Performance summary – Invesco Balanced-Risk  Retirement Now Fund
For the year ended December 31, 2020, Class A shares of Invesco Balanced-Risk Retirement Now Fund (the Fund), at net asset value (NAV), underperformed the Custom Invesco Balanced-Risk Retirement Now Index.     Your Fund’s long-term performance appears later in this report.
Fund vs. Indexes
Total returns, 12/31/19 to 12/31/20, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares			5.92	%
Class AX Shares			6.06
Class C Shares			5.21
Class CX Shares			5.07
Class R Shares			5.69
Class RX Shares			5.69
Class Y Shares			6.27
Class R5 Shares			6.28
Class R6 Shares			6.28
S&P 500 Indexq (Broad Market Index)			18.40
Custom Invesco Balanced-Risk Retirement Now Index⬛ (Style-Specific Index)			8.67
Custom Invesco Balanced-Risk Allocation Broad Index⬛ (Style-Specific Index)			15.68
Lipper Mixed-Asset Target Today Funds Indext (Peer Group Index)			9.52
Source(s): qRIMES Technologies Corp.; ⬛Invesco, RIMES Technologies Corp.; ◆Lipper Inc.

 

 

Fund Nasdaq Symbols
Class A			IANAX
Class AX			VIRAX
Class C			IANCX
Class CX			VIRCX
Class R			IANRX
Class RX			VIRRX
Class Y			IANYX
Class R5			IANIX
Class R6			IANFX

Bank of Canada cut rates to 0.25%¹ and began weekly asset purchases of Canadian government and corporate bonds at the onset of the recovery. US Treasuries also contributed to IBRA’s performance as the US Federal Reserve cut interest rates to zero² and, like Canada, implemented expanded asset purchases of government and corporate bonds. Australian bonds gained as the Reserve Bank of Australia announced an expansion of the term funding facility to approximately $200 billion Australia dollars at a fixed rate of 25 basis points for three years in order to keep funding costs low and bolster the supply of credit to lenders.³ UK Gilts also aided IBRA’s results as the Bank of England (BoE) cut interest rates from 0.75% to 0.10%⁴ and provided loans directly to businesses. The UK was hit harder by the pandemic than many other developed regions with multiple strict lockdowns leading the BoE to announce in November that it would further boost government bond purchases and would support negative interest rates if necessary. Germany and Japan were absent from the IBRA’s portfolio throughout the year due to the portfolio’s yield skew adjustments. Tactical positioning in bonds benefited from overweight exposure relative to the strategic positioning during the February-March sell-off.

    IBRA’s strategic exposure to developed market equities, obtained through the use of swaps and futures, contributed to its performance for the year. The magnitude of recovery varied across regions, largely depending on sector exposure. US equities were the top contributor due primarily to the high allocation to technology and low energy exposure. US small-cap equities outperformed large-caps due to the late year rally in risky assets as increasing rates of growth and inflation are a good environment for small company stocks. Japanese equities were also a top contributor as investors cheered the election of Yoshihide Suga to the post of prime minister, replacing

 

Shinzo Abe who retired for health reasons. A Suga administration is widely believed to be an extension of the Abe government, thus removing fears of Abe’s policies being reversed. European equities posted subdued, but positive, performance after a second wave of infections reversed the recovery. European markets remain suppressed as lockdown measures remained more restricted while the scale of their fiscal and monetary response also lagged China and the US. UK equities were the sole market to deliver negative returns. The UK was slow to contain the first and second wave of the virus and implemented extensive lockdowns too late, causing the economy to suffer more relative to other countries. The uncertainty around Brexit further compounded losses. IBRA’s tactical positioning in equities contributed to its performance and also provided gains as overweights during the second half of the year proved timely.

    IBRA’s strategic exposure to commodities, obtained through the use of swaps, futures and commodity-linked notes, also added to its performance for the year despite commodity indexes declining. Energy was the sole complex to finish the year negative. IBRA’s diversification within commodities and lower energy exposure helped buffer the losses. Commodities struggled to recover compared to stocks and bonds because prices are based on the current environment, whereas stocks and bonds are priced by discounting future cash flows. Performance across complexes was not uniform as evidenced by gold hitting all-time highs and crude reaching all-time lows, even dipping into negative territory for a brief period. Agriculture was the largest contributor to IBRA’s performance with gains concentrated in grains (soymeal and soybeans) and softs, most notably cotton. The primary catalysts for the broad-based increase in prices included a weakening US dollar and improved demand from China along with some challenges in growing conditions. Precious metals were another top contributor with silver outpacing gold. Seen as a store of value, gold began to rise as economic growth slowed in 2019 and surged to a record high in August on a combination of a weakening US dollar, central bank promises of “lower for longer” policy rates and investor concerns of monetary debasement. Silver benefited for similar reasons along with its crossover use as an industrial metal. Industrial metals prices rose on increased manufacturing activity and demand resulting from projects

related to fiscal stimulus. Exposure to energy detracted from IBRA’s performance due to a combination of falling demand caused by coronavirus (COVID-19) containment efforts and rising supply triggered by an oil price war between Saudi Arabia and Russia. IBRA’s tactical positioning in commodities benefited from its underweight exposure for the majority of the year and overweight exposure during the fourth quarter.

    Please note that IBRA’s strategy is principally implemented with derivative instruments that include futures, commodity-linked notes and total return swaps. Therefore, all or most of the performance of the strategy, both positive and negative, can be attributed to these instruments. Derivatives can be a cost-effective way to gain exposure to asset classes. However, derivatives may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities.

    Thank you for your continued investment in Invesco Balanced-Risk Retirement Now Fund.

 

1	Source: Bank of Canada

 

2	Source: US Federal Reserve

 

3	Source: Reserve Bank of Australia

 

4	Source: Bank of England

 

 

Portfolio manager(s):

Mark Ahnrud

Chris Devine

Scott Hixon

Christian Ulrich

Scott Wolle

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Trust. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

 

Performance summary – Invesco Balanced-Risk  Retirement 2020 Fund For the year ended December 31, 2020, Class A shares of Invesco Balanced-Risk Retirement 2020 Fund (the Fund), at net asset value (NAV), underperformed the Custom Invesco Balanced-Risk Retirement 2020 Index.     Your Fund’s long-term performance appears later in this report.
Fund vs. Indexes
Total returns, 12/31/19 to 12/31/20, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares			5.90	%
Class AX Shares			5.90
Class C Shares			5.14
Class CX Shares			5.03
Class R Shares			5.61
Class RX Shares			5.61
Class Y Shares			6.19
Class R5 Shares			6.15
Class R6 Shares			6.15
S&P 500 Indexq (Broad Market Index)			18.40
Custom Invesco Balanced-Risk Retirement 2020 Index⬛ (Style-Specific Index)			8.60
Custom Invesco Balanced-Risk Allocation Broad Index⬛ (Style-Specific Index)			15.68
Lipper Mixed-Asset Target 2020 Funds Index◆ (Peer Group Index)			12.16
Source(s): qRIMES Technologies Corp.; ⬛ Invesco, RIMES Technologies Corp.; ◆ Lipper Inc.

 

 

Bank of Canada cut rates to 0.25%¹ and began weekly asset purchases of Canadian government and corporate bonds at the onset of the recovery. US Treasuries also contributed to IBRA’s performance as the US Federal Reserve cut interest rates to zero² and, like Canada, implemented expanded asset purchases of government and corporate bonds. Australian bonds gained as the Reserve Bank of Australia announced an expansion of the term funding facility to approximately $200 billion Australia dollars at a fixed rate of 25 basis points for three years in order to keep funding costs low and bolster the supply of credit to lenders.³ UK Gilts also aided IBRA’s results as the Bank of England (BoE) cut interest rates from 0.75% to 0.10%⁴ and provided loans directly to businesses. The UK was hit harder by the pandemic than many other developed regions with multiple strict lockdowns leading the BoE to announce in November that it would further boost government bond purchases and would support negative interest rates if necessary. Germany and Japan were absent from the IBRA’s portfolio throughout the year due to the portfolio’s yield skew adjustments. Tactical positioning in bonds benefited from overweight exposure relative to the strategic positioning during the February-March sell-off.

    IBRA’s strategic exposure to developed market equities, obtained through the use of swaps and futures, contributed to its performance for the year. The magnitude of recovery varied across regions, largely depending on sector exposure. US equities were the top contributor due primarily to the high allocation to technology and low energy exposure. US small-cap equities outperformed large-caps due to the late year rally in risky assets as increasing rates of growth and inflation are a good environment for small company stocks. Japanese equities were also a top contributor as investors cheered the election of Yoshihide Suga to the post of prime minister, replacing

 

 

Shinzo Abe who retired for health reasons. A Suga administration is widely believed to be an extension of the Abe government, thus removing fears of Abe’s policies being reversed. European equities posted subdued, but positive, performance after a second wave of infections reversed the recovery. European markets remain suppressed as lockdown measures remained more restricted while the scale of their fiscal and monetary response also lagged China and the US. UK equities were the sole market to deliver negative returns. The UK was slow to contain the first and second wave of the virus and implemented extensive lockdowns too late, causing the economy to suffer more relative to other countries. The uncertainty around Brexit further compounded losses. IBRA’s tactical positioning in equities contributed to its performance and also provided gains as overweights during the second half of the year proved timely.

    IBRA’s strategic exposure to commodities, obtained through the use of swaps, futures and commodity-linked notes, also added to its performance for the year despite commodity indexes declining. Energy was the sole complex to finish the year negative. IBRA’s diversification within commodities and lower energy exposure helped buffer the losses. Commodities struggled to recover compared to stocks and bonds because prices are based on the current environment, whereas stocks and bonds are priced by discounting future cash flows. Performance across complexes was not uniform as evidenced by gold hitting all-time highs and crude reaching all-time lows, even dipping into negative territory for a brief period. Agriculture was the largest contributor to IBRA’s performance with gains concentrated in grains (soymeal and soybeans) and softs, most notably cotton. The primary catalysts for the broad-based increase in prices included a weakening US dollar and improved demand from China along with some challenges in growing conditions. Precious metals were another top contributor with silver outpacing gold. Seen as a store of value, gold began to rise as economic growth slowed in 2019 and surged to a record high in August on a combination of a weakening US dollar, central bank promises of “lower for longer” policy rates and investor concerns of monetary debasement. Silver benefited for similar reasons along with its crossover use as an industrial metal. Industrial metals prices rose on increased manufacturing activity and demand resulting from projects

related to fiscal stimulus. Exposure to energy detracted from IBRA’s performance due to a combination of falling demand caused by coronavirus (COVID-19) containment efforts and rising supply triggered by an oil price war between Saudi Arabia and Russia. IBRA’s tactical positioning in commodities benefited from its underweight exposure for the majority of the year and overweight exposure during the fourth quarter.

    Please note that IBRA’s strategy is principally implemented with derivative instruments that include futures, commodity-linked notes and total return swaps. Therefore, all or most of the performance of the strategy, both positive and negative, can be attributed to these instruments. Derivatives can be a cost-effective way to gain exposure to asset classes. However, derivatives may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities.

    Thank you for your continued investment in Invesco Balanced-Risk Retirement 2020 Fund.

 

1	Source: Bank of Canada

 

2	Source: US Federal Reserve

 

3	Source: Reserve Bank of Australia

 

4	Source: Bank of England

 

 

Portfolio manager(s):

Mark Ahnrud

Chris Devine

Scott Hixon

Christian Ulrich

Scott Wolle

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Trust. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

 

 

Performance summary – Invesco Balanced-Risk Retirement 2030  Fund For the year ended December 31, 2020, Class A shares of Invesco Balanced-Risk Retirement 2030 Fund (the Fund), at net asset value (NAV), underperformed the Custom Invesco Balanced-Risk Retirement 2030 Index.     Your Fund’s long-term performance appears later in this report.
Fund vs. Indexes
Total returns, 12/31/19 to 12/31/20, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares			8.98	%
Class AX Shares			8.96
Class C Shares			8.20
Class CX Shares			8.07
Class R Shares			8.75
Class RX Shares			8.63
Class Y Shares			9.20
Class R5 Shares			9.17
Class R6 Shares			9.17
S&P 500 Indexq (Broad Market Index)			18.40
Custom Invesco Balanced-Risk Retirement 2030 Index⬛ (Style-Specific Index)			13.63
Custom Invesco Balanced-Risk Allocation Broad Index⬛ (Style-Specific Index)			15.68
Lipper Mixed-Asset Target 2030 Funds Index◆ (Peer Group Index)			15.42
Source(s): qRIMES Technologies Corp.; ⬛Invesco, RIMES Technologies Corp.; ◆Lipper Inc.

 

Bank of Canada cut rates to 0.25%¹ and began weekly asset purchases of Canadian government and corporate bonds at the onset of the recovery. US Treasuries also contributed to IBRA’s performance as the US Federal Reserve cut interest rates to zero² and, like Canada, implemented expanded asset purchases of government and corporate bonds. Australian bonds gained as the Reserve Bank of Australia announced an expansion of the term funding facility to approximately $200 billion Australia dollars at a fixed rate of 25 basis points for three years in order to keep funding costs low and bolster the supply of credit to lenders.³ UK Gilts also aided IBRA’s results as the Bank of England (BoE) cut interest rates from 0.75% to 0.10%⁴ and provided loans directly to businesses. The UK was hit harder by the pandemic than many other developed regions with multiple strict lockdowns leading the BoE to announce in November that it would further boost government bond purchases and would support negative interest rates if necessary. Germany and Japan were absent from the IBRA’s portfolio throughout the year due to the portfolio’s yield skew adjustments. Tactical positioning in bonds benefited from overweight exposure relative to the strategic positioning during the February-March sell-off.

    IBRA’s strategic exposure to developed market equities, obtained through the use of swaps and futures, contributed to its performance for the year. The magnitude of recovery varied across regions, largely depending on sector exposure. US equities were the top contributor due primarily to the high allocation to technology and low energy exposure. US small-cap equities outperformed large-caps due to the late year rally in risky assets as increasing rates of growth and inflation are a good environment for small company stocks. Japanese equities were also a top contributor as investors cheered the election of Yoshihide Suga to the post of prime minister, replacing

 

 

Shinzo Abe who retired for health reasons. A Suga administration is widely believed to be an extension of the Abe government, thus removing fears of Abe’s policies being reversed. European equities posted subdued, but positive, performance after a second wave of infections reversed the recovery. European markets remain suppressed as lockdown measures remained more restricted while the scale of their fiscal and monetary response also lagged China and the US. UK equities were the sole market to deliver negative returns. The UK was slow to contain the first and second wave of the virus and implemented extensive lockdowns too late, causing the economy to suffer more relative to other countries. The uncertainty around Brexit further compounded losses. IBRA’s tactical positioning in equities contributed to its performance and also provided gains as overweights during the second half of the year proved timely.

    IBRA’s strategic exposure to commodities, obtained through the use of swaps, futures and commodity-linked notes, also added to Fund performance for the year despite commodity indexes declining. Energy was the sole complex to finish the year negative. IBRA’s diversification within commodities and lower energy exposure helped buffer the losses. Commodities struggled to recover compared to stocks and bonds because prices are based on the current environment, whereas stocks and bonds are priced by discounting future cash flows. Performance across complexes was not uniform as evidenced by gold hitting all-time highs and crude reaching all-time lows, even dipping into negative territory for a brief period. Agriculture was the largest contributor to IBRA’s performance with gains concentrated in grains (soymeal and soybeans) and softs, most notably cotton. The primary catalysts for the broad-based increase in prices included a weakening US dollar and improved demand from China along with some challenges in growing conditions. Precious metals were another top contributor with silver outpacing gold. Seen as a store of value, gold began to rise as economic growth slowed in 2019 and surged to a record high in August on a combination of a weakening US dollar, central bank promises of “lower for longer” policy rates and investor concerns of monetary debasement. Silver benefited for similar reasons along with its crossover use as an industrial metal. Industrial metals prices rose on increased manufacturing activity and demand resulting from projects

related to fiscal stimulus. Exposure to energy detracted from IBRA’s performance due to a combination of falling demand caused by coronavirus (COVID-19) containment efforts and rising supply triggered by an oil price war between Saudi Arabia and Russia. IBRA’s tactical positioning in commodities benefited from underweight exposure for the majority of the year and overweight exposure during the fourth quarter.

    Please note that IBRA’s strategy is principally implemented with derivative instruments that include futures, commodity-linked notes and total return swaps. Therefore, all or most of the performance of the strategy, both positive and negative, can be attributed to these instruments. Derivatives can be a cost-effective way to gain exposure to asset classes. However, derivatives may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities.

    Thank you for your continued investment in Invesco Balanced-Risk Retirement 2030 Fund.

 

1	Source: Bank of Canada

 

2	Source: US Federal Reserve

 

3	Source: Reserve Bank of Australia

 

4	Source: Bank of England

 

 

Portfolio manager(s):

Mark Ahnrud

Chris Devine

Scott Hixon

Christian Ulrich

Scott Wolle

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Trust. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

 

See important Fund and, if applicable, index disclosures later in this report.

 

Performance summary – Invesco Balanced-Risk Retirement 2040  Fund For the year ended December 31, 2020, Class A shares of Invesco Balanced-Risk Retirement 2040 Fund (the Fund), at net asset value (NAV), underperformed the Custom Invesco Balanced-Risk Retirement 2040 Index.     Your Fund’s long-term performance appears later in this report.
Fund vs. Indexes
Total returns, 12/31/19 to 12/31/20, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares			11.02	%
Class AX Shares			10.91
Class C Shares			10.07
Class CX Shares			10.23
Class R Shares			10.73
Class RX Shares			10.72
Class Y Shares			11.22
Class R5 Shares			11.34
Class R6 Shares			11.33
S&P 500 Indexq (Broad Market Index)			18.40
Custom Invesco Balanced-Risk Retirement 2040 Index⬛ (Style-Specific Index)			14.08
Custom Invesco Balanced-Risk Allocation Broad Index⬛ (Style-Specific Index)			15.68
Lipper Mixed-Asset Target 2040 Funds Index◆ (Peer Group Index)			16.70
Source(s): qRIMES Technologies Corp.; ⬛Invesco, RIMES Technologies Corp.; ◆Lipper Inc.

 

year on central bank assurances that rates will be held at exceptionally low levels for the foreseeable future. Canadian bonds led results as the Bank of Canada cut rates to 0.25%¹ and began weekly asset purchases of Canadian government and corporate bonds at the onset of the recovery. US Treasuries also contributed to IBRA’s and IBRAA’s performance as the US Federal Reserve cut interest rates to zero² and, like Canada, implemented expanded asset purchases of government and corporate bonds. Australian bonds gained as the Reserve Bank of Australia announced an expansion of the term funding facility to approximately $200 billion Australia dollars at a fixed rate of 25 basis points for three years in order to keep funding costs low and bolster the supply of credit to lenders.³ UK Gilts also aided IBRA’s and IBRAA’s results as the Bank of England (BoE) cut interest rates from 0.75% to 0.10%⁴ and provided loans directly to businesses. The UK was hit harder by the pandemic than many other developed regions with multiple strict lockdowns leading the BoE to announce in November that it would further boost government bond purchases and would support negative interest rates if necessary. Germany and Japan were absent from the IBRA’s and IBRAA’s portfolios throughout the year due to the portfolio’s yield skew adjustments. Tactical positioning in bonds benefited from overweight exposure relative to the strategic positioning during the February-March sell-off.

    Each of IBRA’s and IBRAA’s strategic exposures to developed market equities, obtained through the use of swaps and futures, contributed to Fund performance for the year. The magnitude of recovery varied across regions, largely depending on sector exposure. US equities were the top contributor due primarily to the high allocation to technology and low energy exposure. US small-cap equities outperformed large-caps due to the late year rally in risky assets as increasing rates of growth and inflation are

 

 

a good environment for small company stocks. Japanese equities were also a top contributor as investors cheered the election of Yoshihide Suga to the post of prime minister, replacing Shinzo Abe who retired for health reasons. A Suga administration is widely believed to be an extension of the Abe government, thus removing fears of Abe’s policies being reversed. European equities posted subdued, but positive, performance after a second wave of infections reversed the recovery. European markets remain suppressed as lockdown measures remained more restricted while the scale of their fiscal and monetary response also lagged China and the US. UK equities were the sole market to deliver negative returns. The UK was slow to contain the first and second wave of the virus and implemented extensive lockdowns too late, causing the economy to suffer more relative to other countries. The uncertainty around Brexit further compounded losses. IBRA’s and IBRAA’s tactical positioning in equities contributed to Fund performance and also provided gains as overweights during the second half of the year proved timely.

    Each of IBRA’s and IBRAA’s strategic exposures to commodities, obtained through the use of swaps, futures and commodity-linked notes, also added to Fund performance for the year despite commodity indexes declining. Energy was the sole complex to finish the year negative. IBRA’s and IBRAA’s diversification within commodities and lower energy exposure helped buffer the losses. Commodities struggled to recover compared to stocks and bonds because prices are based on the current environment, whereas stocks and bonds are priced by discounting future cash flows. Performance across complexes was not uniform as evidenced by gold hitting all-time highs and crude reaching all-time lows, even dipping into negative territory for a brief period. Agriculture was the largest contributor to IBRA’s and IBRAA’s performance with gains concentrated in grains (soymeal and soybeans) and softs, most notably cotton. The primary catalysts for the broad-based increase in prices included a weakening US dollar and improved demand from China along with some challenges in growing conditions. Precious metals were another top contributor with silver outpacing gold. Seen as a store of value, gold began to rise as economic growth slowed in 2019 and surged to a record high in August on a combination of a weakening US dollar, central bank promises of “lower for longer”

policy rates and investor concerns of monetary debasement. Silver benefited for similar reasons along with its crossover use as an industrial metal. Industrial metals prices rose on increased manufacturing activity and demand resulting from projects related to fiscal stimulus. Exposure to energy detracted from IBRA’s and IBRAA’s performance due to a combination of falling demand caused by coronavirus (COVID-19) containment efforts and rising supply triggered by an oil price war between Saudi Arabia and Russia. IBRA’s and IBRAA’s tactical positioning in commodities benefited from underweight exposure for the majority of the year and overweight exposure during the fourth quarter.

    Please note that each of IBRA’s and IBRAA’s strategies are principally implemented with derivative instruments that include futures, commodity-linked notes and total return swaps. Therefore, all or most of the performance of the strategy, both positive and negative, can be attributed to these instruments. Derivatives can be a cost-effective way to gain exposure to asset classes. However, derivatives may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities.

    Thank you for your continued investment in Invesco Balanced-Risk Retirement 2040 Fund.

 

1	Source: Bank of Canada

 

2	Source: US Federal Reserve

 

3	Source: Reserve Bank of Australia

 

4	Source: Bank of England

 

 

Portfolio manager(s):

Mark Ahnrud

Chris Devine

Scott Hixon

Christian Ulrich

Scott Wolle

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Trust. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

 

Performance summary – Invesco Balanced-Risk Retirement 2050  Fund For the year ended December 31, 2020, Class A shares of Invesco Balanced-Risk Retirement 2050 Fund (the Fund), at net asset value (NAV), underperformed the Custom Invesco Balanced-Risk Retirement 2050 Index.     Your Fund’s long-term performance appears later in this report.
Fund vs. Indexes
Total returns, 12/31/19 to 12/31/20, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares			13.08	%
Class AX Shares			13.07
Class C Shares			12.17
Class R Shares			12.52
Class RX Shares			12.79
Class Y Shares			13.26
Class R5 Shares			13.24
Class R6 Shares			13.22
S&P 500 Indexq (Broad Market Index)			18.40
Custom Invesco Balanced-Risk Retirement 2050 Index⬛ (Style-Specific Index)			14.42
Custom Invesco Balanced-Risk Allocation Broad Index⬛ (Style-Specific Index)			15.68
Lipper Mixed-Asset Target 2050 Funds Index◆ (Peer Group Index)			16.90
Source(s): qRIMES Technologies Corp.; ⬛ Invesco, RIMES Technologies Corp.; ◆ Lipper Inc.

Canada cut rates to 0.25%¹ and began weekly asset purchases of Canadian government and corporate bonds at the onset of the recovery. US Treasuries also contributed to IBRA’s and IBRAA’s performance as the US Federal Reserve cut interest rates to zero² and, like Canada, implemented expanded asset purchases of government and corporate bonds. Australian bonds gained as the Reserve Bank of Australia announced an expansion of the term funding facility to approximately $200 billion Australia dollars at a fixed rate of 25 basis points for three years in order to keep funding costs low and bolster the supply of credit to lenders.³ UK Gilts also aided IBRA’s and IBRAA’s results as the Bank of England (BoE) cut interest rates from 0.75% to 0.10%⁴ and provided loans directly to businesses. The UK was hit harder by the pandemic than many other developed regions with multiple strict lockdowns leading the BoE to announce in November that it would further boost government bond purchases and would support negative interest rates if necessary. Germany and Japan were absent from the IBRA’s and IBRAA’s portfolios throughout the year due to the portfolio’s yield skew adjustments. Tactical positioning in bonds benefited from overweight exposure relative to the strategic positioning during the February-March sell-off.

    Each of IBRA’s and IBRAA’s strategic exposures to developed market equities, obtained through the use of swaps and futures, contributed to Fund performance for the year. The magnitude of recovery varied across regions, largely depending on sector exposure. US equities were the top contributor due primarily to the high allocation to technology and low energy exposure. US small-cap equities outperformed large-caps due to the late year rally in risky assets as increasing rates of growth and inflation are a good environment for small company stocks. Japanese equities were also a top contributor as investors cheered the election of Yoshihide Suga to the post of prime minister, replacing Shinzo Abe who

 

 

retired for health reasons. A Suga administration is widely believed to be an extension of the Abe government, thus removing fears of Abe’s policies being reversed. European equities posted subdued, but positive, performance after a second wave of infections reversed the recovery. European markets remain suppressed as lockdown measures remained more restricted while the scale of their fiscal and monetary response also lagged China and the US. UK equities were the sole market to deliver negative returns. The UK was slow to contain the first and second wave of the virus and implemented extensive lockdowns too late, causing the economy to suffer more relative to other countries. The uncertainty around Brexit further compounded losses. IBRA’s and IBRAA’s tactical positioning in equities contributed to Fund performance and also provided gains as overweights during the second half of the year proved timely.

    Each of IBRA’s and IBRAA’s strategic exposures to commodities, obtained through the use of swaps, futures and commodity-linked notes, also added to Fund performance for the year despite commodity indexes declining. Energy was the sole complex to finish the year negative. IBRA’s and IBRAA’s diversification within commodities and lower energy exposure helped buffer the losses. Commodities struggled to recover compared to stocks and bonds because prices are based on the current environment, whereas stocks and bonds are priced by discounting future cash flows. Performance across complexes was not uniform as evidenced by gold hitting all-time highs and crude reaching all-time lows, even dipping into negative territory for a brief period. Agriculture was the largest contributor to IBRA’s and IBRAA’s performance with gains concentrated in grains (soymeal and soybeans) and softs, most notably cotton. The primary catalysts for the broad-based increase in prices included a weakening US dollar and improved demand from China along with some challenges in growing conditions. Precious metals were another top contributor with silver outpacing gold. Seen as a store of value, gold began to rise as economic growth slowed in 2019 and surged to a record high in August on a combination of a weakening US dollar, central bank promises of “lower for longer” policy rates and investor concerns of monetary debasement. Silver benefited for similar reasons along with its crossover use as an industrial metal. Industrial metals prices rose on increased

manufacturing activity and demand resulting from projects related to fiscal stimulus. Exposure to energy detracted from IBRA’s and IBRAA’s performance due to a combination of falling demand caused by coronavirus (COVID-19) containment efforts and rising supply triggered by an oil price war between Saudi Arabia and Russia. IBRA’s and IBRAA’s tactical positioning in commodities benefited from underweight exposure for the majority of the year and overweight exposure during the fourth quarter.

    Please note that each of IBRA’s and IBRAA’s strategies are principally implemented with derivative instruments that include futures, commodity-linked notes and total return swaps. Therefore, all or most of the performance of the strategy, both positive and negative, can be attributed to these instruments. Derivatives can be a cost-effective way to gain exposure to asset classes. However, derivatives may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities.

    Thank you for your continued investment in Invesco Balanced-Risk Retirement 2050 Fund.

 

1	Source: Bank of Canada

 

2	Source: US Federal Reserve

 

3	Source: Reserve Bank of Australia

 

4	Source: Bank of England

 

 

Portfolio manager(s):

Mark Ahnrud

Chris Devine

Scott Hixon

Christian Ulrich

Scott Wollle

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Trust. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

 

Past performance cannot guarantee future results.

The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including

management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses and management fees; performance

of a market index does not. Performance shown in the chart does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

 

Average Annual Total Returns
As of 12/31/20, including maximum applicable sales charges
Class A Shares
Inception (1/31/07)			2.70	%
10 Years			3.22
5 Years			3.67
1 Year			0.06
Class AX Shares
Inception (6/1/10)			3.66	%
10 Years			3.21
5 Years			3.67
1 Year			0.18
Class C Shares
Inception (1/31/07)			2.66	%
10 Years			3.21
5 Years			4.10
1 Year			4.21
Class CX Shares
Inception (6/1/10)			3.63	%
10 Years			3.20
5 Years			4.08
1 Year			4.07
Class R Shares
Inception (1/31/07)			2.85	%
10 Years			3.54
5 Years			4.56
1 Year			5.69
Class RX Shares
Inception (6/1/10)			3.94	%
10 Years			3.54
5 Years			4.57
1 Year			5.69
Class Y Shares
Inception (10/3/08)			4.54	%
10 Years			4.06
5 Years			5.11
1 Year			6.27
Class R5 Shares
Inception (1/31/07)			3.37	%
10 Years			4.06
5 Years			5.09
1 Year			6.28
Class R6 Shares
10 Years			4.02	%
5 Years			5.09
1 Year			6.28

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher.

Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Class A and Class AX share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class RX, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

 

Past performance cannot guarantee future results.

    The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including

management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses and management fees; performance

of a market index does not. Performance shown in the chart does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

 

Average Annual Total Returns
As of 12/31/20, including maximum applicable sales charges
Class A Shares
Inception (1/31/07)			3.30	%
10 Years			4.32
5 Years			4.23
1 Year			0.06
Class AX Shares
Inception (6/1/10)			5.09	%
10 Years			4.32
5 Years			4.23
1 Year			0.06
Class C Shares
Inception (1/31/07)			3.25	%
10 Years			4.29
5 Years			4.64
1 Year			4.14
Class CX Shares
Inception (6/1/10)			5.05	%
10 Years			4.28
5 Years			4.62
1 Year			4.03
Class R Shares
Inception (1/31/07)			3.46	%
10 Years			4.65
5 Years			5.16
1 Year			5.61
Class RX Shares
Inception (6/1/10)			5.39	%
10 Years			4.65
5 Years			5.16
1 Year			5.61
Class Y Shares
Inception (10/3/08)			5.94	%
10 Years			5.16
5 Years			5.66
1 Year			6.19
Class R5 Shares
Inception (1/31/07)			3.98	%
10 Years			5.17
5 Years			5.68
1 Year			6.15
Class R6 Shares
10 Years			5.13	%
5 Years			5.65
1 Year			6.15

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher.

Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Class A and Class AX share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class RX, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

 

Past performance cannot guarantee future results.

    The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including

management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses and management fees; performance

of a market index does not. Performance shown in the chart does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

 

Average Annual Total Returns
As of 12/31/20, including maximum applicable sales charges
Class A Shares
Inception (1/31/07)			3.70	%
10 Years			5.50
5 Years			6.31
1 Year			3.02
Class AX Shares
Inception (6/1/10)			6.22	%
10 Years			5.51
5 Years			6.28
1 Year			3.02
Class C Shares
Inception (1/31/07)			3.66	%
10 Years			5.49
5 Years			6.75
1 Year			7.20
Class CX Shares
Inception (6/1/10)			6.20	%
10 Years			5.48
5 Years			6.75
1 Year			7.07
Class R Shares
Inception (1/31/07)			3.86	%
10 Years			5.84
5 Years			7.28
1 Year			8.75
Class RX Shares
Inception (6/1/10)			6.53	%
10 Years			5.85
5 Years			7.26
1 Year			8.63
Class Y Shares
Inception (10/3/08)			6.86	%
10 Years			6.35
5 Years			7.77
1 Year			9.20
Class R5 Shares
Inception (1/31/07)			4.37	%
10 Years			6.35
5 Years			7.77
1 Year			9.17
Class R6 Shares
10 Years			6.31	%
5 Years			7.77
1 Year			9.17

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher.

Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Class A and Class AX share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class RX, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

 

Past performance cannot guarantee future results.

    The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including

management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses and management fees; performance

of a market index does not. Performance shown in the chart does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

 

Average Annual Total Returns
As of 12/31/20, including maximum applicable sales charges
Class A Shares
Inception (1/31/07)			3.91	%
10 Years			6.14
5 Years			7.55
1 Year			4.97
Class AX Shares
Inception (6/1/10)			6.81	%
10 Years			6.12
5 Years			7.54
1 Year			4.85
Class C Shares
Inception (1/31/07)			3.87	%
10 Years			6.14
5 Years			7.99
1 Year			9.07
Class CX Shares
Inception (6/1/10)			6.80	%
10 Years			6.11
5 Years			8.01
1 Year			9.23
Class R Shares
Inception (1/31/07)			4.07	%
10 Years			6.47
5 Years			8.51
1 Year			10.73
Class RX Shares
Inception (6/1/10)			7.14	%
10 Years			6.48
5 Years			8.50
1 Year			10.72
Class Y Shares
Inception (10/3/08)			7.31	%
10 Years			6.98
5 Years			9.03
1 Year			11.22
Class R5 Shares
Inception (1/31/07)			4.58	%
10 Years			6.99
5 Years			9.01
1 Year			11.34
Class R6 Shares
10 Years			6.96	%
5 Years			9.04
1 Year			11.33

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher.

Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Class A and Class AX share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class RX, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

 

Past performance cannot guarantee future results.

    The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including

management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses and management fees; performance

of a market index does not. Performance shown in the chart does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

 

Average Annual Total Returns
As of 12/31/20, including maximum applicable sales charges
Class A Shares
Inception (1/31/07)			4.15	%
10 Years			6.73
5 Years			8.71
1 Year			6.91
Class AX Shares
Inception (6/1/10)			7.40	%
10 Years			6.74
5 Years			8.70
1 Year			6.90
Class C Shares
Inception (1/31/07)			4.13	%
10 Years			6.72
5 Years			9.18
1 Year			11.17
Class R Shares
Inception (1/31/07)			4.31	%
10 Years			7.07
5 Years			9.67
1 Year			12.52
Class RX Shares
Inception (6/1/10)			7.72	%
10 Years			7.08
5 Years			9.69
1 Year			12.79
Class Y Shares
Inception (10/3/08)			7.74	%
10 Years			7.59
5 Years			10.19
1 Year			13.26
Class R5 Shares
Inception (1/31/07)			4.82	%
10 Years			7.61
5 Years			10.21
1 Year			13.24
Class R6 Shares
10 Years			7.55	%
5 Years			10.20
1 Year			13.22

Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the

maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

Class A and Class AX share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class RX, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

 

 

About indexes used in this report

∎

The Custom Invesco Balanced Risk Allocation Broad Index is composed of 60% S&P 500 Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index.

∎

The Custom Invesco Balanced-Risk Retirement Now Index is composed of the following indexes: MSCI World, Bloomberg Barclays U.S. Aggregate Bond and FTSE US 3-Month Treasury Bill. From January 31, 2007, to November 4, 2009, the index comprised the Custom Independence Now Index, which included the following indexes: Russell 3000, MSCI EAFE, FTSE NAREIT Equity REITs, Bloomberg Barclays U.S. Universal and U.S. 3-Month Treasury Bill. From November 4, 2009, through November 30, 2009, the index comprised the following indexes: MSCI World, JP Morgan Global Government Bond and U.S. 3-Month Treasury Bill. The composition of the index may change based on the fund’s target asset allocation. Therefore, 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 objective. The MSCI World Index is considered representative of stocks of developed countries and is computed using the net return, which withholds applicable taxes for non-resident investors. The Bloomberg Barclays U.S. Aggregate Bond Index is considered representative of the US investment-grade, fixed-rate bond market. The U.S. 3-Month Treasury Bill Index is tracked by Lipper to provide performance for

the three-month US Treasury bill. The Russell

3000 Index is considered representative of the US stock market. The Russell 3000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The MSCI EAFE Index is considered representative of stocks of Europe, Australasia and the Far East and is computed using the net return, which withholds applicable taxes for non-resident investors. The FTSE NA-REIT Equity REITs Index is considered representative of US real estate investment trusts (REITs). The Bloomberg Barclays U.S. Universal Index is considered representative of USD-denominated, taxable bonds that are rated either investment grade or below investment grade. The JP Morgan Global Government Bond Index tracks the performance of fixed-rate issuances from high-income countries.

∎

The Custom Invesco Balanced-Risk Retirement 2020 Index is composed of the following indexes: MSCI World, Bloomberg Barclays U.S. Aggregate Bond and U.S. 3-Month Treasury Bill Index. From January 31, 2007, to November 4, 2009, the index comprised the Custom Independence 2020 Index, which included the following indexes: Russell 3000 , MSCI EAFE, FTSE NAREIT Equity REITs and Bloomberg Barclays U.S. Universal. From November 4, 2009, through November 30, 2009, the index comprised the following indexes: MSCI World and the JP Morgan Global Government Bond. The composition of the index may change based on the fund’s target asset allocation. Therefore, 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 objective. The MSCI World Index is considered representative of

 

 

 

 

NOT FDIC INSURED   |   MAY LOSE VALUE   |   NO BANK GUARANTEE

stocks of developed countries and is computed using the net return, which withholds applicable taxes for non-resident investors. The Bloomberg Barclays U.S. Aggregate Bond Index is considered representative of the US investment-grade, fixed-rate bond market. The U.S. 3-Month Treasury Bill Index is tracked by Lipper to provide performance for the three-month US Treasury bill. The Russell 3000 Index is considered representative of the US stock market. The Russell 3000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The MSCI EAFE Index is considered representative of stocks of Europe, Australasia and the Far East and is computed using the net return, which withholds applicable taxes for non-resident investors. The FTSE NA-REIT Equity REITs Index is considered representative of US real estate investment trusts (REITs). The Bloomberg Barclays U.S. Universal Index is considered representative of USD-denominated, taxable bonds that are rated either investment grade or below investment grade. The JP Morgan Global Government Bond Index tracks the performance of fixed-rate issuances from high-income countries.

∎

The Custom Invesco Balanced-Risk Retirement 2030 Index is composed of the following indexes: MSCI World and the Bloomberg Barclays U.S. Aggregate Bond. From January 31, 2007, to November 4, 2009, the index comprised the Custom Independence 2030 Index, which included the following indexes: Russell 3000, MSCI EAFE, FTSE NAREIT Equity REITs and Bloomberg Barclays U.S. Universal. From November 4, 2009, through

 

November 30, 2009, the index comprised the following indexes: MSCI World and JP Morgan Global Government Bond. The composition of the index may change based on the fund’s target asset allocation. Therefore, 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 objective. The MSCI World Index is considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Bloomberg Barclays U.S. Aggregate Bond Index is considered representative of the US investment-grade, fixed-rate bond market. The Russell 3000 Index is considered representative of the US stock market. The Russell 3000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The MSCI EAFE Index is considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The FTSE NAREIT Equity REITs Index is considered representative of US real estate investment trusts (REITs). The Bloomberg Barclays U.S. Universal Index is considered representative of USD-denominated, taxable bonds that are rated either investment grade or below investment grade. The JP Morgan Global Government Bond Index tracks fixed-rate issuances from high-income countries.

∎

The Custom Invesco Balanced-Risk Retirement 2040 Index is composed of the following indexes: MSCI World and Bloomberg Barclays U.S. Aggregate Bond. From January 31, 2007, to November 4, 2009, the index comprised the Custom Independence 2040 Index, which included the following indexes: Russell 3000, MSCI EAFE, FTSE NAREIT Equity REITs and Bloomberg Barclays U.S. Universal. From November 4, 2009, through November 30, 2009, the index comprised the following indexes: MSCI World and the JP Morgan Global Government Bond. The composition of the index may change based on the fund’s target asset allocation. Therefore, 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 objective. The MSCI World Index is considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Bloomberg Barclays U.S. Aggregate Bond Index is considered representative of the US investment-grade, fixed-rate bond market. The Russell 3000 Index is considered representative of the US stock market. The Russell 3000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The MSCI EAFE Index is considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The FTSE NAREIT Equity REITs Index is considered representative of US real estate investment trusts (REITs). The Bloomberg Barclays U.S. Universal Index is considered representative of USD-denominated, taxable bonds that are rated either investment grade or below investment grade. The JP Morgan Global Government Bond Index tracks fixed-rate issuances from high-income countries.

∎

The Custom Invesco Balanced-Risk Retirement 2050 Index is composed of the following indexes: MSCI World and Bloomberg Barclays U.S. Aggregate Bond. From January 31, 2007, to November 4, 2009, the index comprised the Custom Independence 2050 Index, which included the following indexes: Russell 3000, MSCI EAFE, FTSE NAREIT Equity REITs and Bloomberg Barclays U.S. Universal. From November 4, 2009, through November 30, 2009, the index comprised the following indexes: MSCI World and JP Morgan Global Government Bond. The composition of the index may change based on the fund’s target asset allocation. Therefore, 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 objective. The MSCI World Index is considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors. Bloomberg Barclays U.S. Aggregate Bond Index is considered representative of the US investment-grade, fixed-rate bond market. The Russell 3000 Index is considered

representative of the US stock market. The Russell 3000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The MSCI EAFE Index is considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The FTSE NAREIT Equity REITs Index is considered representative of US real estate investment trusts (REITs). The Bloomberg Barclays U.S. Universal Index is considered representative of

USD-denominated, taxable bonds that are rated either investment grade or below investment grade. The JP Morgan Global Government Bond Index tracks fixed-rate issuances from high-income countries.

∎

The Lipper Mixed-Asset Target Today Funds Index is an unmanaged index considered representative of mixed-asset target today funds tracked by Lipper.

∎

The Lipper Mixed-Asset Target 2020 Funds Index is an unmanaged index considered representative of mixed-asset target 2020 funds tracked by Lipper.

∎

The Lipper Mixed-Asset Target 2030 Funds Index is an unmanaged index considered representative of mixed-asset target 2030 funds tracked by Lipper.

∎

The Lipper Mixed-Asset Target 2040 Funds Index is an unmanaged index considered representative of mixed-asset target 2040 funds tracked by Lipper.

∎

The Lipper Mixed-Asset Target 2050 Funds Index is an unmanaged index considered representative of mixed-asset target 2050 funds tracked by Lipper.

∎

The S&P 500® Index is an unmanaged index considered representative of the US stock market.

∎

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

∎

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index do.

 

Invesco Balanced-Risk Retirement 2040 Fund
Asset Class*		Risk Allocation					% of Total Net Assets**
Equity				48.22	%				50.26	%
Fixed Income				18.77					64.74
Commodities				33.01					38.80
Cash				0.00					0.01
Total				100.00	%				153.81	%
Invesco Balanced-Risk Retirement 2050 Fund
Asset Class*		Risk Allocation					% of Total Net Assets**
Equity				48.22	%				57.01	%
Fixed Income				18.77					73.44
Commodities				33.01					44.01
Total				100.00	%				174.46	%

 

*	Based on the expected market exposure through investments in the underlying funds.

**  Due

to the use of leverage, the percentages may not equal 100%.

Data presented here are as of December 31, 2020.