |
400,436
|
623,747
|
400,351
|
|
|
|
|
|
I-1
APPENDIX
J - BROKERAGE COMMISSIONS AND COMMISSIONS ON AFFILIATED TRANSACTIONS
Set
forth below are brokerage commissions(1)
paid by each of the Funds listed below during the last three fiscal years or periods, as applicable, ended December 31. Unless otherwise
indicated, the amount of brokerage commissions paid by a Fund may change from year to year because of, among other things, changing asset
levels, shareholder activity, and/or portfolio turnover.
J-1
APPENDIX
K - DIRECTED BROKERAGE (RESEARCH SERVICES) AND PURCHASES OF SECURITIES OF
REGULAR BROKERS OR DEALERS
DIRECTED
BROKERAGE
During
the last fiscal year or period, as applicable, ended December 31,
2022, each Fund allocated the following amount of transactions to broker-dealers that provided the Adviser with certain research, statistics
and other information.
|
Fund
|
Transactions
|
Related1
Brokerage Commissions |
|
Invesco
Active Allocation Fund2
|
N/A
|
N/A
|
|
Invesco
Convertible Securities Fund |
$0
|
$0
|
|
Invesco
Income Advantage International Fund |
$0
|
$0
|
|
Invesco
Income Allocation Fund2
|
N/A
|
N/A
|
|
Invesco
International Diversified Fund2
|
N/A
|
N/A
|
|
Invesco
Main Street Mid Cap Fund®
|
$4,666,719,421
|
$1,778,798
|
|
Invesco
Main Street Small Cap Fund®
|
$1,785,209,187
|
$1,319,158
|
|
Invesco
Quality Income Fund |
$0
|
$0
|
|
Invesco
Select Risk: Conservative Investor Fund2
|
N/A
|
N/A
|
|
Invesco
Select Risk: Growth Investor Fund2
|
N/A
|
N/A
|
|
Invesco
Select Risk: High Growth Investor Fund2
|
N/A
|
N/A
|
|
Invesco
Select Risk: Moderate Investor Fund2
|
N/A
|
N/A
|
|
Invesco
Select Risk: Moderately Conservative Investor Fund2
|
N/A
|
N/A
|
|
Invesco
Small Cap Growth Fund |
$4,218,710,733
|
$1,900,675
|
|
|
|
|
|
1
Amount is inclusive of commissions paid to, and brokerage transactions placed with, certain brokers that provide execution, research
and
other services. | ||
|
2
This Fund is a fund of funds, and therefore does not allow transactions for research, statistics or other information. However, for such
data
for each of the underlying funds which comprise the subject fund of funds, please see the SAI of each underlying fund. | ||
REGULAR
BROKER-DEALERS
During
the fiscal year or periods, as applicable, ended December 31, 2022,
none of the Funds purchased securities of their “regular” brokers or dealers.
K-1
APPENDIX
L - PURCHASE, REDEMPTION,
EXCHANGE AND PRICING
OF SHARES
All
references in the following "Purchase, Redemption and Pricing of Shares" section of this SAI to Class A,
C and R shares shall include Class A2 and AX (except Invesco Government Money Market Fund) and Class CX shares, respectively, unless otherwise
noted. All references in the following "Purchase, Redemption and Pricing of Shares" section of this SAI to Invesco Cash Reserve Shares
of Invesco Government Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
The information contained in this section of the SAI does not apply to Invesco SMA High Yield Bond Fund and Invesco SMA Municipal Bond
Fund. For more information regarding those funds, please see their SAIs.
Transactions
through Financial Intermediaries
If
you are investing indirectly in an Invesco Fund through a financial intermediary such as a broker-dealer, a
bank (including a bank trust department), an insurance company separate account, an investment adviser, an administrator or trustee of
a Retirement and Benefit Plan or a qualified tuition plan or a sponsor of a fee-based program that maintains a master account (an omnibus
account) with the Invesco Fund for trading on behalf of its customers, different guidelines, conditions and restrictions may apply than
if you held your shares of the Invesco Fund directly. These differences may include, but are not limited to: (i) different eligibility
standards to purchase and sell shares, different eligibility standards to invest in Funds with limited offering status and different eligibility
standards to exchange shares by telephone; (ii) different minimum and maximum initial and subsequent purchase amounts; (iii) system inability
to provide Letter of Intent privileges; and (iv) different annual amounts (less than 12%) subject to withdrawal under a Systematic Redemption
Plan without being subject to a contingent deferred sales charge (CDSC). The financial intermediary through whom you are investing may
also choose to adopt different exchange and/or transfer limit guidelines and restrictions, including different trading restrictions designed
to discourage excessive or short-term trading.
If
the financial intermediary is managing your account, you may also be charged a transaction or other fee by
such financial intermediary, including service fees for handling redemption transactions. Consult with your financial intermediary (or,
in the case of a Retirement and Benefit Plan, your plan sponsor) to determine what fees, guidelines, conditions and restrictions, including
any of the above, may be applicable to you.
Unless
otherwise provided, the following are certain defined terms used throughout this prospectus:
•
Employer
Sponsored Retirement and Benefit Plans include (i) employer sponsored pension or profit sharing plans that qualify under Section 401(a)
of the Internal Revenue Code of 1986, as amended (the Code), including 401(k), money purchase pension, profit sharing and defined benefit
plans; (ii) 403(b) and non-qualified deferred compensation arrangements that operate similar to plans described under (i) above, such
as 457 plans and executive deferred compensation arrangements; (iii) health savings accounts maintained pursuant to Section 223 of the
Code; and (iv) voluntary employees' beneficiary arrangements maintained pursuant to Section 501(c)(9) of the Code.
•
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
•
Employer
Sponsored IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified Employee Pension (SAR-SEP), and Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE) IRAs.
•
Retirement
and Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and Employer Sponsored IRAs.
Purchase
and Redemption of Shares
Purchases
of Class A shares, Class A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco
Limited Term Municipal Income Fund, Class AX shares of Invesco Government Money Market Fund and Invesco Cash Reserve Shares of Invesco
Government Money Market Fund and Invesco U.S. Government Money Portfolio
L-1
Initial
Sales Charges. Each Invesco Fund (other than Invesco Conservative
Income Fund and Invesco Short Term Municipal Fund) is grouped into one of six categories to determine the applicable initial sales charge
for its Class A shares. The sales charge is used to compensate Invesco Distributors, Inc. (Invesco Distributors) and participating dealers
for their expenses incurred in connection with the distribution of the Invesco Funds' shares. You may also be charged a transaction or
other fee by the financial intermediary managing your account.
Class
A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund; Invesco Cash
Reserve Shares of Invesco U.S. Government Money Portfolio; and Class A shares and Invesco Cash Reserve Shares of Invesco Government Money
Market Fund, are sold without an initial sales charge.
Category
I Funds
Invesco
Advantage International Fund
Invesco
American Franchise Fund
Invesco
Balanced-Risk Allocation Fund
Invesco
Balanced-Risk Commodity Strategy Fund
Invesco
Capital Appreciation Fund
Invesco
Charter Fund
Invesco
Comstock Fund
Invesco
Comstock Select Fund
Invesco
Convertible Securities Fund
Invesco
Developing Markets Fund
Invesco
Discovery Fund
Invesco
Discovery Mid Cap Growth Fund
Invesco
Diversified Dividend Fund
Invesco
Dividend Income Fund
Invesco
Emerging Markets Innovators Fund
Invesco
Emerging Markets Select Equity Fund
Invesco
Energy Fund
Invesco
Equally-Weighted S&P 500 Fund
Invesco
Equity and Income Fund
Invesco
EQV Asia Pacific Equity Fund
Invesco
EQV Emerging Markets All Cap Fund
Invesco
EQV European Equity Fund
Invesco
EQV European Small Company Fund
Invesco
EQV International Equity Fund
Invesco
EQV International Small Company Fund
Invesco
Fundamental Alternatives Fund
Invesco
Global Allocation Fund
Invesco
Global Core Equity Fund
Invesco
Global Focus Fund
Invesco
Global Fund
Invesco
Global Infrastructure Fund
Invesco
Global Opportunities Fund
Invesco
Global Real Estate Fund
Invesco
Global Real Estate Income Fund
Invesco
Gold & Special Minerals Fund
Invesco
Greater China Fund
Invesco
Growth and Income Fund
Invesco
Health Care Fund
Invesco
Income Advantage International Fund
Invesco
Income Advantage U.S. Fund
Invesco
International Core Equity Fund
Invesco
International Diversified Fund
Invesco
International Equity Fund
Invesco
International Select Equity Fund
Invesco
International Small-Mid Company Fund
Invesco
Macro Allocation Strategy Fund
Invesco
Main Street All Cap Fund
Invesco
Main Street Fund
Invesco
Main Street Mid-Cap Fund
Invesco
Main Street Small Cap Fund
Invesco
MSCI World SRI Index Fund
Invesco
Multi-Asset Income Fund
Invesco
Oppenheimer International Growth Fund
Invesco
Real Estate Fund
Invesco
Rising Dividends Fund
Invesco
S&P 500 Index Fund
Invesco
Small Cap Equity Fund
Invesco
Small Cap Growth Fund
Invesco
Small Cap Value Fund
Invesco
SteelPath MLP Alpha Fund
Invesco
Steelpath MLP Alpha Plus Fund
Invesco
SteelPath MLP Income Fund
Invesco
SteelPath MLP Select 40 Fund
Invesco
Summit Fund
Invesco
Technology Fund
Invesco
Value Opportunities Fund
|
Amount
of Investment |
Investor’s
Sales Charge |
Dealer
Concession | |
|
|
As
a Percentage of the
Public
Offering Price |
As
a Percentage of the
Net
Amount Invested |
As
a Percentage of the
Net
Amount Invested |
|
Less
than $50,000 |
5.50%
|
5.82%
|
5.00%
|
|
$50,000
but less than $100,000 |
4.50%
|
4.71%
|
4.00%
|
|
$100,000
but less than $250,000 |
3.50%
|
3.63%
|
3.00%
|
|
$250,000
but less than $500,000 |
2.75%
|
2.83%
|
2.25%
|
|
$500,000
but less than $1,000,000 |
2.00%
|
2.04%
|
1.75%
|
Category
II Funds
Invesco
AMT-Free Municipal Income Fund
Invesco
California Municipal Fund
Invesco
Core Bond Fund
Invesco
Core Plus Bond Fund
L-2
Invesco
Corporate Bond Fund
Invesco
Emerging Markets Local Debt Fund
Invesco
Environmental Focus Municipal Fund
Invesco
Global Strategic Income Fund
Invesco
High Yield Bond Factor Fund
Invesco
High Yield Fund
Invesco
High Yield Municipal Fund
Invesco
Income Fund
Invesco
Intermediate Bond Factor Fund
Invesco
International Bond Fund
Invesco
Municipal Income Fund
Invesco
New Jersey Municipal Fund
Invesco
Pennsylvania Municipal Fund
Invesco
Quality Income Fund
Invesco
Rochester AMT-Free New York Municipal Fund
Invesco
Rochester Municipal Opportunities Fund
Invesco
Rochester New York Municipals Fund
Invesco
World Bond Factor Fund
|
Amount
of Investment |
Investor’s
Sales Charge |
Dealer
Concession | |
|
|
As
a Percentage of the
Public
Offering Price |
As
a Percentage of the
Net
Amount Invested |
As
a Percentage of the
Net
Amount Invested |
|
Less
than $100,000 |
4.25%
|
4.44%
|
4.00%
|
|
$100,000
but less than $250,000 |
3.50%
|
3.63%
|
3.25%
|
|
$250,000
but less than $500,000 |
2.50%
|
2.56%
|
2.25%
|
|
$500,000
but less than $1,000,000 |
2.00%
|
2.04%
|
1.75%
|
Category
III Funds
Invesco
Limited Term Municipal Income Fund (Class A2 shares)
Invesco
Short Duration Inflation Protected Fund (Class A2 shares)
|
Amount
of Investment |
Investor’s
Sales Charge |
Dealer
Concession | |
|
|
As
a Percentage of the
Public
Offering Price |
As
a Percentage of the
Net
Amount Invested |
As
a Percentage of the
Net
Amount Invested |
|
Less
than $100,000 |
1.00%
|
1.01%
|
0.75%
|
|
$100,000
but less than $250,000 |
0.75%
|
0.76%
|
0.50%
|
|
$250,000
but less than $1,000,000 |
0.50%
|
0.50%
|
0.40%
|
As
of the close of business on October 30, 2002, Class A2 shares of Invesco Short Duration Inflation Protected
Fund and Invesco Limited Term Municipal Income Fund were closed to new investors. Current investors must maintain a share balance in order
to continue to make incremental purchases.
Category
IV Funds
Invesco
Floating Rate ESG Fund
Invesco
Intermediate Term Municipal Income Fund
Invesco
Limited Term California Municipal Fund
Invesco
Limited Term Municipal Income Fund (Class A shares)
Invesco
Rochester Limited Term New York Municipal Fund
Invesco
Short Duration High Yield Municipal Fund
Invesco
Short Duration Inflation Protected Fund (Class A shares)
Invesco
Short Term Bond Fund
|
Amount
of Investment |
Investor’s
Sales Charge |
Dealer
Concession | |
|
|
As
a Percentage of the
Public
Offering Price |
As
a Percentage of the
Net
Amount Invested |
As
a Percentage of the
Net
Amount Invested |
|
Less
than $100,000 |
2.50%
|
2.56%
|
2.00%
|
|
$100,000
but less than $250,000 |
1.75%
|
1.78%
|
1.50%
|
L-3
Category
V Funds
Invesco
Senior Floating Rate Fund
|
Amount
of Investment |
Investor’s
Sales Charge |
Dealer
Concession | |
|
|
As
a Percentage of the
Public
Offering Price |
As
a Percentage of the
Net
Amount Invested |
As
a Percentage of the
Net
Amount Invested |
|
Less
than $100,000 |
3.25%
|
3.36%
|
3.00%
|
|
$100,000
but less than $250,000 |
2.75%
|
2.83%
|
2.50%
|
|
$250,000
but less than $500,000 |
1.75%
|
1.78%
|
1.50%
|
|
$500,000
but less than $1,000,000 |
1.50%
|
1.52%
|
1.25%
|
Category
VI Funds
Invesco
Active Allocation Fund
Invesco
Income Allocation Fund
Invesco
Select Risk: Conservative Investor Fund
Invesco
Select Risk: Growth Investor Fund
Invesco
Select Risk: High Growth Investor Fund
Invesco
Select Risk: Moderate Investor Fund
Invesco
Select Risk: Moderately Conservative Investor Fund
|
Amount
of Investment |
Investor’s
Sales Charge |
Dealer
Concession | |
|
|
As
a Percentage of the
Public
Offering Price |
As
a Percentage of the
Net
Amount Invested |
As
a Percentage of the
Net
Amount Invested |
|
Less
than $50,000 |
5.50%
|
5.82%
|
5.00%
|
|
$50,000
but less than $100,000 |
4.50%
|
4.71%
|
4.00%
|
|
$100,000
but less than $250,000 |
3.50%
|
3.63%
|
3.00%
|
Large
Purchases of Class A Shares. Investors who purchase $1,000,000
or more of Class A shares of Category I, II or V Funds do not pay an initial sales charge. Investors who purchase $250,000 or more of
Class A shares of Category IV or VI Funds do not pay an initial sales charge. In addition, investors who own Class A shares of Category
I, II or V Funds and make additional purchases that result in account balances of $1,000,000 or more and investors who own Class A shares
of Category IV or VI Funds and make additional purchases that result in account balances of $250,000 or more do not pay an initial sales
charge on the additional purchases. The additional purchases, as well as initial purchases of Class A shares of $1,000,000 or more (for
Category I, II and V) or $250,000 or more (for Category IV or VI Funds), are referred to as Large Purchases. If an investor makes a Large
Purchase of Class A shares of a Category I, II, IV, V or VI Fund, each share will generally be subject to a 1.00% CDSC if the investor
redeems those shares within 18 months after purchase.
Invesco
Distributors may pay a dealer concession and/or advance a service fee on Large Purchases of Class
A shares, as set forth below. Exchanges between the Invesco Funds may affect total compensation paid.
Payments
for Purchases of Class A Shares by Investors Other than Employer Sponsored Retirement
and Benefit Plans. Invesco Distributors may make the following
payments to dealers of record for Large Purchases of Class A shares of Category I, II, IV, V or VI Funds by investors other than Employer
Sponsored Retirement and Benefit Plans:
Percent
of Purchases – Categories I, II, IV, V and VI
•
1%
(0.50% for Invesco Short Duration Inflation Protected Fund and 0.75% for Invesco Limited Term Municipal Income Fund and Invesco Short
Term Bond Fund) of the first $4 million
•
plus
0.50% of the next $46 million
•
plus
0.25% of amounts in excess of $50 million
If
(i) the amount of any single purchase order plus (ii) the public offering price of all other shares owned by the
same customer submitting the purchase order on the day on which the purchase order is received equals
L-4
or
exceeds $1,000,000, with respect to Categories I or II Funds, or $250,000 with respect to Category IV or VI Funds,
the purchase will be considered a "jumbo accumulation purchase." With regard to any individual jumbo accumulation purchase, Invesco Distributors
may make payment to the dealer of record based on the cumulative total of jumbo accumulation purchases made by the same customer over
the life of his or her account(s).
If
an investor made a Large Purchase of Class A shares of Invesco Short Duration Inflation Protected Fund
or Invesco Limited Term Municipal Income Fund on or after October 31, 2002, and prior to February 1, 2010, and exchanges those shares
for Class A shares of a Category I, II, IV, V or VI Fund, Invesco Distributors will pay 1.00% of such purchase as dealer compensation
upon the exchange. The Class A shares of the Category I, II, IV, V or VI Fund received in exchange generally will be subject to a 1.00%
CDSC if the investor redeems such shares within 18 months from the date of exchange.
Payments
for Purchases of Class A Shares at NAV by Employer Sponsored Retirement and Benefit
Plans. Invesco Distributors may make the following payments to
dealers of record for purchases of Class A shares at net asset value (NAV) of Category I, II, IV, V or VI Funds by Employer Sponsored
Retirement and Benefit Plans provided that the applicable dealer of record is able to establish that the plan's purchase of such Class
A shares is a new investment (as defined below):
Percent
of Purchases
•
0.50%
of the first $20 million
•
plus
0.25% of amounts in excess of $20 million
A
"new investment" means a purchase paid for with money that does not represent (i) the proceeds of one or
more redemptions of Invesco Fund shares, (ii) an exchange of Invesco Fund shares, (iii) the repayment of one or more Employer Sponsored
Retirement and Benefit Plan loans that were funded through the redemption of Invesco Fund shares, or (iv) money returned from another
fund family. If Invesco Distributors pays a dealer concession in connection with an Employer Sponsored Retirement and Benefit Plan's or
SIMPLE IRA Plan's purchase of Class A shares at NAV, such shares may be subject to a CDSC of 1.00% of net assets for 12 months, commencing
on the date the Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan first invests in Class A shares of an Invesco Fund.
If the applicable dealer of record is unable to establish that an Employer Sponsored Retirement and Benefit Plan's or SIMPLE IRA Plan's
purchase of Class A shares at NAV is a new investment, Invesco Distributors will not pay a dealer concession in connection with such purchase
and such shares will not be subject to a CDSC.
With
regard to any individual jumbo accumulation purchase, Invesco Distributors may make payment to the
dealer of record based on the cumulative total of jumbo accumulation purchases made by the same plan over the life of the plan's account(s).
Fund
Reorganizations. Class A Shares issued in connection with a Fund's
merger, consolidation, or acquisition of the assets of another Fund will not be charged an initial sales charge.
Purchasers
Qualifying For Reductions in Initial Sales Charges. As shown in
the tables above, the applicable initial sales charge for the new purchase may be reduced and will be based on the total of your current
purchase and the value of other shares owned based on their current public offering price. These reductions are available to purchasers
that meet the qualifications listed in the prospectus under "Qualifying for Reduced Sales Charges and Sales Charge Exceptions."
How
to Qualify For Reductions in Initial Sales Charges under Rights of Accumulation (ROAs) or Letters
of Intent (LOIs). The following sections discuss different ways
that a purchaser can qualify for a reduction in the initial sales charges for purchases of Class A shares of the Invesco Funds.
Letters
of Intent
A
purchaser may pay reduced initial sales charges by (i) indicating on the Account Application that he, she or
it intends to provide a LOI; and (ii) subsequently fulfilling the conditions of that LOI.
L-5
Purchases
of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund;
Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio; and Class A, Class AX or Invesco Cash Reserve Shares of Invesco
Government Money Market Fund, as applicable, or Class IB, IC, Y and Investor Class shares of any Invesco Fund, will not be taken into
account in determining whether a purchase qualifies for a reduction in initial sales charges since they cannot be tied to a LOI.
The
LOI confirms the total investment in shares of the Invesco Funds that the purchaser intends to make within
the next 13 months. By marking the LOI section on the account application and by signing the account application, the purchaser indicates
that he, she or it understands and agrees to the terms of the LOI and is bound by the provisions described below:
Calculating
the Initial Sales Charge
•
Each
purchase of Fund shares normally subject to an initial sales charge made during the 13-month period will be made at the public offering
price applicable to a single transaction of the total dollar amount indicated by the LOI (to determine what the applicable public offering
price is, look at the sales charge table in the section on "Initial Sales Charges" above).
•
It
is the purchaser's responsibility at the time of purchase to specify the account numbers that should be considered in determining the
appropriate sales charge.
•
The
offering price may be further reduced as described below under "Rights of Accumulation" if Invesco Investment Services, Inc., the Invesco
Funds' transfer agent (Transfer Agent) is advised of all other accounts at the time of the investment.
•
Reinvestment
of dividends and capital gains distributions acquired during the 13-month LOI period will not be applied to the LOI.
Calculating
the Number of Shares to be Purchased
•
Purchases
made and shares acquired through reinvestment of dividends and capital gains distributions prior to the LOI effective date will be applied
toward the completion of the LOI based on the value of the shares calculated at the public offering price on the effective date of the
LOI.
•
If
a purchaser wishes to revise the LOI investment amount upward, he, she or it may submit a written and signed request at any time prior
to the completion of the original LOI. This revision will not change the original expiration date.
•
The
Transfer Agent will process necessary adjustments upon the expiration or completion date of the LOI.
Fulfilling
the Intended Investment
•
By
signing a LOI, a purchaser is not making a binding commitment to purchase additional shares, but if purchases made within the 13-month
period do not total the amount specified, the purchaser generally will have to pay the increased amount of sales charge.
•
To
assure compliance with the provisions of the 1940 Act, the Transfer Agent will reserve, in escrow or similar arrangement, in the form
of shares, an appropriate dollar amount computed to the nearest full share out of the initial purchase (or subsequent purchases if necessary).
All dividends and any capital gain distributions on the escrowed shares will be credited to the purchaser. All shares purchased, including
those reserved, will be registered in the purchaser's name. If the total investment specified under this LOI is completed within the 13-month
period, the reserved shares will be promptly released, and additional purchases will be subject to the appropriate breakpoint sales charge
based on the account's current ROA value.
•
If
the intended investment is not completed, the purchaser generally will pay the Transfer Agent the difference between the sales charge
on the specified amount and the sales charge on the total amount actually purchased. If the purchaser does not pay such difference within
20 days of the
L-6
expiration
date, the Transfer Agent will surrender for redemption any or all shares, to make up such difference within 60 days of the expiration
date.
•
Accounts
linked under the LOI revert back to ROA once a LOI is met, regardless of expiration date.
Canceling
the LOI
•
If
at any time before completing the LOI Program, the purchaser wishes to cancel the agreement, he or she must give written notice to Invesco
Distributors or its designee.
•
If
at any time before completing the LOI Program the purchaser requests the Transfer Agent to liquidate or transfer beneficial ownership
of his or her total shares, the LOI will be automatically canceled. If the total amount purchased is less than the amount specified in
the LOI, the Transfer Agent will redeem an appropriate number of reserved shares equal to the difference between the sales charge actually
paid and the sales charge that would have been paid if the total purchases had been made at a single time.
Other
Persons Eligible for the LOI Privilege
The
LOI privilege is also available to holders of the Connecticut General Guaranteed Account, established for
tax qualified group annuities, for contracts purchased on or before June 30, 1992.
LOIs
and Contingent Deferred Sales Charges
All
LOIs to purchase $1,000,000 or more of Class A shares of Category I, II or V Funds or $250,000 or more
of Class A shares of Category IV or VI Funds are subject to an 18-month, 1% CDSC.
Rights
of Accumulation
A
purchaser may also qualify for reduced initial sales charges under Invesco’s ROA policy. To determine whether
or not a reduced initial sales charge applies to a proposed purchase, Invesco Distributors takes into account not only the money that
is invested upon such proposed purchase, but also the value of all shares of the Invesco Funds owned by such purchaser, calculated at
their then current public offering price.
If
a purchaser qualifies for a reduced sales charge, the reduced sales charge applies to the total amount of
money being invested, even if only a portion of that amount exceeds the breakpoint for the reduced sales charge. For example, if a purchaser
already owns qualifying shares of any Invesco Fund with a value of $30,000 and wishes to invest an additional $30,000 in a Fund with a
maximum initial sales charge of 5.50%, the reduced initial sales charge of 4.50% will apply to the full $30,000 purchase and not just
to the $10,000 in excess of the $50,000 breakpoint.
To
qualify for obtaining the discount applicable to a particular purchase, the purchaser or his dealer must furnish
the Transfer Agent with a list of the account numbers and the names in which such accounts of the purchaser are registered at the time
the purchase is made.
ROAs
are also available to holders of the Connecticut General Guaranteed Account, established for tax-qualified
group annuities, for contracts purchased on or before June 30, 1992.
If
an investor's new purchase of Class A shares of a Category I, II, IV, V or VI Fund is at net asset value, the
newly purchased shares may be subject to a 1% CDSC if the investor redeems them prior to the end of the 18 month holding period.
Other
Requirements For Reductions in Initial Sales Charges. As discussed
above, investors or dealers seeking to qualify orders for a reduced initial sales charge must identify such orders and, if necessary,
support their qualification for the reduced charge. Invesco Distributors reserves the right to determine whether any purchaser is entitled
to a reduced sales charge based upon the qualifications set forth in the prospectus under "Qualifying for Reduced Sales Charges and Sales
Charge Exceptions."
Class
A Shares Sold Without an Initial Sales Charge. Invesco Distributors
permits certain other investors to invest in Class A shares without paying an initial sales charge, generally as a result of the
L-7
investor's
current or former relationship with the Invesco Funds. It is possible that a financial intermediary may not,
in accordance with its policies and procedures, be able to offer one or more of these waiver categories. If this situation occurs, it
is possible that the investor would need to invest directly through an account without a designated intermediary in order to take advantage
of the waiver. The Funds may terminate or amend the terms of these sales charge waivers at any time.
•
Any
current, former or retired trustee, director, officer or employee (or any immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries. This includes any foundation, trust
or employee benefit plan maintained by any such persons;
•
Any
current or retired officer, director, or employee (and members of his or her immediate family) of DST Systems, Inc.;
•
Shareholders
who received Class A shares of an Invesco Fund on June 1, 2010 in connection with the reorganization of a predecessor fund in which such
shareholder owned Class H, Class L, Class P, and/or Class W shares, who purchase additional Class A shares of the Invesco Fund;
•
Shareholders
of record holding shares of AIM Weingarten Fund or AIM Constellation Fund on September 8, 1986, or of AIM Charter Fund on November 17,
1986, who have continuously owned shares and who purchase additional shares of Invesco Constellation Fund or Invesco Charter Fund, respectively;
•
Unitholders
of G/SET series unit investment trusts investing proceeds from such trusts in shares of Invesco Constellation Fund in an account established
without a designated intermediary; provided, however, prior to the termination date of the trusts, a unitholder may invest proceeds from
the redemption or repurchase of his units only when the investment in shares of Invesco Constellation Fund is effected within 30 days
of the redemption or repurchase;
•
Shareholders
of the former GT Global funds as of April 30, 1987 who since that date continually have owned shares of one or more of these funds who
purchase additional Class A shares;
•
Certain
former AMA Investment Advisers' shareholders who became shareholders of the AIM Global Health Care Fund in October 1989, and who have
continuously held shares in the GT Global funds since that time, who purchase additional Class A shares;
•
Shareholders
of record of Advisor Class shares of an Invesco Fund on February 11, 2000 who have continuously owned shares of that Invesco Fund, who
purchase additional shares of that Invesco Fund;
•
Shareholders
of record of Class K shares on October 21, 2005 whose Class K shares were converted to Class A shares and who since that date have continuously
held Class A shares, who purchase additional Class A shares;
•
Shareholders
of record of Class B shares of Invesco Global Dividend Growth Securities Fund who received Class A shares of the Invesco Global Core Equity
Fund in connection with a reorganization on May 20, 2011 and who since that date have continuously owned Class A shares, who purchase
additional Class A shares of Invesco Global Core Equity Fund;
•
Shareholders
of record of Class B shares of Invesco Van Kampen Global Equity Allocation Fund who received Class A shares of the Invesco Global Core
Equity Fund in connection with a reorganization on May 20, 2011 and who since that date have continuously owned Class A shares, who purchase
additional Class A shares of Invesco Global Core Equity Fund; and
•
Unitholders
of Invesco unit investment trusts who enrolled prior to December 3, 2007 to reinvest distributions from such trusts in Class A shares
of the Invesco Funds, who receive Class A shares of an Invesco Fund pursuant to such reinvestment program in an account established without
a designated intermediary. The Invesco Funds reserve the right to modify or terminate this program at any time.
L-8
•
Certain
IRA accounts and payroll deduct IRA programs held directly at Invesco for which intermediaries offered Class A shares without an initial
sales charge, pursuant to an arrangement with OppenheimerFunds Distributor, Inc. prior to May 28, 2019.
Payments
to Dealers. Invesco Distributors may elect to re-allow the entire
initial sales charge to dealers for all sales with respect to which orders are placed with Invesco Distributors or its designee during
a particular period. Dealers to whom substantially the entire sales charge is re-allowed may be deemed to be "underwriters" as that term
is defined under the 1933 Act.
The
financial intermediary through which you purchase your shares may receive all or a portion of the sales
charges and Rule 12b-1 distribution fees discussed above. In this context, "financial intermediaries" include any broker, dealer, bank
(including bank trust departments), insurance company separate account, transfer agent, registered investment adviser, financial planner,
retirement plan administrator and any other financial intermediary having a selling, administration or similar agreement with Invesco
Distributors or one or more of its corporate affiliates (collectively, the Invesco Distributors Affiliates). In addition to those payments,
Invesco Distributors Affiliates may make additional cash payments to financial intermediaries in connection with the promotion and sale
of shares of the Invesco Funds. Invesco Distributors Affiliates make these payments from their own resources, from Invesco Distributors'
retention of underwriting concessions and from payments to Invesco Distributors under Rule 12b-1 plans. In the case of sub-accounting
payments, discussed below, Invesco Distributors Affiliates will be reimbursed directly by the Invesco Funds for such payments. These additional
cash payments are described below. The categories described below are not mutually exclusive. The same financial intermediary, or one
or more of its affiliates, may receive payments under more than one or all categories. Most financial intermediaries that sell shares
of the Invesco Funds receive one or more types of these cash payments. Financial intermediaries negotiate the cash payments to be paid
on an individual basis. Where services are provided, the costs of providing the services and the overall package of services provided
may vary from one financial intermediary to another. Invesco Distributors Affiliates do not make an independent assessment of the cost
of providing such services.
Certain
financial intermediaries listed below received one or more types of the following payments during the
prior calendar year. This list is not necessarily current and will change over time. Certain arrangements are still being negotiated,
and there is a possibility that payments will be made retroactively to financial intermediaries not listed below. Accordingly, please
contact your financial intermediary to determine whether they currently may be receiving such payments and to obtain further information
regarding any such payments.
Financial
Support Payments. Invesco Distributors Affiliates make financial
support payments as incentives to certain financial intermediaries to promote and sell shares of Invesco Funds. The benefits Invesco Distributors
Affiliates receive when they make these payments include, among other things, placing Invesco Funds on the financial intermediary's funds
sales system, and access (in some cases on a preferential basis over other competitors) to individual members of the financial intermediary's
sales force or to the financial intermediary's management. Financial support payments are sometimes referred to as "shelf space" payments
because the payments compensate the financial intermediary for including Invesco Funds in its Fund sales system (on its sales shelf).
Invesco Distributors Affiliates compensate financial intermediaries differently depending typically on the level and/or type of considerations
provided by the financial intermediary. In addition, payments typically apply only to retail sales, and may not apply to other types of
sales or assets (such as sales to Retirement and Benefit Plans, qualified tuition programs, or fee based adviser programs – some
of which may generate certain other payments described below).
The
financial support payments Invesco Distributors Affiliates make may be calculated on sales of shares of
Invesco Funds (Sales-Based Payments), in which case the total amount of such payments shall not exceed 0.25% of the public offering price
of all such shares sold by the financial intermediary during the particular period. Such payments also may be calculated on the average
daily net assets of the applicable Invesco Funds attributable to that particular financial intermediary (Asset-Based Payments), in which
case the total amount of such cash payments shall not exceed 0.25% per annum of those assets during a defined period.
L-9
Sales-Based
Payments primarily create incentives to make new sales of shares of Invesco Funds and Asset-Based
Payments primarily create incentives to retain previously sold shares of Invesco Funds in investor accounts. Invesco Distributors Affiliates
may pay a financial intermediary either or both Sales-Based Payments and Asset-Based Payments.
Sub-Accounting
and Networking Support Payments. The Transfer Agent, an Invesco
Distributors Affiliate, acts as the transfer agent for the Invesco Funds, registering the transfer, issuance and redemption of Invesco
Fund shares, and disbursing dividends and other distributions to Invesco Funds shareholders. However, many Invesco Fund shares are owned
or held by financial intermediaries, as that term is defined above, for the benefit of their customers. In those cases, the Invesco Funds
often do not maintain an account for the shareholder. Thus, some or all of the transfer agency functions for these accounts are performed
by the financial intermediary. In these situations, Invesco Distributors Affiliates may make payments to financial intermediaries that
sell Invesco Fund shares for certain transfer agency services, including record keeping and sub-accounting shareholder accounts. Payments
for these services typically do not exceed 0.25% (for non-Class R5 shares) or 0.10% (for Class R5 shares) of average annual assets of
such share classes or $19 per annum per shareholder account (for non-Class R5 shares only). No Sub-Accounting or Networking Support payments
will be made with respect to Invesco Funds' Class R6 shares or Institutional Class shares. Invesco Distributors Affiliates also may make
payments to certain financial intermediaries that sell Invesco Fund shares in connection with client account maintenance support, statement
preparation and transaction processing. The types of payments that Invesco Distributors Affiliates may make under this category include,
among others, payment of networking fees of up to $10 per shareholder account maintained on certain mutual fund trading systems.
All
fees payable by Invesco Distributors Affiliates pursuant to a sub-transfer agency, omnibus account service
or sub-accounting agreement are charged back to the Invesco Funds, subject to certain limitations approved by the Board of the Trust.
Other
Cash Payments. From time to time, Invesco Distributors Affiliates,
at their expense and out of their own resources, may provide additional compensation to financial intermediaries which sell or arrange
for the sale of shares of a Fund. Such compensation provided by Invesco Distributors Affiliates may include payment of ticket charges
per purchase or exchange order placed by a financial intermediary, one-time payments for ancillary services such as setting up funds on
a financial intermediary's mutual fund trading systems, financial assistance to financial intermediaries that enable Invesco Distributors
Affiliates to participate in and/or present at conferences or seminars, sales or training programs for invited registered representatives
and other employees, client entertainment, client and investor events, and other financial intermediary-sponsored events, and travel expenses,
including lodging incurred by registered representatives and other employees in connection with client prospecting, retention and due
diligence trips. Other compensation may be offered to the extent not prohibited by state laws or any self-regulatory agency, such as the
Financial Industry Regulatory Authority (FINRA) (formerly, NASD, Inc.). Invesco Distributors Affiliates make payments for entertainment
events they deem appropriate, subject to Invesco Distributors Affiliates guidelines and applicable law. These payments may vary depending
upon the nature of the event or the relationship.
Invesco
Distributors Affiliates are motivated to make the payments described above because they promote
the sale of Invesco Fund shares and the retention of those investments by clients of financial intermediaries. To the extent financial
intermediaries sell more shares of Invesco Funds or retain shares of Invesco Funds in their clients' accounts, Invesco Distributors Affiliates
benefit from the incremental management and other fees paid to Invesco Distributors Affiliates by the Invesco Funds with respect to those
assets.
In
certain cases these payments could be significant to the financial intermediary. Your financial intermediary
may charge you additional fees or commissions other than those disclosed in the prospectus. You can ask your financial intermediary about
any payments it receives from Invesco Distributors Affiliates or the Invesco Funds, as well as about fees and/or commissions it charges.
You should consult disclosures made by your financial intermediary at the time of purchase.
L-10
Certain
Financial Intermediaries That Received One or More Types of Payments
Admin
Partners LLC
ADP
Broker Dealer Inc
Advisor
Group
Advisory
Services
Alight
Financial Solutions LLC
Allianz
Life
Allstate
Alta
Montclair
American
Enterprise Investment
American
Fidelity Assurance Company
American
General
American
Portfolios Financial
American
United Life Insurance Company
Ascensus
LLC
Avantax
Investment Services Inc
AXA
Advisors LLC
AXA
Equitable
Bank
of America NA
Bank
of New York Mellon
Bank
of Oklahoma – Nabank & Co
Bay
Bridge Administrators LLC
Benefit
Plans Administrators
Benefit
Trust Company
BMO
Harris Bank NA
BOSC
Inc
Brighthouse
Life Insurance Co
Broadway
National Bank
Brown
Brothers Harriman & Co
Cadaret
Grant and Co Inc
Cambridge
Investment Research Inc
Cantella
& Company
Cavu
Securities, LLC
Cetera
Financial Group Inc
Cetera
Investment Services LLC
Charles
Schwab and Company Inc
Citibank
NA
Citigroup
Global Markets
CoBank
Comerica
Bank
Commonwealth
Annuity and Life Insurance Company
Commonwealth
Financial Network
CUSO
Financial Services LP
Delaware
Life Insurance Company
Digital
Retirement Solutions
Donnelley
Financials LLC
E Trade
Financial
Educators
Benefit Consultants LLC
Edward
Jones & Co
Empire
Fidelity Investments
Empower
Envestnet
Asset Management Inc
Envoy
Plan Services Inc
Equitable
Advisors LLC
Equitable
Life
Farmers
Financial Solutions LLC
Fidelity
Brokerage Services
Fidelity
Institutional
Fidelity
Investments
Fifth
Third
Financial
Data Services Inc
First
Command
First
Financial Administrators
FIS
Capital Markets US LLC
Forethought
Life Insurance Company
Frost
Brokerage Services Inc
Frost
National Bank
FSC
Securities Corporation
Genworth
Financial
Goldman
Sachs & Co
Guardian
Guardian
Insurance & Annuity Co Inc
Hantz
Financial Services Inc
Hare
and Company
Hartford
Life
Hilltop
Securities Inc
Huntington
Securities Inc
Institutional
Cash Distributors LLC
Janney
Montgomery Scott LLC
Jefferson
National Life Insurance Company
Jefferson
National Life Insurance Company of New York
John
Hancock
JP
Morgan Chase Bank
JP
Morgan Clearing Corp
JP
Morgan Securities LLC
Kestra
Investment Services LLC
Key
Bank National Association
Ladenburg
Thalmann Financial Services Inc
Legend
Group Adserv
Lincoln
Benefit Life Company
Lincoln
Financial
Lincoln
Financial Securities Corp
Lincoln
Investment Planning
Lincoln
National Life Insurance
LPL
Financial LLC
M&T
Bank
Mass
Mutual
Merrill
Lynch
Merrill
Lynch Pierce Fenner and Smith Inc
Metropolitan
Life Insurance Company
Mid
Atlantic
Minnesota
Life
Mitsubishi
UFJ Trust and Banking
MML
Investors Services LLC
Moreton
Asset Management
Moreton
Capital Markets LLC
Morgan
Stanley
MSCS
Financial Services Inc
Mutual
Securities Inc
Nassau
Companies of New York
National
Benefit Services LLC
National
Financial Services LLC
National
Plan Administrators Inc
Nationwide
New
York Life Insurance and Annuity Corporation
Newport
Retirement Plan Services Inc
Next
Financial Group Inc
Northwestern
Mutual Investment Services
Oppenheimer
& Co Inc
ORANJ
Pacific
Life Fund Advisors LLC
Pacific
Life Insurance Company
Penserv
Plan Services Inc
Pershing
Pershing
LLC
Primerica
Financial Services
Plains
Capital Bank
Plan
Administrators Inc
PNC
Capital Markets LLC
PNC
Investments LLC
Principal
Life Insurance Company
Protective
Life
Pruco
Life Insurance Company
Pruco
Life Insurance Company of New Jersey
Pruco
Securities LLC
Prudential
Raymond
James
RBC
Capital Markets LLC
RBC
Wealth Management
Reliance
Trust Company
Research
Affiliates LLC
Rhode
Island
Riversource
Life Insurance Company
Robert
W Baird and Co Inc
Russell
Investment Management LLC
Sammons
Financial Network LLC
Santander
Bank NA
SB
Business Services LLC
Schools
First Plan Administration
Security
Benefit Life
Security
Distributors Inc
Security
Financial Resources
Security
Life of Denver
SEI
Private Trust Company
Siracusa
Benefits Programs, Inc
Sorrento
Pacific Financial LLC
Standard
Insurance Company
State
Street Corporation
Stifel
Nicolaus & Co Inc
Stifel
Trust Company Delaware NA
Sungard
T Rowe
Price Associates Inc
Talcott
Resolution Life Insurance Company
TCG
Administrators
TD
Ameritrade
TDS
Group Inc
The
OMNI Group
TIAA-CREF
Transamerica
Financial Life Insurance Company
Transamerica
Life Insurance Company
Transamerica
Premier Life Insurance Co
Treasury
Curve
Truist
Trust
Management Network LLC
Tuition
Plan Consortium LLC
UBS
Financial Services Inc
UMB
Bank
Union
Bank
US
Bancorp Investments Inc
US
Bank
L-11
VALIC
Financial
Vanguard
Brokerage Services
Vanguard
Group Inc
Variable
Annuity Life Insurance Co
VOYA
Financial Advisors Inc
VOYA
Institutional Plan Services LLC
VOYA Insurance
and Annuity Company
VOYA
Retirement Insurance and Annuity Company
VOYA
Services Company
VRSCO-American
General Distributors
Wedbush
Securities Inc
Wells
Fargo
Wells
Fargo Bank NA
Wells
Fargo Securities LLC
Western
International Securities Inc
Woodforest
National Bank
Zions
First National Bank
Zurich
American Life Insurance Company
Purchases
of Class C Shares
Class
C shares are sold at net asset value, and are not subject to an initial sales charge. Investors in Class
C shares may pay a CDSC if they redeem their shares within the first year after purchase. See the prospectus for additional information
regarding this CDSC. Invesco Distributors may pay sales commissions to dealers and institutions who sell Class C shares of the Invesco
Funds at the time of such sales. Payments with respect to Invesco Funds other than Invesco Floating Rate ESG Fund and Invesco Short Term
Bond Fund will generally equal 1.00% of the purchase price and will consist of a sales commission of 0.75% plus an advance of the first
year service fee of 0.25%. Payments with respect to Invesco Floating Rate ESG Fund will equal 0.75% of the purchase price and will consist
of a sales commission of 0.50% plus an advance of the first year service fee of 0.25%. Payments with respect to Invesco Short Term Bond
Fund will equal 0.65% of the purchase price and will consist of a sales commission of 0.40% plus an advance of the first year service
fee of 0.25%. (Invesco Distributors has contractually agreed to waive 0.15% of Rule 12b-1 distribution plan payments of Class C shares
of Invesco Short Term Bond Fund. Unless Invesco Distributors continues the fee waiver agreement, it will terminate on June 30, 2023. While
the fee waiver agreement is in place, payments with respect to Invesco Short Term Bond will equal 0.50% of the purchase price and will
consist of a sales commission of 0.25% plus an advance of the first year service fee of 0.25%.) These commissions are not paid on sales
to investors exempt from the CDSC, including shareholders of record of AIM Advisor Funds, Inc. on April 30, 1995, who purchase additional
shares in any of the Invesco Funds on or after May 1, 1995, and in circumstances where Invesco Distributors grants an exemption on particular
transactions.
Payments
with Regard to Converted Class K Shares
For
Class A shares acquired by a former Class K shareholder (i) as a result of a fund merger; or (ii) as a result
of the conversion of Class K shares into Class A shares on October 21, 2005, Invesco Distributors will pay financial intermediaries 0.45%
on such Class A shares as follows: (i) 0.25% from the Class A shares' Rule 12b-1 plan fees; and (ii) 0.20% from Invesco Distributors'
own resources provided that, on an annualized basis for 2005 as of October 21, 2005, the 0.20% exceeds $2,000 per year.
Purchase
and Redemption of Class P Shares
Certain
former investors in the AIM Summit Plans I and II may acquire Class P shares at net asset value. Please
see Invesco Summit Fund's prospectus for details.
Purchases
of Class R Shares
Class
R shares are sold at net asset value and are not subject to an initial sales charge. Invesco Distributors
may pay dealers of record an annual distribution and/or service fee of up to 0.50% of average daily net assets and such payments will
commence immediately. For any Class R shares sold on or before January 17, 2020 that received an upfront dealer concession, Invesco Distributors
may pay dealers of record an annual distribution and/or service fee of up to 0.50% of average daily net assets and such payments will
commence in the 13th month from the date of purchase.
Purchases
of Class S Shares
Class
S shares are limited to investors who purchase shares with the proceeds received from a systematic
contractual investment plan redemption within the 12-months prior to purchasing Class S shares, and who purchase through an approved financial
intermediary that has an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the
general public. An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to
purchase additional Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan
combined with the subsequent Class S share contributions equals the face
L-12
amount
of what would have been the investor's systematic contractual investment plan under the 30-year investment
option. The face amount of a systematic contractual investment plan is the combined total of all scheduled monthly investments under that
plan. For a plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under the 30-year extended
investment option. Class S shares have a 12b-1 fee of 0.15%.
Purchases
of Class Y Shares
Class
Y shares are sold at net asset value, and are not subject to an initial sales charge or to a CDSC. Please
refer to the prospectus for more information.
Purchases
of Investor Class Shares
Investor
Class shares are sold at net asset value, and are not subject to an initial sales charge or to a CDSC.
Invesco Distributors may pay dealers and institutions an annual service fee of 0.25% of average daily net assets and such payments will
commence immediately. The Investor Class is closed to new investors.
Purchases
of Class R5 and R6 Shares
Class
R5 and R6 shares are sold at net asset value, and are not subject to an initial sales charge or to a CDSC.
Please refer to the Class R5 and R6 prospectus for more information.
Exchanges
Terms
and Conditions of Exchanges. Normally, shares of an Invesco Fund
to be acquired by exchange are purchased at their net asset value or applicable offering price, as the case may be, determined on the
date that such request is received. If a shareholder is exchanging into a Fund paying daily dividends, and the release of the exchange
proceeds is delayed for the foregoing five-day period, such shareholder will not begin to accrue dividends until the sixth business day
after the exchange.
Redemptions
General.
Shares of the Invesco Funds may be redeemed directly through the Transfer Agent or through any dealer who has entered into an agreement
with Invesco Distributors. A redemption is effected at the net asset value per share of the applicable Fund next determined after the
redemption request is received in good order. To be in good order, the investor, either directly or through his financial intermediary
must give the Funds’ transfer agent all required information and documentation. Payments from a redemption generally constitute
taxable events. Because such payments are funded by the redemption shares, they may result in a return of capital and in capital gains
or losses, rather than in ordinary income.
An
investor or a financial intermediary may submit a written request to the Funds’ transfer agent for correction
of transactions involving Fund shares. If the Funds’ transfer agent agrees to correct a transaction, and the correction requires
a dividend adjustment, the investor or the intermediary must agree in writing to reimburse the Funds for any resulting loss.
Payment
for redeemed institutional shares is normally made by Federal Reserve wire to the bank account designated
in the investor’s account application, while payment for redeemed retail shares is normally made by check, but may be sent electronically
by either Federal Reserve wire or ACH at the investor’s request. Any changes to bank instructions must be submitted to the Funds’
transfer agent in writing. The Funds’ transfer agent may request additional documentation. For funds that allow checkwriting, if
you do not have a sufficient number of shares in your account to cover the amount of the check and any applicable deferred sales charge,
the check will be returned and no shares will be redeemed. Because it is not possible to determine your account’s value in advance,
you should not write a check for the entire value of your account or try to close your account by writing a check.
The
Funds’ transfer agent may request that an intermediary maintain separate master accounts in the Funds
for shares held by the intermediary (a) for its own account, for the account of other institutions and for accounts for which the intermediary
acts as a fiduciary; and (b) for accounts for which the intermediary acts in
L-13
some
other capacity. An intermediary may aggregate its master accounts and sub-accounts to satisfy the minimum
investment requirement.
With
regard to Money Market Funds that do not qualify as Government Money Market Funds, if a Fund’s weekly
liquid assets fall below 30% of its total assets, the Board, in its discretion, may impose liquidity fees of up to 2% of the value of
the shares redeemed and/or gates on redemptions. In addition, if a Fund’s weekly liquid assets fall below 10% of its total assets
at the end of any business day, the Fund must impose a 1% liquidity fee on shareholder redemptions unless the Board determines that not
doing so is in the best interests of the Fund. For Funds that do not qualify as Government Money Market Funds, when a fee or a gate is
in place, shareholders will not be permitted to exchange into or out of a Fund.
The
Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of the Fund and its shareholders. Also, liquidity fees and redemption gates will automatically terminate at
the beginning of the next business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates
may only last up to 10 business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase
of shares or to subject the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge
that a fee or a gate is in effect.
The
Board may, in its discretion, permanently suspend redemptions and liquidate if, among other things, a Money
Market Fund, at the end of a business day, has less than 10% of its total assets invested in weekly liquid assets. The Board of the Retail
and Government Money Market Funds may suspend redemptions and liquidate if the Board determines that the deviation between its amortized
cost price per share and its market-based NAV per share may result in material dilution or other unfair results to investors or existing
shareholders.
Systematic
Redemption Plan. A Systematic Redemption Plan permits a shareholder
of an Invesco Fund to withdraw on a regular basis at least $50 per withdrawal. At the time the withdrawal plan is established, the total
account value must be $5,000 or more. Under a Systematic Redemption Plan, all shares are to be held by the Transfer Agent. To provide
funds for payments made under the Systematic Redemption Plan, the Transfer Agent redeems sufficient full and fractional shares at their
net asset value in effect at the time of each such redemption.
Payments
under a Systematic Redemption Plan generally constitute taxable events. Because such payments
are funded by the redemption of shares, they may result in a return of capital and in capital gains or losses, rather than in ordinary
income. Also because sales charges are imposed on additional purchases of Class A shares, it is disadvantageous to effect such purchases
while a Systematic Redemption Plan is in effect.
Each
Invesco Fund bears its share of the cost of operating the Systematic Redemption Plan.
Contingent
Deferred Sales Charges Imposed upon Redemption of Shares
A
CDSC may be imposed upon the redemption of Large Purchases of Class A shares of Category I, II, IV, V
and VI Funds, upon the redemption of Class C shares. (No CDSC applies to Class A2 shares.) See the prospectus for additional information
regarding CDSCs.
Contingent
Deferred Sales Charge Exceptions for Large Purchases of Class A Shares.
An investor who has made a Large Purchase of Class A shares of a Category I, II, IV, V or VI Fund, will not be subject to a CDSC upon
the redemption of those shares in the following situations:
•
Redemptions
of shares held by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan in cases where (i) the plan has remained invested
in Class A shares of a Fund for at least 12 months, or (ii) the redemption is not a complete redemption of all Class A shares held by
the plan;
•
Redemptions
of shares by the investor where the investor's financial intermediary has elected to waive the amounts otherwise payable to it by Invesco
Distributors and notifies Invesco Distributors prior to the time of investment;
L-14
•
Minimum
required distributions made in connection with a Retirement and Benefit Plan following attainment of age 70 1∕2
, or older, and only with respect to that portion of such distribution that does not exceed 12% annually of the participant's beneficiary
account value in a particular Fund;
•
Redemptions
following the death or post-purchase disability of a registered shareholder or beneficial owner of an account. Subsequent purchases into
such account are not eligible for the CDSC waiver; and
•
Amounts
from a monthly, quarterly or annual Systematic Redemption Plan of up to an annual amount of 12% of the account value on a per fund basis,
provided; the investor reinvests his dividends.
Contingent
Deferred Sales Charge Exceptions for Class C Shares. CDSCs will
not apply to the following redemptions of Class C shares, as applicable:
•
Redemptions
following the death or post-purchase disability of a registered shareholder or beneficial owner of an account. Subsequent purchases into
such account are not eligible for the CDSC waiver;
•
Distributions
from Retirement and Benefit Plans where redemptions result from (i) required minimum distributions to plan participants or beneficiaries
who are age 70 1∕2
or older, and only with respect to that portion of such distributions that does not exceed 12% annually of the participant's or beneficiary's
account value in a particular Fund; (ii) in kind transfers of assets where the participant or beneficiary notifies the distributor of
the transfer no later than the time the transfer occurs; (iii) tax-free rollovers or transfers of assets to another Retirement and Benefit
Plan invested in Class C shares of one or more of the Funds; (iv) tax-free returns of excess contributions or returns of excess deferral
amounts; and (v) distributions on the death or disability (as defined in the Code) of the participant or beneficiary;
•
Amounts
from a monthly or quarterly Systematic Redemption Plan of up to an annual amount of 12% of the account value on a per fund basis provided
the investor reinvests his dividends;
•
Liquidation
initiated by the Fund when the account value falls below the minimum required account size of $500; and
•
Investment
account(s) of Invesco and its affiliates.
In
addition to the foregoing, CDSCs will not apply to the following redemptions of Class C shares:
•
Redemption
of shares held by Employer Sponsored Retirement and Benefit Plans or Employer Sponsored IRAs in cases where (i) the plan has remained
invested in Class C shares of a Fund for at least 12 months, or (ii) the redemption is not a complete redemption of all Class C shares
held by the plan; or
•
A
total or partial redemption of shares where the investor's financial intermediary has elected to waive amounts otherwise payable to it
by Invesco Distributors and notifies Invesco Distributors prior to the time of investment.
It
is possible that a financial intermediary may not be able to offer one or more of the waiver categories described
in this section. If this situation occurs, it is possible that the investor would need to invest directly through an account without a
designated intermediary in order to take advantage of these waivers. Investors should ask their financial intermediary whether they offer
the above CDSCs. The Funds may terminate or amend the terms of these CDSCs at any time.
General
Information Regarding Purchases, Exchanges and Redemptions
Good
Order. Purchase, exchange and redemption orders must be received
in good order in accordance with the Transfer Agent's policies and procedures and U.S. regulations. The Transfer Agent reserves the right
to refuse transactions. Transactions not in good order will not be processed and once brought into good order, will receive the current
price. To be in good order, an investor or financial intermediary must supply the Transfer Agent with all required information and documentation,
including signature guarantees and notary
L-15
public
stamps as required. In addition, if a purchase of shares is made by check, the check must be received in
good order. This means that the check must be properly completed and signed, and legible to the Transfer Agent in its sole discretion.
If a check used to purchase shares does not clear, or if any investment order must be canceled due to nonpayment, the investor will be
responsible for any resulting loss.
Authorized
Agents. The Transfer Agent and Invesco Distributors may authorize
agents to accept purchase and redemption orders that are in good order on behalf of the Invesco Funds. In certain cases, these authorized
agents are authorized to designate other intermediaries to accept purchase and redemption orders on a Fund's behalf. The Fund will be
deemed to have received the purchase or redemption order when the Fund's authorized agent or its designee accepts the order. The order
will be priced at the net asset value next determined after the order is accepted by the Fund's authorized agent or its designee. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts
it, which may not occur on the day submitted to the financial intermediary.
Signature
Guarantees. Acceptable guarantors include banks, broker-dealers,
credit unions, national securities exchanges, savings associations and any other organization, provided that such institution or organization
qualifies as an "eligible guarantor institution" as that term is defined in rules adopted by the SEC, and further provided that such guarantor
institution is listed in one of the reference guides contained in the Transfer Agent's current Signature Guarantee Standards and Procedures,
such as certain domestic banks, credit unions, securities dealers, or securities exchanges. While a notary public stamp may be accepted
in certain limited situations, it is not an acceptable replacement for a signature guarantee. The Transfer Agent will also accept signatures
with either: (1) a signature guaranteed with a medallion stamp of the STAMP Program, or (2) a signature guaranteed with a medallion stamp
of the NYSE Medallion Signature Program, provided that in either event, the amount of the total transaction involved does not exceed the
surety coverage amount indicated on the medallion. For information regarding whether a particular institution or organization qualifies
as an "eligible guarantor institution" and to determine how to fulfill a signature guarantee requirement, an investor should contact the
Client Services Department of the Transfer Agent.
Transactions
by Telephone. By signing an account application form, an investor
agrees that the Transfer Agent may surrender for redemption any and all shares held by the Transfer Agent in the designated account(s),
or in any other account with any of the Invesco Funds, present or future, which has the identical registration as the designated account(s).
The Transfer Agent is thereby authorized and directed to accept and act upon any telephone redemptions of shares held in any of the account(s)
listed, from any person who requests the redemption proceeds to be applied to purchase shares in any one or more of the Invesco Funds,
provided that such Fund is available for sale and provided that the registration and mailing address of the shares to be purchased are
identical to the registration of the shares being redeemed. An investor acknowledges by signing the form that he understands and agrees
that the Transfer Agent may not be liable for any loss, expense or cost arising out of any telephone exchange requests effected in accordance
with the authorization set forth in these instructions if they reasonably believe such request to be genuine. Procedures for verification
of telephone transactions may include recordings of telephone transactions (maintained for six months), requests for confirmation of the
shareholder's Social Security Number and current address, and mailings of confirmations promptly after the transactions. The Transfer
Agent reserves the right to modify or terminate the telephone exchange privilege at any time without notice. An investor may elect not
to have this privilege by marking the appropriate box on the application. Then any exchanges must be effected in writing by the investor.
Internet
Transactions. An investor may effect transactions in his account
through the Internet by establishing a Personal Identification Number (PIN). By establishing a PIN the investor acknowledges and agrees
that neither the Transfer Agent nor Invesco Distributors will be liable for any loss, expense or cost arising out of any Internet transaction
effected by them in accordance with any instructions submitted by a user who transmits the PIN as authentication of his or her identity.
Procedures for verification of Internet transactions include requests for confirmation of the shareholder's PIN and mailing of confirmations
promptly after the transactions. The investor also acknowledges that the ability to effect Internet transactions may be
L-16
terminated
at any time by the Invesco Funds. Policies for processing transactions via the Internet may differ from
policies for transactions via telephone due to system settings.
Abandoned
Property. It is the responsibility of the investor to ensure that
the Transfer Agent maintains a correct address for his account(s). An incorrect address may cause an investor's account statements and
other mailings to be returned to the Transfer Agent. Upon receiving returned mail, the Transfer Agent will attempt to locate the investor
or rightful owner of the account. If the Transfer Agent is unable to locate the investor, then it will determine whether the investor's
account has legally been abandoned. The Transfer Agent is legally obligated to escheat (or transfer) abandoned property to the appropriate
state's unclaimed property administrator in accordance with statutory requirements. The investor's last known address of record determines
which state has jurisdiction.
Retirement
and Benefit Plans Sponsored by Invesco Distributors. Invesco Distributors
acts as the prototype sponsor for certain types of Retirement and Benefit Plan documents. These Retirement and Benefit Plan documents
are generally available to anyone wishing to invest Retirement and Benefit Plan assets in the Funds. These documents are provided subject
to terms, conditions and fees that vary by plan type. Contact your financial intermediary for details.
Miscellaneous
Fees. In certain circumstances, the intermediary maintaining the
shareholder account through which your Fund shares are held may assess various fees related to the maintenance of that account, such as:
•
an
annual custodial fee on accounts where Invesco Distributors acts as the prototype sponsor;
•
expedited
mailing fees in response to overnight redemption requests; and
•
copying
and mailing charges in response to requests for duplicate statements.
Please
consult with your intermediary for further details concerning any applicable fees.
Offering
Price
The
following formula may be used to determine the public offering price per Class A share of an investor’s
investment:
Net
Asset Value / (1 – Sales Charge as % of Offering Price) = Offering Price. For example, at the close of business
on December 30,
2022, a Fund – Class A shares had a net asset value per share of $10.52. The offering price, assuming an initial sales charge of
5.50%, therefore was $11.13.
Class
R5 and R6 shares of the Invesco Funds are offered at net asset value.
The
offering price of each money market fund's shares is the Fund's net asset value per share. The Invesco
U.S. Government Money Portfolio and Invesco Government Money Market Fund value their portfolio securities on the basis of amortized cost,
which approximates market value. This method of valuation is designed to enable a Fund to price its shares at $1.00 per share. The Funds
cannot guarantee their net asset value will always remain at $1.00 per share.
Calculation
of Net Asset Value
Each
Invesco Fund, except for Invesco Government Money Market Fund, generally determines its net asset
value per share once daily on each day the NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary
close of regular trading) or earlier in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each
Fund, except for Invesco Government Money Market Fund, generally still will determine the net asset value of its shares as of 4:00 p.m.
Eastern Time on that business day. Invesco Government Money Market Fund will generally determine the net asset value of their shares
at 5:30 p.m. Eastern Time on each business day. The Invesco Funds determine net asset value per share by dividing the value of an Invesco
Fund's securities, cash and other assets (including interest accrued but not collected) attributable to a particular class, less all its
liabilities (including accrued expenses and dividends payable) attributable to that class, by the total number of shares
L-17
outstanding
of that class. Determination of an Invesco Fund's net asset value per share is made in accordance
with generally accepted accounting principles. Generally, the portfolio securities for non-money market funds are recorded in the NAV
no later than trade date plus one, except on fiscal quarter ends, such securities are recorded on trade date. For money market funds,
portfolio securities are recorded in the NAV on trade date, as described below. Under normal circumstances, market valuation and fair
valuation, as described below, are not used to determine share price for money market funds that seek to maintain a constant NAV because
shares of money market funds are valued at amortized cost, as described below.
With
respect to non-money market funds, the net asset value for shareholder transactions may be different
than the net asset value reported in the Invesco Fund's financial statement due to adjustments required by generally accepted accounting
principles made to the net asset value of the Invesco Fund at period end.
Futures
contracts may be valued at the final settlement price set by an exchange on which they are principally
traded. U.S.
exchange-traded options are valued at the mean between the last bid and asked
prices from the exchange on which they principally trade. Non-U.S.
exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange
are valued by an independent source at the mean between the last bid and ask prices. A security listed or traded on an exchange (excluding
convertible bonds) held by an Invesco Fund is valued at its last sales price or official closing price on the exchange where the security
is principally traded or, lacking any trades or official closing price on a particular day, the security may be valued at the closing
bid price on that day. Each equity security traded in the over-the-counter market is valued on the basis of prices furnished by independent
pricing services vendors or market makers. Debt securities (including convertible bonds) and unlisted equities are fair valued using an
evaluated quote provided by an independent pricing vendor. Evaluated quotes provided by the pricing vendor 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 special securities, dividend rate, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics
and other market data. Securities for which market prices are not provided by any of the above methods may be valued based upon quotes
furnished by independent sources and are valued at the last bid price in the case of equity securities and in the case of debt obligations
the mean between the last bid and ask prices. Senior secured floating rate loans, corporate loans and senior secured floating rate debt
securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing
service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics,
institution-size trading in similar groups of securities and other market data. Investments in open-end and closed-end registered investment
companies that do not trade on an exchange are valued at the end of day NAV per share.
Generally,
trading in corporate bonds, U.S. government securities and money
market instruments is substantially completed each day prior to the close of the customary trading session of the NYSE. The values of
such securities used in computing the NAV of an Invesco Fund's shares are determined at such times. Occasionally, events affecting the
values of such securities may occur between the times at which such values are determined and the close of the customary trading session
of the NYSE. If the Adviser believes a development/event has actually caused a closing price to no longer reflect current market value,
the closing price may be adjusted to reflect the fair value of the affected security as of the close of the NYSE as determined in good
faith using the valuation policy approved by the Board and related procedures.
Foreign
securities are converted into U.S. dollar amounts using 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
not representative of market value in the Adviser’s judgment (“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 are significant and may make the closing
price unreliable, the Adviser may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its
judgment, is likely to have affected the closing price of a foreign security, it will price the security at fair value in good faith using
the valuation policy approved by the Board and related procedures.
L-18
Adjustments
to closing prices to reflect fair value may also be based on a screening process from a pricing vendor
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 market value as of the close of the NYSE. For foreign securities where the Adviser believes, at the approved
degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication of fair value from
the pricing vendor to determine the fair value of the security. The pricing vendor, pricing methodology or degree of certainty may change
from time to time. Multiple factors may be considered by the pricing vendor in determining adjustments to reflect fair value and may include
information relating to sector indices, American Depositary Receipts, domestic and foreign index futures, and exchange-traded funds.
Invesco
Fund securities primarily traded in foreign markets may be traded in such markets on days that are
not business days of the Invesco Fund. Because the NAV per share of each Invesco Fund is determined only on business days of the Invesco
Fund, the value of the portfolio securities of an Invesco Fund that invests in foreign securities may change on days when an investor
cannot exchange or redeem shares of the Invesco Fund.
Securities
for which market quotations are not available or are unreliable are valued at fair value as determined
in good faith by or under the supervision of the Trust's officers in accordance with the valuation policy approved by the Board and related
procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed
in the course of making a good faith determination of a security's fair value.
Calculation
of Net Asset Value (Certain Invesco Money Market Funds)
The
Board has established procedures, in accordance with Rule 2a-7 under the 1940 Act, designed to stabilize
each Fund’s net asset value per share at $1.00, to the extent reasonably possible. Such procedures include daily calculation of
the extent of the deviation, if any, of the current net asset value per share using available market quotations from the fund’s
amortized cost price per share, and the periodic review by the Trustees of the amount of such deviation. The reviews are used to determine
whether net asset value, calculated by using available market quotations, deviates from $1.00 per share and, if so, whether such deviation
may result in material dilution or is otherwise unfair to investors or existing shareholders. In the event the trustees determine that
a material deviation exists, they intend to take such corrective action as they deem necessary and appropriate. Such actions may include
selling portfolio securities prior to maturity in order to realize capital gains or losses or to shorten average portfolio maturity, withholding
dividends, redeeming shares in kind, or establishing a net asset value per share by using available market quotations. When available
market quotations are used to establish the market-based net asset value, the net asset value could possibly be more or less than $1.00
per share. The Funds intend to comply with any amendments made to Rule 2a-7 promulgated under the 1940 Act which may require corresponding
changes in the Funds’ procedures which are designed to stabilize each Fund’s price per share at $1.00.
Under
the amortized cost method, each investment is valued at its cost and thereafter any discount or premium
is amortized on a constant basis to maturity. Although this method provides certainty of valuation, it may result in periods in which
the amortized cost value of the Funds’ investments is high or lower than the price that would be received if the investments were
sold.
Redemptions
in Kind
Although
the Invesco Funds generally intend to pay redemption proceeds solely in cash, the Invesco Funds
reserve the right to determine, in their sole discretion, whether to satisfy redemption requests by making payment in securities or other
property (known as a redemption in kind). For instance, an Invesco Fund may make a redemption in kind if a cash redemption would disrupt
its operations or performance. Securities that will be delivered as payment in redemptions in kind will be valued using the same methodologies
that the Invesco Fund typically utilizes in valuing such securities. Shareholders receiving such securities are likely to incur transaction
and brokerage costs on their subsequent sales of such securities, and the securities may increase or decrease in value until the shareholder
sells them. The Trust, on behalf of the Invesco Funds, made an election under Rule 18f-1 under the 1940 Act (a Rule 18f-1 Election) and
therefore,
L-19
the
Trust, on behalf of an Invesco Fund, is obligated to redeem for cash all shares presented to such Invesco Fund
for redemption by any one shareholder in an amount up to the lesser of $250,000 or 1% of that Invesco Fund's net assets in any 90-day
period. The Rule 18f-1 Election is irrevocable while Rule 18f-1 under the 1940 Act is in effect unless the SEC by order permits withdrawal
of such Rule 18f-1 Election.
Backup
Withholding
Accounts
submitted without a correct, certified taxpayer identification number (TIN) or, alternatively, a correctly
completed and currently effective IRS Form W-8 (for non-resident aliens) or Form W-9 (for U.S. persons including resident aliens) accompanying
the registration information, generally will be subject to backup withholding.
Each
Invesco Fund, and other payers, generally must withhold 24% of reportable dividends (whether paid in
cash or reinvested in additional Invesco Fund shares), including exempt-interest dividends, in the case of any shareholder who fails to
provide the Invesco Funds with a TIN and a certification that he is not subject to backup withholding.
An
investor is subject to backup withholding if:
1.
The investor fails to furnish a correct TIN to the Invesco Fund;
2.
the IRS notifies the Invesco Fund that the investor furnished an incorrect TIN;
3.
the investor or the Invesco Fund is notified by the IRS that the investor is subject to backup withholding because the investor failed
to report all of the interest and dividends on such investor’s tax return (for reportable interest and dividends only);
4.
the investor fails to certify to the Invesco Fund that the investor is not subject to backup withholding under (3) above (for reportable
interest and dividend accounts opened after 1983 only); or
5.
the investor does not certify his TIN. This applies only to non-exempt mutual fund accounts opened after 1983.
Interest
and dividend payments are subject to backup withholding in all five situations discussed above. Redemption
proceeds are subject to backup withholding only if (1), (2) or (5) above applies.
Certain
payees and payments are exempt from backup withholding and information reporting. Invesco or the
Transfer Agent will not provide Form 1099 to those payees.
Investors
should contact the IRS if they have any questions concerning withholding.
IRS
Penalties. Investors who do not supply the Invesco Funds with a
correct TIN will be subject to a $50 penalty imposed by the IRS unless such failure is due to reasonable cause and not willful neglect.
If an investor falsifies information on this form or makes any other false statement resulting in no backup withholding on an account
which should be subject to backup withholding, such investor may be subject to a $500 penalty imposed by the IRS and to certain criminal
penalties including fines and/or imprisonment.
Nonresident
Aliens. Nonresident alien individuals and foreign entities with
a valid Form W-8 are not subject to the backup withholding previously discussed. The Form W-8 generally remains in effect for a period
starting on the date the Form is signed and ending on the last day of the third succeeding calendar year. Such shareholders may, however,
be subject to federal income tax withholding at a 30% rate on ordinary income dividends and other distributions. Under applicable treaty
law, residents of treaty countries may qualify for a reduced rate of withholding or a withholding exemption. Nonresident alien individuals
and some foreign entities failing to provide a valid Form W-8 may be subject to backup withholding and Form 1099 reporting.
L-20
APPENDIX
M - TOTAL SALES CHARGES
The
following chart reflects the total sales charges paid in connection with the sale of Class A shares of each
Fund and the amount retained by Invesco Distributors for the last three fiscal years, or periods, as applicable, ended December 31:
|
|
2022
|
2021
|
2020
| |||
|
|
Sales
Charges |
Amount
Retained |
Sales
Charges |
Amount
Retained |
Sales
Charges |
Amount
Retained |
|
Invesco
Active Allocation Fund |
$1,472,310
|
$217,464
|
$1,634,601
|
$246,680
|
$1,803,417
|
$265,673
|
|
Invesco
Convertible Securities Fund |
410,766
|
52,279
|
971,434
|
126,192
|
689,728
|
89,922
|
|
Invesco
Income Advantage International Fund |
14,066
|
2,474
|
27,523
|
4,735
|
23,456
|
3,672
|
|
Invesco
Income Allocation Fund |
265,946
|
26,397
|
510,388
|
49,942
|
518,561
|
67,797
|
|
Invesco
International Diversified Fund |
592,926
|
89,955
|
833,319
|
122,764
|
729,138
|
113,192
|
|
Invesco
Main Street Mid Cap Fund®
|
802,635
|
121,274
|
925,871
|
151,822
|
721,743
|
117,207
|
|
Invesco
Main Street Small Cap Fund®
|
499,594
|
77,607
|
634,267
|
96,084
|
366,937
|
63,283
|
|
Invesco
Quality Income Fund |
235,768
|
26,289
|
437,938
|
48,110
|
386,619
|
38,819
|
|
Invesco
Select Risk: Conservative Investor Fund |
233,903
|
38,986
|
344,266
|
62,827
|
277,289
|
50,498
|
|
Invesco
Select Risk: Growth Investor Fund |
1,013,631
|
110,201
|
1,105,474
|
130,500
|
1,162,304
|
127,095
|
|
Invesco
Select Risk: High Growth Investor Fund |
854,399
|
126,643
|
930,625
|
138,052
|
1,032,509
|
151,738
|
|
Invesco
Select Risk: Moderate Investor Fund |
1,450,889
|
229,904
|
1,660,125
|
253,205
|
1,667,152
|
257,433
|
|
Invesco
Select Risk: Moderately Conservative Investor
Fund
|
221,826
|
29,302
|
302,634
|
40,044
|
279,202
|
35,836
|
|
Invesco
Small Cap Growth Fund |
182,660
|
22,733
|
269,152
|
31,769
|
173,590
|
22,456
|
|
|
|
|
|
|
|
|
The
contingent deferred sales charges paid by certain shareholders
of the Funds and retained by Invesco Distributors for the last
three fiscal years or periods, as applicable, ended December 31 is reflected below:
|
|
2022
|
2022
|
2021
|
2021
|
2020
|
2020
|
|
Fund
|
Class
A |
Class
C |
Class
A |
Class
C |
Class
A |
Class
C |
|
Invesco
Active Allocation Fund |
$11,854
|
$6,245
|
$11,255
|
$9,326
|
$2,152
|
$12,279
|
|
Invesco
Convertible Securities Fund |
7,569
|
1,146
|
2,769
|
3,566
|
249
|
1,748
|
|
Invesco
Income Advantage
International
Fund |
10
|
94
|
2,038
|
41
|
87
|
48
|
|
Invesco
Income Allocation Fund |
71,881
|
235
|
34,072
|
1,388
|
45,136
|
1,655
|
|
Invesco
International Diversified Fund |
8,145
|
5,321
|
8,487
|
5,961
|
5,889
|
8,796
|
|
Invesco
Main Street Mid Cap Fund®
|
6,943
|
1,138
|
1,635
|
1,854
|
514
|
4,480
|
|
Invesco
Main Street Small Cap Fund®
|
795
|
1,160
|
1,635
|
1,854
|
—
|
1,423
|
|
Invesco
Quality Income Fund |
649
|
625
|
28,116
|
4,285
|
4,960
|
2,679
|
|
Invesco
Select Risk: Conservative
Investor
Fund |
11,587
|
1,870
|
9,019
|
1,870
|
2,079
|
1,247
|
|
Invesco
Select Risk: Growth Investor
Fund
|
16,523
|
2,592
|
24,123
|
2,206
|
11,822
|
2,295
|
|
Invesco
Select Risk: High Growth
Investor
Fund |
6,381
|
1,312
|
5,874
|
3,446
|
816
|
4,664
|
|
Invesco
Select Risk: Moderate Investor
Fund
|
37,250
|
4,101
|
30,883
|
5,579
|
11,631
|
13,780
|
|
Invesco
Select Risk: Moderately
Conservative
Investor Fund |
13,789
|
2,124
|
9,528
|
1,386
|
15,089
|
1,852
|
|
Invesco
Small Cap Growth Fund |
169
|
141
|
1,218
|
316
|
115
|
253
|
|
|
|
|
|
|
|
|
M-1
A
list of amounts paid by each class of shares to Invesco Distributors pursuant to the Plan for the fiscal year
or periods, as applicable, ended December 31, 2022 follows:
|
Fund
|
Class
A |
Class
C Shares |
Class
R Shares |
Class
S Shares |
Investor
Class Shares |
|
Invesco
Active Allocation Fund |
$3,904,111
|
$1,917,657
|
$684,174
|
N/A
|
N/A
|
|
Invesco
Convertible Securities Fund |
1,377,947
|
297,388
|
N/A
|
N/A
|
N/A
|
|
Invesco
Income Advantage International Fund |
137,883
|
10,228
|
7,971
|
N/A
|
N/A
|
|
Invesco
Income Allocation Fund |
1,021,267
|
377,432
|
21,091
|
N/A
|
N/A
|
|
Invesco
International Diversified Fund |
2,430,160
|
1,114,779
|
684,040
|
N/A
|
N/A
|
|
Invesco
Main Street Mid Cap Fund®
|
4,553,143
|
770,384
|
769,088
|
N/A
|
N/A
|
|
Invesco
Main Street Small Cap Fund®
|
849,477
|
341,214
|
248,829
|
N/A
|
N/A
|
|
Invesco
Quality Income Fund |
1,431,944
|
240,836
|
107,985
|
N/A
|
N/A
|
|
Invesco
Select Risk: Conservative Investor Fund |
742,836
|
459,402
|
216,622
|
N/A
|
N/A
|
|
Invesco
Select Risk: Growth Investor Fund |
2,103,161
|
430,694
|
115,497
|
$29,887
|
N/A
|
|
Invesco
Select Risk: High Growth Investor Fund |
1,470,224
|
819,778
|
368,304
|
N/A
|
N/A
|
|
Invesco
Select Risk: Moderate Investor Fund |
3,626,537
|
1,836,326
|
689,705
|
32,371
|
N/A
|
|
Invesco
Select Risk: Moderately Conservative Investor Fund |
692,388
|
191,252
|
42,885
|
2,565
|
N/A
|
|
Invesco
Small Cap Growth Fund |
1,612,775
|
92,508
|
365,222
|
N/A
|
$373,788
|
|
|
|
|
|
|
|
For
the fiscal year ended December 31, 2022, there were unreimbursed distribution-related expenses with respect
to the Funds:
|
Fund
|
Class
A Shares |
|
Invesco
Active Allocation Fund |
$530,187
|
|
Invesco
International Diversified Fund |
$137,198
|
|
Invesco
Main Street Small Cap Fund® |
$20,080
|
|
Invesco
Select Risk: Conservative Investor Fund |
$820,492
|
|
Invesco
Select Risk: High Growth Investor Fund |
$296,449
|
|
Fund
|
Class
C Shares |
|
Invesco
Convertible Securities Fund |
$994
|
|
Invesco
Quality Income Fund |
$143,733
|
|
Invesco
Small Cap Growth Fund |
$55,892
|
N-1
APPENDIX
O - ALLOCATION OF ACTUAL FEES PAID PURSUANT TO DISTRIBUTION PLANS
An
estimate by category of the allocation of actual fees paid by Class A shares of the Funds during the fiscal
year or periods, as applicable, ended December 31, 2022, follows:
|
|
Advertising
|
Printing
&
Mailing |
Seminars
|
Underwriters
Compensation
|
Dealers
Compensation
|
Personnel
|
Travel
Relating
to
Marketing
|
|
Invesco
Active Allocation Fund |
$0
|
$0
|
$0
|
$0
|
$3,904,111
|
$0
|
$0
|
|
Invesco
Convertible Securities Fund |
0
|
0
|
0
|
0
|
1,377,947
|
0
|
0
|
|
Invesco
Income Advantage International Fund |
0
|
0
|
0
|
0
|
137,883
|
0
|
0
|
|
Invesco
Income Allocation Fund |
0
|
0
|
0
|
0
|
1,021,267
|
0
|
0
|
|
Invesco
International Diversified Fund |
0
|
0
|
0
|
0
|
2,430,160
|
0
|
0
|
|
Invesco
Main Street Mid Cap Fund®
|
0
|
0
|
0
|
0
|
4,553,143
|
0
|
0
|
|
Invesco
Main Street Small Cap Fund®
|
0
|
0
|
0
|
0
|
849,477
|
0
|
0
|
|
Invesco
Quality Income Fund |
0
|
0
|
0
|
0
|
1,431,944
|
0
|
0
|
|
Invesco
Select Risk: Conservative Investor Fund |
0
|
0
|
0
|
0
|
742,836
|
0
|
0
|
|
Invesco
Select Risk: Growth Investor Fund |
0
|
0
|
0
|
0
|
2,103,161
|
0
|
0
|
|
Invesco
Select Risk: High Growth Investor Fund |
0
|
0
|
0
|
0
|
1,470,224
|
0
|
0
|
|
Invesco
Select Risk: Moderate Investor Fund |
0
|
0
|
0
|
0
|
3,626,537
|
0
|
0
|
|
Select
Risk: Moderately Conservative Investor Fund |
0
|
0
|
0
|
0
|
692,388
|
0
|
0
|
|
Invesco
Small Cap Growth Fund |
0
|
0
|
0
|
0
|
1,612,775
|
0
|
0
|
An
estimate by category of the allocation of actual fees paid by Class
C shares of the Funds during the fiscal year ended December 31,
2022, follows:
|
|
Advertising
|
Printing
&
Mailing |
Seminars
|
Underwriters
Compensation
|
Dealers
Compensation
|
Personnel
|
Travel
Relating
to
Marketing
|
|
Invesco
Active Allocation Fund |
$2,046
|
$1,385
|
$1,370
|
$153,899
|
$1,739,774
|
$18,727
|
$456
|
|
Invesco
Convertible Securities Fund |
105
|
68
|
70
|
7,970
|
288,134
|
1,018
|
23
|
|
Invesco
Income Advantage International Fund |
11
|
7
|
7
|
792
|
9,313
|
96
|
2
|
|
Invesco
Income Allocation Fund |
120
|
79
|
81
|
9,218
|
366,772
|
1,135
|
27
|
|
Invesco
International Diversified Fund |
708
|
468
|
476
|
54,524
|
1,051,728
|
6,717
|
158
|
|
Invesco
Main Street Mid Cap Fund®
|
700
|
474
|
470
|
52,732
|
709,436
|
6,416
|
156
|
|
Invesco
Main Street Small Cap Fund®
|
373
|
250
|
248
|
28,037
|
308,796
|
3,427
|
83
|
|
Invesco
Quality Income Fund |
221
|
148
|
149
|
16,802
|
221,414
|
2,053
|
49
|
|
Invesco
Select Risk: Conservative Investor Fund |
532
|
358
|
362
|
40,833
|
412,210
|
4,989
|
118
|
|
Invesco
Select Risk: Growth Investor Fund |
574
|
392
|
384
|
42,716
|
381,331
|
5,169
|
128
|
|
Invesco
Select Risk: High Growth Investor Fund |
989
|
673
|
661
|
73,972
|
734,284
|
8,978
|
221
|
|
Invesco
Select Risk: Moderate Investor Fund |
2,289
|
1,545
|
1,515
|
170,271
|
1,639,483
|
20,712
|
511
|
|
Select
Risk: Moderately Conservative Investor Fund |
179
|
124
|
125
|
13,877
|
175,224
|
1,683
|
40
|
|
Invesco
Small Cap Growth Fund |
65
|
38
|
44
|
5,445
|
86,200
|
701
|
15
|
An
estimate by category of the allocation of actual fees paid by Class
R Shares of the Funds during the fiscal year ended December 31,
2022, follows:
|
|
Advertising
|
Printing
&
Mailing |
Seminars
|
Underwriters
Compensation
|
Dealers
Compensation
|
Personnel
|
Travel
Relating
to
Marketing
|
|
Invesco
Active Allocation Fund |
$1,185
|
$805
|
$788
|
$29,404
|
$641,022
|
$10,706
|
$264
|
|
Invesco
Income Advantage International Fund |
1
|
0
|
0
|
17
|
7,947
|
6
|
0
|
|
Invesco
Income Allocation Fund |
2
|
1
|
1
|
53
|
21,015
|
19
|
0
|
|
Invesco
International Diversified Fund |
652
|
430
|
441
|
16,884
|
659,236
|
6,252
|
145
|
|
Invesco
Main Street Mid Cap Fund®
|
574
|
384
|
385
|
14,537
|
747,744
|
5,336
|
128
|
|
Invesco
Main Street Small Cap Fund®
|
89
|
62
|
59
|
2,169
|
245,651
|
779
|
20
|
|
Invesco
Quality Income Fund |
64
|
42
|
42
|
1,620
|
105,603
|
600
|
14
|
|
Invesco
Select Risk: Conservative Investor Fund |
215
|
145
|
141
|
5,283
|
208,864
|
1,926
|
48
|
|
Invesco
Select Risk: Growth Investor Fund |
88
|
61
|
56
|
2,040
|
112,502
|
730
|
20
|
|
Invesco
Select Risk: High Growth Investor Fund |
458
|
315
|
303
|
11,201
|
351,875
|
4,050
|
102
|
|
Invesco
Select Risk: Moderate Investor Fund |
888
|
598
|
588
|
22,092
|
657,265
|
8,076
|
198
|
O-1
|
|
Advertising
|
Printing
&
Mailing |
Seminars
|
Underwriters
Compensation
|
Dealers
Compensation
|
Personnel
|
Travel
Relating
to
Marketing
|
|
Select
Risk: Moderately Conservative Investor Fund |
7
|
4
|
5
|
178
|
42,622
|
67
|
2
|
|
Invesco
Small Cap Growth Fund |
49
|
31
|
33
|
1,306
|
363,301
|
491
|
11
|
An
estimate by category of the allocation of actual fees paid by Class
S shares of the Funds for the fiscal year ended December 31, 2022,
follows:
|
|
Advertising
|
Printing
&
Mailing |
Seminars
|
Underwriters
Compensation
|
Dealers
Compensation
|
Personnel
|
Travel
Relating
to
Marketing
|
|
Invesco
Select Risk: Growth Investor Fund |
$8
|
$5
|
$5
|
$0
|
$29,800
|
$67
|
$2
|
|
Invesco
Select Risk: Moderate Investor Fund |
12
|
8
|
8
|
0
|
32,229
|
111
|
3
|
|
Invesco
Select Risk: Moderately Conservative Investor Fund |
1
|
1
|
1
|
0
|
2,551
|
11
|
0
|
An
estimate by category of the allocation of actual fees paid by Investor
Class shares of the Funds for the fiscal year ended December 31,
2022, follows:
|
|
Advertising
|
Printing
&
Mailing |
Seminars
|
Underwriters
Compensation
|
Dealers
Compensation
|
Personnel
|
Travel
Relating
to
Marketing
|
|
Invesco
Small Cap Growth Fund |
$5,900
|
$3,797
|
$4,033
|
$0
|
$217,732
|
$83,362
|
$58,964
|
O-2
PART
C. OTHER INFORMATION
Item
28. Exhibits.
|
Exhibit
Number
|
Description
| ||
|
a
|
|
|
|
|
b
|
|
|
|
|
c
|
|
|
Articles
II, VI, VII, VIII and IX of the Fifth Amended and Restated Agreement and Declaration of Trust and Articles IV,
V
and VI of the Bylaws, define rights of holders of shares.
|
|
d
|
(1)
|
(a)
|
|
|
d
|
(1)
|
(b)
|
|
|
d
|
(1)
|
(c)
|
|
|
d
|
(1)
|
(d)
|
|
|
d
|
(1)
|
(e)
|
|
|
d
|
(1)
|
(f)
|
|
|
d
|
(2)
|
(a)
|
|
|
d
|
(2)
|
(b)
|
|
|
d
|
(2)
|
(c)
|
|
|
d
|
(2)
|
(d)
|
|
|
d
|
(2)
|
(e)
|
|
|
d
|
(2)
|
(f)
|
|
|
d
|
(3)
|
(a)
|
|
|
d
|
(3)
|
(b)
|
|
|
Exhibit
Number
|
Description
| ||
|
d
|
(3)
|
(c)
|
|
|
d
|
(3)
|
(d)
|
|
|
d
|
(3)
|
(e)
|
|
|
d
|
(3)
|
(f)
|
|
|
d
|
(3)
|
(g)
|
|
|
d
|
(3)
|
(h)
|
|
|
d
|
(3)
|
(i)
|
|
|
d
|
(3)
|
(j)
|
|
|
d
|
(3)
|
(k)
|
|
|
d
|
(3)
|
(l)
|
|
|
d
|
(3)
|
(m)
|
|
|
d
|
(3)
|
(n)
|
|
|
d
|
(4)
|
(a)
|
|
|
d
|
(4)
|
(b)
|
|
|
d
|
(4)
|
(c)
|
|
|
d
|
(4)
|
(d)
|
|
|
d
|
(4)
|
(e)
|
|
|
d
|
(4)
|
(f)
|
|
|
d
|
(4)
|
(g)
|
|
|
d
|
(4)
|
(h)
|
|
|
d
|
(4)
|
(i)
|
|
|
d
|
(4)
|
(j)
|
|
|
Exhibit
Number
|
Description
| ||
|
d
|
(4)
|
(k)
|
|
|
d
|
(4)
|
(l)
|
|
|
d
|
(4)
|
(m)
|
|
|
d
|
(4)
|
(n)
|
|
|
d
|
(5)
|
(a)
|
|
|
d
|
(5)
|
(b)
|
|
|
d
|
(5)
|
(c)
|
|
|
d
|
(5)
|
(d)
|
|
|
e
|
(1)
|
(a)
|
|
|
e
|
(1)
|
(b)
|
|
|
e
|
(1)
|
(c)
|
|
|
e
|
(1)
|
(d)
|
|
|
e
|
(1)
|
(e)
|
|
|
e
|
(1)
|
(f)
|
|
|
e
|
(1)
|
(g)
|
|
|
e
|
(1)
|
(h)
|
|
|
e
|
(1)
|
(i)
|
|
|
e
|
(1)
|
(j)
|
|
|
e
|
(1)
|
(k)
|
|
|
e
|
(1)
|
(l)
|
|
|
e
|
(1)
|
(m)
|
|
|
e
|
(1)
|
(n)
|
|
|
Exhibit
Number
|
Description
| ||
|
e
|
(1)
|
(o)
|
|
|
e
|
(2)
|
|
|
|
e
|
(3)
|
|
|
|
f
|
(1)
|
|
|
|
f
|
(2)
|
(a)
|
|
|
f
|
(2)
|
(b)
|
|
|
g
|
(1)
|
|
|
|
g
|
(2)
|
|
|
|
g
|
(3)
|
|
|
|
h
|
(1)
|
(a)
|
|
|
h
|
(1)
|
(b)
|
|
|
h
|
(2)
|
(a)
|
|
|
h
|
(2)
|
(b)
|
|
|
h
|
(2)
|
(c)
|
|
|
h
|
(2)
|
(d)
|
|
|
h
|
(2)
|
(e)
|
|
|
h
|
(2)
|
(f)
|
|
|
h
|
(3)
|
|
|
|
h
|
(4)
|
|
|
|
h
|
(5)
|
|
|
|
h
|
(6)
|
|
|
|
h
|
(7)
|
|
|
|
h
|
(8)
|
|
|
|
Exhibit
Number
|
Description
| ||
|
i
|
|
|
Legal
Opinion - None |
|
j
|
|
|
|
|
k
|
|
|
Omitted
Financial Statements – Not Applicable.
|
|
l
|
(1)
|
(a)
|
|
|
l
|
(1)
|
(b)
|
|
|
l
|
(1)
|
(c)
|
|
|
l
|
(1)
|
(d)
|
|
|
l
|
(1)
|
(e)
|
|
|
l
|
(1)
|
(f)
|
|
|
l
|
(1)
|
(g)
|
|
|
l
|
(1)
|
(h)
|
|
|
l
|
(1)
|
(i)
|
|
|
l
|
(1)
|
(j)
|
|
|
m
|
(1)
|
(a)
|
|
|
m
|
(1)
|
(b)
|
|
|
m
|
(1)
|
(c)
|
|
|
m
|
(1)
|
(d)
|
|
|
m
|
(1)
|
(e)
|
|
|
m
|
(1)
|
(f)
|
|
|
m
|
(1)
|
(g)
|
|
|
m
|
(2)
|
(a)
|
|
(1)
Incorporated
by reference to PEA No. 50, filed on December 28, 2001.
(2)
Incorporated
by reference to PEA No. 56, filed on April 30, 2004.
(3)
Incorporated
by reference to PEA No. 59, filed on August 11, 2005.
(4)
Incorporated
by reference to PEA No. 62, filed on November 1, 2005.
(5)
Incorporated
by reference to PEA No. 66, filed on April 26, 2007.
(6)
Incorporated
by reference to PEA No. 67, filed on February 11, 2008.
(7)
Incorporated
by reference to PEA No. 70, filed on April 28, 2009.
(8)
Incorporated
by reference to PEA No. 77, filed on September 24, 2009.
(9)
Incorporated
by reference to PEA No. 89, filed on July 26, 2010.
(10)
Incorporated
by reference to PEA No. 94, filed on April 26, 2011.
(11)
Incorporated
by reference to PEA No. 112, filed on April 24, 2014.
(12)
Incorporated
by reference to PEA No. 124, filed on September 26, 2014.
(13)
Incorporated
by reference to PEA No. 126, filed on April 28, 2015.
(14)
Incorporated
by reference to PEA No. 128, filed on April 27, 2016.
(15)
Incorporated
by reference to PEA No. 130, filed on March 31, 2017.
(16)
Incorporated
by reference to PEA No. 139, filed on April 26, 2018.
(17)
Incorporated
by reference to PEA No. 145, filed on April 29, 2019.
(18)
Incorporated
by reference to PEA No. 149, filed on August 27, 2019.
(19)
Incorporated
by reference to Post-Effective Amendment No. 137 to AIM Counselor Series Trust (Invesco Counselor Series Trust) Registration Statement
on Form N-1A on August 20, 2020.
(20)
Incorporated
by reference to Post-Effective Amendment No. 139 to AIM Counselor Series Trust (Invesco Counselor Series Trust) Registration Statement
on Form N-1A on October 9, 2020.
(21)
Incorporated
by reference to Post-Effective Amendment No. 143 to AIM Counselor Series Trust (Invesco Counselor Series Trust) Registration Statement
on Form N-1A on December 18, 2020.
(22)
Incorporated
by reference to Post-Effective Amendment No. 191 to AIM Investment Funds (Invesco Investment Funds) Registration Statement on Form N-1A
on February 22, 2021.
(23)
Incorporated
by reference to Post-Effective Amendment No. 141 to AIM Equity Funds (Invesco Equity Funds) Registration Statement on Form N-1A on February
25, 2021.
(24)
Incorporated
by reference to Post-Effective Amendment No. 192 to AIM Investment Funds (Invesco Investment Funds) Registration Statement on Form N-1A
on March 29, 2021.
(25)
Incorporated
by reference to PEA No. 163, filed on April 29, 2021.
(26)
Incorporated
by reference to Post-Effective Amendment No. 104 to AIM Investment Securities Funds (Invesco Investment Securities Funds) Registration
Statement on June 28, 2021.
(27)
Incorporated
by reference to PEA No. 165, filed on July 14, 2021.
(28)
Incorporated
by reference to Post-Effective Amendment No. 85 to AIM Variable Insurance Funds (Invesco Variable Insurance Funds) Registration Statement
on September 7, 2021.
(29)
Incorporated
by reference to Post-Effective Amendment No. 193 to AIM Investment Funds (Invesco Investment Funds) Registration Statement on Form N-1A
on February 25, 2022.
(30)
Incorporated
by reference to PEA No. 166, filed on April 28, 2022.
(31)
Incorporated
by reference to Post-Effective Amendment No. 105 to AIM Investment Securities Funds (Invesco Investment Securities Funds) Registration
Statement on Form N-1A, filed on June 27, 2022.
(32)
Incorporated
by reference to Post-Effective Amendment No. 174 to AIM Counselor Series Trust (Invesco Counselor Series Trust) Registration
Statement on Form N-1A, filed on December 15, 2022.
(33)
Incorporated
by reference to Post-Effective Amendment No. 195 to AIM Investment Funds (Invesco Investment Funds) Registration Statement on Form N-1A
on February 28, 2023.
(34)
Incorporated
by reference to Post-Effective Amendment No. 121 to AIM Sector Funds (Invesco Sector Funds) Registration Statement on Form N-1A,
filed on August 25, 2022.
(*)
Filed
herewith electronically.
Item
29. Persons Controlled by or Under Common Control with the Fund.
Invesco
V.I. Balanced-Risk Allocation Fund, a series of the Registrant, wholly owns and controls Invesco Cayman Commodity Fund
IV Ltd., a company organized under the laws of the Cayman Islands. The Invesco Cayman Commodity Fund IV Ltd.'s financial statements are
and will be included on a consolidated basis in the Invesco V.I. Balanced-Risk Allocation Fund's annual and semi-annual reports to shareholders.
Invesco
V.I. Global Strategic Income Fund, a series of the Registrant, wholly owns and controls Invesco V.I. Global Strategic Income
Fund (Cayman) Ltd., a company organized under the laws of the Cayman Islands. The Invesco V.I. Global Strategic Income Fund (Cayman) Ltd.'s
financial statements are and will be included on a consolidated basis in the Invesco V.I. Global Strategic Income Fund's annual and semi-annual
reports to shareholders.
Item
30. Indemnification.
Indemnification
provisions for officers, trustees, and employees of the Registrant are set forth in Article VIII of the Registrant’s Fifth
Amended and Restated Agreement and Declaration of Trust and Article VIII of its Bylaws and are hereby incorporated by reference. See Items
28(a) and (b) above. Under the Fifth Amended and Restated Agreement and Declaration of Trust, effective as of September 20, 2022, (i)
Trustees or officers, when acting in such capacity, shall not be personally liable for any act, omission or obligation of the Registrant
or any Trustee or officer except by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved
in the conduct of his office with the Trust; (ii) every Trustee, officer, employee or agent of the Registrant shall be indemnified to
the fullest extent permitted under the Delaware Statutory Trust Act, the Registrant’s Bylaws and other applicable law; (iii) in
case any shareholder or former shareholder of the Registrant shall be held to be personally liable solely by reason of his being or having
been a shareholder of the Registrant or any portfolio or class and not because of his acts or omissions or for some other reason, the
shareholder or former shareholder (or his heirs, executors, administrators or other legal representatives, or, in the case of a corporation
or other entity, its corporate or general successor) shall be entitled, out of the assets belonging to the applicable portfolio (or allocable
to the applicable class), to be held harmless from and indemnified against all loss and expense arising from such liability in accordance
with the Bylaws and applicable law. The Registrant, on behalf of the affected portfolio (or class), shall upon request by the shareholder,
assume the defense of any such claim made against the shareholder for any act or obligation of that portfolio (or class).
The
Registrant and other investment companies and their respective officers and trustees are insured under a joint Mutual Fund Directors
and Officers Liability Policy, issued by ICI Mutual Insurance Company and certain other domestic insurers, with limits up to $100,000,000
and an additional $50,000,000 of excess coverage (plus an additional $30,000,000 limit that applies to independent directors/trustees
only).
Section
16 of the Master Investment Advisory Agreement between the Registrant and Invesco Advisers, Inc. (Invesco Advisers) provides
that in the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the
part of Invesco Advisers or any of its officers, directors or employees, that InvescoAdvisers shall not be subject to liability to the
Registrant or to any series of the Registrant, or to any shareholder of any series of the Registrant for any act or omission in the course
of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
Any liability of Invesco Advisers to any series of the Registrant shall not automatically impart liability on the part of Invesco Advisers
to any other series of the Registrant. No series of the Registrant shall be liable for the obligations of any other series of the Registrant.
Section
10 of the Master Intergroup Sub-Advisory Contract for Mutual Funds (the Sub-Advisory Contract) between Invesco Advisers,
on behalf of Registrant, and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management
(Japan) Limited, Invesco Canada Ltd., Invesco Hong Kong Limited and Invesco Senior Secured Management, Inc. and separate Sub-Advisory
Agreements with each of Invesco Capital Management LLC, Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (each
a Sub-Adviser, collectively the Sub-Advisers) provides that the Sub-Adviser shall not be liable for any costs or liabilities arising from
any error of judgment or mistake of law or any loss suffered by any series of the Registrant or the Registrant in connection with the
matters to which the Sub-Advisory Contract relates except a loss resulting from willful misfeasance, bad faith or gross negligence on
the part of the Sub-Adviser in the performance by the Sub-Adviser of its duties or from reckless disregard by the Sub-Adviser of its obligations
and duties under the Sub-Advisory Contract.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933 (the Act) may be permitted to trustees, officers and
controlling persons of the Registrant pursuant to the foregoing provisions or otherwise, the Registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a trustee, officer or controlling person of the Registrant in the successful defense of any action suit or proceeding) is asserted
by such trustee, officer or controlling person in connection with the securities being registered, hereby, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication
of such issue.
Item
31. Business and Other Connections of the Investment Adviser.
The
only employment of a substantial nature of Invesco’s directors and officers is with Invesco and its affiliated companies. For information
as to the business, profession, vocation or employment of a substantial nature of each of the officers and directors of Invesco Asset
Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Canada Ltd., Invesco
Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Capital Management LLC, Invesco Asset Management (India) Private Limited
and OppenheimerFunds, Inc. (each a Sub-Adviser, collectively the Sub-Advisers) reference is made to Form ADV filed under the Investment
Advisers Act of 1940 by each Sub-Adviser herein incorporated by reference. Reference is also made to the discussion under the caption
“Fund Management – The Adviser(s)” in the Prospectus which comprises Part A of this Registration Statement, and to
the discussion under the caption “Management of the Trust” of the Statement of Additional Information which comprises Part
B of this Registration Statement, and to Item 32(b) of this Part C.
Item
32. Principal Underwriters.
(a)
Invesco Distributors, Inc., the Registrant’s principal underwriter, also acts as a principal underwriter to the following investment
companies:
AIM
Counselor Series Trust (Invesco Counselor Series Trust)
AIM
Equity Funds (Invesco Equity Funds)
AIM
Funds Group (Invesco Funds Group)
AIM
Growth Series (Invesco Growth Series)
AIM
International Mutual Funds (Invesco International Mutual Funds)
AIM
Investment Funds (Invesco Investment Funds)
AIM
Investment Securities Funds (Invesco Investment Securities Funds)
AIM
Sector Funds (Invesco Sector Funds)
AIM
Tax-Exempt Funds (Invesco Tax-Exempt Funds)
AIM
Treasurer’s Series Trust (Invesco Treasurer’s Series Trust)
AIM
Variable Insurance Funds (Invesco Variable Insurance Funds)
Invesco
Dynamic Credit Opportunity Fund
Invesco
Senior Loan Fund
Invesco
Management Trust
Short-Term
Investments Trust
Invesco
Actively Managed Exchange-Traded Fund Trust
Invesco
Actively Managed Exchange-Traded Commodity Fund Trust
Invesco
Exchange-Traded Fund Trust
Invesco
Exchange-Traded Fund Trust II
Invesco
India Exchange-Traded Fund Trust
Invesco
Exchange-Traded Self-Indexed Fund Trust
(b)
The following are the Officers and Managers of Invesco Distributors, Inc., the Registrant’s underwriter.
|
NAME
AND PRINCIPAL
BUSINESS
ADDRESS* |
POSITIONS
AND OFFICES
WITH
REGISTRANT |
POSITIONS
AND OFFICES
WITH
UNDERWRITER |
|
Rocco
Benedetto |
None
|
Senior
Vice President |
|
David
Borrelli |
None
|
Senior
Vice President |
|
Ken
Brodsky |
None
|
Senior
Vice President |
|
George
Fahey |
None
|
Senior
Vice President |
|
Jay
Fortuna |
None
|
Senior
Vice President |
|
Mark
W. Gregson |
None
|
Chief
Financial Officer,
Financial
& Operations Principal |
|
Trisha
B. Hancock |
None
|
Chief
Compliance Officer &
Senior
Vice President |
|
Clint
Harris |
None
|
President
|
|
John
Hoffman |
None
|
Senior
Vice President |
|
Eliot
Honaker |
None
|
Senior
Vice President |
|
Greg
Ketron |
None
|
Treasurer
|
|
Brian
Kiley |
None
|
Senior
Vice President |
|
Brian
Levitt |
None
|
Senior
Vice President |
|
John
McDonough |
None
|
Director
& Chief Executive Officer |
|
Kevin
Neznek |
None
|
Senior
Vice President |
|
Melanie
Ringold |
Secretary,
Senior Vice President
&
Chief Legal Officer |
Secretary
|
|
Adam
Rochlin |
None
|
Senior
Vice President |
|
Benjamin
Stewart |
None
|
Senior
Vice President |
|
NAME
AND PRINCIPAL
BUSINESS
ADDRESS* |
POSITIONS
AND OFFICES
WITH
REGISTRANT |
POSITIONS
AND OFFICES
WITH
UNDERWRITER |
|
Paul
E. Temple |
None
|
Senior
Vice President |
|
Ben
Utt |
None
|
Executive
Vice President |
|
Terry
Gibson Vacheron |
None
|
Executive
Vice President |
|
Gary
K. Wendler |
Assistant
Vice President |
Senior
Vice President, Director,
Marketing
Research & Analysis |
|
Donna
White |
None
|
Senior
Vice President |
|
Crissie
Wisdom |
Anti-Money
Laundering Compliance
Officer
|
Anti-Money
Laundering Compliance
Officer
|
|
John
M. Zerr |
Senior
Vice President |
Senior
Vice President |
*
The
principal business address for all directors and executive officers is Invesco Distributors, Inc., 11 Greenway Plaza, Suite 1000, Houston,
Texas 77046-1173.
(c)
Not applicable.
Item
33. Location of Accounts and Records.
Invesco
Advisers, Inc., 1331 Spring Street NW, Suite 2500, Atlanta, Georgia 30309, maintains physical possession of each such account,
book or other document of the Registrant at the Registrant’s principal executive offices, 11 Greenway Plaza, Suite 1000, Houston,
Texas 77046-1173, except for those maintained at its Atlanta offices at the address listed above or at its Louisville, Kentucky offices,
400 West Market Street, Suite 3300, Louisville, Kentucky 40202 and except for those relating to certain transactions in portfolio securities
that are maintained by the Registrant’s Custodian, State Street Bank and Trust Company, 225 Franklin Street, Boston, Massachusetts
02110, and the Registrant’s Transfer Agent and Dividend Paying Agent, Invesco Investment Services, Inc., P.O. Box 219078, Kansas
City, Missouri 64121-9078.
Records
may also be maintained at the offices of:
|
|
Invesco
Asset Management Deutschland GmbH
An
der Welle 5, 1st Floor
Frankfurt,
Germany 60322 |
|
|
Invesco
Asset Management Ltd.
Perpetual
Park
Perpetual
Park Drive
Henley-on-Thames
Oxfordshire,
RG91HH
United
Kingdom |
|
|
Invesco
Asset Management (Japan) Limited
Roppongi
Hills Mori Tower 14F
6-10-1
Roppongi
Minato-ku,
Tokyo 106-6114 Japan |
|
|
Invesco
Hong Kong Limited
41/F,
Champion Tower
Three
Garden Road, Central
Hong
Kong |
|
|
Invesco
Senior Secured Management, Inc.
225
Liberty Street
New
York, NY 10281 |
|
|
Invesco
Canada Ltd.
120
Bloor Street East
Suite
700
Toronto,
Ontario
Canada
M4W 1B7 |
|
|
Invesco
Capital Management LLC
3500
Lacey Road, Suite 700
Downers
Grove, IL 60515 |
|
|
Invesco
Asset Management (India) Private Limited
3rd
Floor, GYS Infinity, Subhash Road
Paranjpe
B Scheme, Ville Parle (East)
Mumbai
– 400 057, India |
|
|
OppenheimerFunds,
Inc.
225
Liberty Street
New
York, NY 10281 |
Item
34. Management Services.
None.
Item
35. Undertakings.
Not
applicable.
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant certifies
that it meets all of the requirements for effectiveness of this Registration Statement under Rule 485(b) under the Securities Act of 1933,
as amended, and has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, duly authorized,
in the city of Houston, Texas, on the 27th day of April, 2023.
|
AIM
GROWTH SERIES
(INVESCO
GROWTH SERIES) | |
|
By:
|
/s/
Sheri Morris |
|
|
Sheri
Morris |
|
Title:
|
President
|
Pursuant
to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed below by the following
persons in the capacities indicated on the dates indicated.
|
SIGNATURE
|
TITLE
|
DATE
|
|
/s/
Sheri Morris |
President
|
April
27, 2023 |
|
(Sheri
Morris) |
(Principal
Executive Officer) |
|
|
/s/
Beth Ann Brown*** |
Chair
and Trustee |
April
27, 2023 |
|
(Beth
Ann Brown) |
|
|
|
/s/
Martin L. Flanagan* |
Vice
Chair and Trustee |
April
27, 2023 |
|
(Martin
L. Flanagan) |
|
|
|
/s/
Cynthia Hostetler* |
Trustee
|
April
27, 2023 |
|
(Cynthia
Hostetler) |
|
|
|
/s/
Eli Jones* |
Trustee
|
April
27, 2023 |
|
(Eli
Jones) |
|
|
|
/s/
Elizabeth Krentzman*** |
Trustee
|
April
27, 2023 |
|
(Elizabeth
Krentzman) |
|
|
|
/s/
Anthony J. LaCava, Jr.** |
Trustee
|
April
27, 2023 |
|
(Anthony
J. LaCava, Jr.) |
|
|
|
/s/
Prema Mathai-Davis* |
Trustee
|
April
27, 2023 |
|
(Prema
Mathai-Davis) |
|
|
|
/s/
Joel W. Motley*** |
Trustee
|
April
27, 2023 |
|
(Joel
W. Motley) |
|
|
|
/s/
Teresa M. Ressel* |
Trustee
|
April
27, 2023 |
|
(Teresa
M. Ressel) |
|
|
|
/s/
Robert C. Troccoli* |
Trustee
|
April
27, 2023 |
|
(Robert
C. Troccoli) |
|
|
|
/s/
Daniel S. Vandivort*** |
Trustee
|
April
27, 2023 |
|
(Daniel
S. Vandivort) |
|
|
|
/s/
Adrien Deberghes |
Vice
President & |
April
27, 2023 |
|
Adrien
Deberghes |
Treasurer
(Principal
Financial Officer) |
|
|
|
|
|
|
/s/
Sheri Morris |
|
April
27, 2023 |
|
Sheri
Morris |
|
|
|
Attorney-In-Fact
|
|
|