Prospectus
Series I shares and
Series II shares
Invesco
Oppenheimer V.I. International Growth Fund
Shares
of the Fund are currently offered only to insurance company separate accounts
funding variable annuity contracts and variable life insurance
policies.
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.
Shares of the Fund
are used as investment vehicles for variable annuity contracts and variable life
insurance policies (variable products) issued by certain insurance companies,
and funds of funds. You cannot purchase shares of the Fund directly. As an owner
of a variable product (variable product owner) that offers the Fund as an
investment option,
however, you may
allocate your variable product values to a separate account of the insurance
company that invests in shares of the Fund.
Your
variable product is offered through its own prospectus, which contains
information about your variable product, including how to purchase the variable
product and how to allocate variable product values to the Fund.
Invesco
Oppenheimer V.I. International Growth Fund
The Fund’s
investment objective is to seek capital
appreciation.
This table
describes the fees and expenses that are incurred, directly or indirectly, when
a variable product owner buys, holds, or redeems interest in an insurance
company separate account that invests in the Series I shares or Series II shares
of the Fund but does not represent the effect of any fees or other expenses
assessed in connection with your variable product, and if it did, expenses would
be higher.
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|
Series
I shares |
Series
II shares |
|
Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
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|
Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or redemption
proceeds,
whichever is less) |
||
|
| ||
|
|
Series
I shares |
Series
II shares |
|
Management
Fees |
||
|
| ||
|
Distribution
and/or Service (12b-1) Fees |
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|
| ||
|
Other
Expenses |
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|
Total
Annual Fund Operating Expenses |
||
|
| ||
|
Fee
Waiver and/or Expense Reimbursement1 |
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| ||
|
Total
Annual Fund Operating Expenses After Fee Waiver
and/or
Expense Reimbursement |
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|
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1
This
Example does not represent the effect of any fees or expenses assessed in
connection with your variable product, and if it did, expenses would be
higher.
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. 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:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Series
I shares |
$ |
$ |
$ |
$ |
|
| ||||
|
Series
II shares |
$ |
$ |
$ |
$ |
|
| ||||
Under normal
circumstances, the Fund will invest at least 65% of its total assets in equity
securities of issuers that are domiciled or that have their primary operations
in at least three different countries outside of the United States. The Fund may
invest 100% of its total assets in securities of foreign companies. The Fund
mainly invests in the common stock of “growth companies,” which are companies
considered by the Fund’s portfolio managers to have potential for earnings or
revenue growth.
The
Fund may invest up to 25% of its total assets in emerging markets (i.e., those that
are generally in the early stages of their industrial cycles). The Fund
considers an issuer to be located in an emerging market if it is organized under
the laws of an emerging country; its principal securities trading market is in
an emerging market; at least 50% of the issuer’s non-current assets,
capitalization, gross revenue or profit is derived from assets or activities
located in emerging markets (directly or indirectly); or its “country of risk”
is located in an emerging market as determined by a third party service
provider. From time to time, the Fund may place greater emphasis on investing in
one or more particular industries, countries, or regions, such as Asia or
Europe.
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 stocks and other securities having
equity features.
The
Fund’s portfolio managers look primarily for high growth potential using a “bottom up”
investment approach on a company-by-company basis. That approach looks at the
investment performance of individual stocks before considering the impact of
general or industry specific economic trends. It includes fundamental analysis
of a company’s financial statements and management structure and consideration
of the company’s operations and product development, as well as its position in
its industry.
The
portfolio managers currently focus on the following factors: companies that
enjoy a strong competitive position and high demand for their products or
services; companies with accelerating earnings growth and cash flow; and
diversity among countries, companies and industries to seek to reduce the risks
of foreign investing, such as currency fluctuations and market volatility. The
consideration of those factors may vary in particular cases and may change over
time.
The
portfolio managers also consider the effects of worldwide trends on the growth of
particular business sectors and look for companies that may benefit from those
trends. The trends currently considered include: mass affluence, new
technologies, restructuring and aging. The portfolio managers do not invest any
fixed amount of the Fund’s assets according to these criteria, which may change
over time. The portfolio managers monitor individual issuers for changes in
these factors, which may trigger a decision to sell a security, but does not
require a decision to do so.
1 Invesco
Oppenheimer V.I. International Growth Fund
2 Invesco
Oppenheimer V.I. International Growth Fund
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 Growth
Fund/VA (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 Series I shares of the Fund and the Non-Service Shares of the
predecessor fund from year to year as of December 31. The performance table
compares the predecessor fund’s and the Fund’s performance to that
The
returns shown for periods ending on or prior to May 24, 2019 are those of the
Non-Service Shares and Service Shares of the predecessor fund, and are not
offered by the Fund. The Non-Service Shares of the predecessor fund were
reorganized into Series I shares of the Fund and the Service Shares of the
predecessor fund were reorganized into the Series II shares of the Fund after
the close of business on May 24, 2019. Series I shares’ and Series II shares’
returns of the Fund will be different from the Non-Service Shares’ and the
Service Shares’ returns of the predecessor fund as they have different
expenses.
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.
The
Series I shares and Series II shares invest in the same portfolio of
securities and will
have substantially similar performance, except to the extent that the expenses
borne by each share class differ. Series II shares have higher expenses (and
therefore lower performance) resulting from its Rule 12b-1 plan, which provides
for a maximum fee equal to an annual rate of 0.25% (expressed as a percentage of
average daily net assets of the Fund).
Annual Total Returns
|
Series
I |
Period
Ended |
Returns |
|
|
|
|
|
|
|
- |
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
|
Series
I |
- |
|||
|
| ||||
|
Series
II |
- |
- |
||
|
| ||||
|
MSCI
ACWI ex USA®
Index (Net) dividends
net of withholding taxes, but reflects no
deduction
for fees, expenses or other taxes) |
- |
|||
|
| ||||
Management
of the Fund
Investment Adviser:
Invesco Advisers, Inc.
|
Portfolio
Managers |
Title |
Length
of Service on the Fund |
George
R. Evans, CFA |
Portfolio
Manager |
2019
(predecessor fund 1999) |
|
| ||
Robert
B. Dunphy, CFA |
Portfolio
Manager |
2019
(predecessor fund 2012) |
|
| ||
Purchase
and Sale of Fund Shares
You cannot purchase
or sell (redeem) shares of the Fund directly. Please contact the insurance
company that issued your variable product for more information on the purchase
and sale of Fund shares. For more information, see “Other Information—Purchase
and Redemption of Shares” in the prospectus.
3 Invesco
Oppenheimer V.I. International Growth Fund
Tax
Information
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. Because shares of the Fund must be purchased through variable products,
such distributions will be exempt from current taxation if left to accumulate
within the variable product. Consult your variable insurance contract prospectus
for additional tax information.
Payments
to Insurance Companies
If you purchase the
Fund through an insurance company or other financial intermediary, 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 insurance company 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 circumstances, the Fund will invest at least 65% of its total assets in
equity securities of issuers that are domiciled or that have their primary
operations in at least three different countries outside of the United States.
The Fund may invest 100% of its total assets in securities of foreign companies.
The Fund mainly invests in the common stock of “growth companies,” which are
companies considered by the Fund’s portfolio managers to have potential for
earnings or revenue growth.
The
Fund may invest up to 25% of its total assets in emerging markets (i.e., those that
are generally in the early stages of their industrial cycles). The Fund
considers an issuer to be located in an emerging market if it is organized under
the laws of an emerging country; its principal securities trading market is in
an emerging market; at least 50% of the issuer’s non-current assets,
capitalization, gross revenue or profit is derived from assets or activities
located in emerging markets (directly or indirectly); or its “country of risk”
is located in an emerging market as determined by a third party service
provider. From time to time, the Fund may place greater emphasis on investing in
one or more particular industries, countries, or regions, such as Asia or
Europe.
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 stocks and other securities having
equity features.
The
Fund’s portfolio managers look primarily for high growth potential using a “bottom up”
investment approach on a company-by-company basis. That approach looks at the
investment performance of individual stocks before considering the impact of
general or industry specific economic trends. It includes fundamental analysis
of a company’s financial statements and management structure and consideration
of the company’s operations and product development, as well as its position in
its industry.
The
portfolio managers currently focus on the following factors: companies that
enjoy a strong competitive position and high demand for their products or
services; companies with accelerating earnings growth and cash flow; and
diversity among countries, companies and industries to seek to reduce the risks
of foreign investing, such as currency fluctuations and market volatility. The
consideration of those factors may vary in particular cases and may change over
time.
The
portfolio managers also consider the effects of worldwide trends on the growth of
particular business sectors and look for companies that may benefit from those
trends. The trends currently considered include: mass affluence, new
technologies, restructuring and aging. The portfolio managers do not invest any
fixed amount of the Fund’s assets according to these criteria, which may change
over time. The portfolio managers monitor individual issuers for changes in
these factors, which may trigger a decision to sell a security, but does not
require a decision to do so.
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.
4 Invesco
Oppenheimer V.I. International Growth Fund
◾
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.
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.
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
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
5 Invesco
Oppenheimer V.I. International Growth Fund
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.
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.
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 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
6 Invesco
Oppenheimer V.I. International Growth Fund
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.
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.
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.
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.
Fund Management
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.
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 0.78% 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:
◾
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 operations, Mr. Evans managed the predecessor fund
since 1999 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 2019 and has
been associated with Invesco and/or its affiliates since 2019. Prior to the
commencement of the Fund’s operations, Mr. Dunphy managed the predecessor fund
since 2012 and 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 the 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
Purchase
and Redemption of Shares
The Fund ordinarily
effects orders to purchase and redeem shares at the Fund’s next computed net
asset value (NAV) after it receives an order.
7 Invesco
Oppenheimer V.I. International Growth Fund
Insurance companies
participating in the Fund serve as the Fund’s designee for receiving orders of
separate accounts that invest in the Fund. The Fund may postpone the right of
redemption only under unusual circumstances, as allowed by the SEC, such as when
the New York Stock Exchange (NYSE) restricts or suspends trading.
Although
the Fund generally intends to pay redemption proceeds solely in cash, the Fund
reserves the right to determine, in its 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.
Shares
of the Fund are offered in connection with mixed and shared funding, i.e., to
separate accounts of affiliated and unaffiliated insurance companies funding
variable products. The Fund currently offers shares only to insurance company
separate accounts and funds of funds. In the future, the Fund may offer them to
pension and retirement plans that qualify for special federal income tax
treatment. Due to differences in tax treatment and other considerations, the
interests of Fund shareholders, including variable product owners and plan
participants investing in the Fund (whether directly or indirectly through fund
of funds), may conflict.
Mixed
and shared funding may present certain conflicts of interest. For example, violation
of the federal tax laws by one insurance company separate account investing
directly or indirectly in a fund could cause variable products funded through
another insurance company separate account to lose their tax-deferred status,
unless remedial actions were taken. The Board will monitor for the existence of
any material conflicts and determine what action, if any, should be taken. The
Fund’s NAV could decrease if it had to sell investment securities to pay
redemption proceeds to a separate account (or plan) withdrawing because of a
conflict.
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.
Excessive
Short-Term Trading Activity Disclosure
The Fund’s
investment programs are designed to serve long-term investors and are not
designed to accommodate excessive short-term trading activity in violation of
the Fund’s policies and procedures described below. Excessive short-term trading
activity in the Fund’s shares (i.e., purchases of Fund shares followed shortly
thereafter by redemptions of such shares, or vice versa) may hurt the long-term
performance of the Fund by requiring it to maintain an excessive amount of cash
or to liquidate portfolio holdings at a disadvantageous time, thus interfering
with the efficient management of the Fund by causing it 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 short-term trading of Fund shares. The Fund may alter its policies and
procedures at any time without giving prior notice to Fund shareholders if
Invesco believes the change would be in the best interests of long-term
investors.
Pursuant
to the Fund’s policies and procedures, 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 Fund:
(1)
trade activity monitoring; and
(2)
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.
In
addition, restrictions designed to discourage or curtail excessive short-term trading
activity may be imposed by the insurance companies and/or their separate
accounts that invest in the Fund on behalf of variable product owners. Variable
product owners should refer to the applicable contract and related prospectus
for more details.
Trade
Activity Monitoring
To detect excessive
short-term trading activities, the Invesco Affiliates will monitor, on a daily
basis, selected aggregate purchase or redemption trade orders placed by
insurance companies and/or their separate accounts. The Invesco Affiliates will
seek to work with insurance companies to discourage variable product owners from
engaging in abusive trading practices. However, the ability of the Invesco
Affiliates to monitor trades that are placed by variable product owners is
severely if not completely limited due to the fact that the insurance companies
trade with the Fund through omnibus accounts, and maintain the exclusive
relationship with, and are responsible for maintaining the account records of,
their variable product owners. There may also be legal and technological
limitations on the ability of insurance companies to impose restrictions on the
trading practices of their variable product owners. As a result, there can be no
guarantee that the Invesco Affiliates will be able to detect or deter market
timing by variable product owners.
If,
as a result of this monitoring, the Invesco Affiliates believe that a
variable product
owner has engaged in excessive short-term trading (regardless of whether or not
the insurance company’s own trading restrictions are exceeded), the Invesco
Affiliates 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
(1) asking the insurance company to take action to stop such activities, or
(2) refusing to process future purchases related to such activities in the
insurance company’s account with the Fund. The Invesco Affiliates will use
reasonable efforts to apply the Fund’s policies uniformly given the potential
limitations described above.
Fair
Value Pricing
Securities owned by
the Fund are to be valued at current market value if market quotations are
readily available. All other securities and assets of the 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.
See
“Pricing of Shares—Determination of Net Asset Value (NAV)” for more
information.
8 Invesco
Oppenheimer V.I. International Growth Fund
Risks
There is the risk
that the Fund’s policies and procedures will prove ineffective in whole or in
part to detect or prevent excessive short-term trading. Although these policies
and procedures, including the tools described above, are designed to discourage
excessive short-term trading, they do not eliminate the possibility that
excessive short-term trading activity in the Fund will occur. Moreover, each of
these tools involves judgments that are inherently subjective. The Invesco
Affiliates seek to make these judgments to the best of their abilities in a
manner that they believe is consistent with the best interests of long-term
investors. However, there can be no assurance that the Invesco Affiliates will
be able to gain access to any or all of the information necessary to detect or
prevent excessive short-term trading by a variable product owner. While the
Invesco Affiliates and the Fund may seek to take actions with the assistance of
the insurance companies that invest in the Fund, there is the risk that neither
the Invesco Affiliates nor the Fund will be successful in their efforts to
minimize or eliminate such activity.
Pricing
of Shares
Determination
of Net Asset Value (NAV)
The price of the
Fund’s shares is the Fund’s NAV per share. The Fund values 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 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 NAV. 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 a NAV that accurately
reflects the value of the 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 NAV of Fund shares is
determined only on business days of the Fund, the value of foreign securities
included in the Fund’s portfolio may change on days when the separate account to
which you have allocated variable product values 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 and
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. The Fund’s
short-term investments are valued at amortized cost when the security has
60 days or less to maturity.
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.
9 Invesco
Oppenheimer V.I. International Growth Fund
Open-end
Funds.
If the Fund invests in other open-end funds, other than open-end funds that are
exchange traded, the investing Fund will calculate its NAV using the NAV of the
underlying fund in which it invests. The Fund discloses portfolio holdings at
different times to insurance companies issuing variable products that invest in
the Fund, and in annual and semi-annual shareholder reports. Refer to such
reports to determine the types of securities in which the Fund has invested. You
may also refer to the SAI to determine what types of securities in which the
Fund may invest. You may obtain copies of these reports or of the SAI from the
insurance company that issued your variable product, or from the Adviser as
described on the back cover of this prospectus.
The
Fund 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 NYSE, the Fund
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.
Taxes
The Fund intends to
qualify each year as a regulated investment company and, as such, is not subject
to entity-level tax on the income and gain it distributes to shareholders.
Insurance company separate accounts may invest in the Fund and, in turn, may
offer variable products to investors through insurance contracts. Because the
insurance company separate accounts generally are the shareholders in the Fund,
all of the tax characteristics of the Fund’s investments flow into the separate
accounts and not to each variable product owner. The tax consequences from each
variable product owner’s investment in a variable product contract will depend
upon the provisions of these contracts, and variable product owners should
consult their contract prospectus for more information on these tax
consequences.
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.
Share
Classes
The Fund has two
classes of shares, Series I shares and Series II shares. Each class is
identical except that Series II shares have a distribution or
“Rule 12b-1 Plan” that is described below.
Distribution
Plan
The Fund has
adopted a distribution or “Rule 12b-1 Plan” for its Series II shares. The plan
allows the Fund to pay distribution fees to life insurance companies and others
to promote the sale and distribution of Series II shares. The plan provides for
a maximum fee equal to an annual rate of 0.25% (expressed as a percentage of
average daily net assets of the Fund). Because the Fund pays these fees out of
its assets on an ongoing basis, over time these fees will increase the cost of
your investment and may cost you more than paying other types of
charges.
Payments
to Insurance Companies
The insurance
company that issued your variable product, or one of its affiliates, may receive
all the Rule 12b-1 distribution fees discussed above. In addition to those
payments, Invesco Distributors, Inc., the distributor of the Fund and an Invesco
Affiliate, and other Invesco Affiliates may make cash payments to the insurance
company that issued your variable product or the insurance company’s affiliates
in connection with promotion of the Fund and certain other marketing support
services. Invesco Affiliates make these payments from their own resources.
Invesco Affiliates make these payments as incentives to certain insurance
companies or their affiliates to promote the sale and retention of shares of the
Fund. The benefits Invesco Affiliates receive when they make these payments may
include, among other things, adding the Fund to the list of underlying
investment options in the insurance company’s variable products, and access (in
some cases on a preferential basis over other competitors) to individual members
of an insurance company’s sales force or to an insurance company’s management.
These payments are sometimes referred to as “shelf space” payments because the
payments compensate the insurance company for including the Fund in its variable
products (on its “sales shelf”). Invesco Affiliates may also make payments to
insurance company affiliates for support, training and ongoing education for
sales personnel about the Fund, financial planning needs of Fund shareholders or
contract owners that allocate contract value directly or indirectly to the Fund,
marketing and advertising of the Fund, and access to periodic conferences held
by insurance company affiliates relating directly or indirectly to the Fund.
Invesco Affiliates compensate insurance companies or their affiliates
differently depending typically on the level and/or type of services provided by
the insurance companies or their affiliates. The payments Invesco Affiliates
make may be calculated on sales of shares of the Fund (Sales-Based Payments), in
which case the total amount of such payments shall not exceed 0.25% of the
offering price of all shares sold through variable products during the
particular period. Such payments also may be calculated on the average daily net
assets of the Fund attributable to that particular insurance company or its
affiliates (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 sales of shares
of the Fund and Asset-Based Payments primarily create incentives to retain
assets of the Fund in insurance company separate accounts or funds of
funds.
Invesco
Affiliates are motivated to make the payments described above in order to promote
the sale of Fund shares and the retention of those investments by clients of
insurance companies. To the extent insurance companies sell more shares of the
Fund or retain shares of the Fund in their variable product owners’ accounts,
Invesco Affiliates may directly or indirectly benefit from the incremental
management and other fees paid to Invesco Affiliates by the Fund with respect to
those assets.
In
addition to the payments listed above, Invesco may also make payments to
insurance companies for certain administrative services provided to the Fund.
These services may include, but are not limited to, maintenance of master
accounts with the Fund; tracking, recording and transmitting net purchase and
redemption orders for Fund shares; distributing redemption proceeds and
transmitting net purchase payments; reconciling purchase and redemption activity
and dividend and distribution payments between a master account and the Fund;
maintaining and preserving records related to the purchase, redemption and other
account activity of variable product owners; distributing copies of Fund
documents, such as prospectuses, proxy materials and periodic reports, to
variable product owners; assisting with proxy solicitations on behalf of the
Fund, including soliciting and compiling voting instructions from variable
contract owners; and responding to inquiries from variable contract owners about
the Fund. The Fund has agreed to reimburse Invesco for its payments made to
Insurance Companies to provide these services, up to an annual limit of 0.15% of
the average daily net assets invested in the Fund by each insurance company. Any
amounts paid by Invesco to an insurance company
10 Invesco
Oppenheimer V.I. International Growth Fund
in excess of 0.15%
of the average daily net assets invested in the Fund are paid by Invesco out of
its own financial resources, and not out of the Fund’s assets. Insurance
companies may earn profits on these payments for these services, since the
amount of the payments may exceed the cost of providing the service.
You
can find further details in the SAI about these payments and the services provided
by insurance companies or their affiliates. In certain cases these payments
could be significant to the insurance company or its affiliates. Your insurance
company may charge you additional fees or commissions on your variable product
other than those disclosed in this prospectus. You can ask your insurance
company about any payments it or its affiliates receive from Invesco Affiliates,
or the Fund, as well as about fees and/or commissions it charges. The prospectus
for your variable product may also contain additional information about these
payments.
11 Invesco
Oppenheimer V.I. International Growth Fund
Financial Highlights
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)
|
|
Series
I | ||||||||||||||
|
Year
ended 12/31/22 |
$2.92 |
$0.01 |
$(0.83) |
$(0.82) |
$— |
$(0.42) |
$(0.42) |
$1.68 |
(27.13)% |
$167,154 |
1.00% |
1.18% |
0.51% |
26% |
|
Year
ended 12/31/21 |
2.91 |
(0.00) |
0.30 |
0.30 |
— |
(0.29) |
(0.29) |
2.92 |
10.22 |
235,425 |
1.00 |
1.13 |
(0.16) |
22 |
|
Year
ended 12/31/20 |
2.45 |
(0.00) |
0.52 |
0.52 |
(0.02) |
(0.04) |
(0.06) |
2.91 |
21.50 |
230,463 |
1.00 |
1.15 |
(0.01) |
37 |
|
Year
ended 12/31/19 |
2.03 |
0.02 |
0.54 |
0.56 |
(0.02) |
(0.12) |
(0.14) |
2.45 |
28.60 |
221,944 |
1.00 |
1.13 |
0.91 |
51 |
|
Year
ended 12/31/18 |
2.59 |
0.02 |
(0.51) |
(0.49) |
(0.02) |
(0.05) |
(0.07) |
2.03 |
(19.42) |
267,220 |
1.00 |
1.10 |
0.83 |
25 |
|
| ||||||||||||||
|
Series
II | ||||||||||||||
|
Year
ended 12/31/22 |
3.06 |
0.01 |
(0.87) |
(0.86) |
— |
(0.42) |
(0.42) |
1.78 |
(27.17) |
147,359 |
1.25 |
1.43 |
0.26 |
26 |
|
Year
ended 12/31/21 |
3.04 |
(0.01) |
0.32 |
0.31 |
— |
(0.29) |
(0.29) |
3.06 |
10.12 |
208,901 |
1.25 |
1.38 |
(0.41) |
22 |
|
Year
ended 12/31/20 |
2.56 |
(0.01) |
0.55 |
0.54 |
(0.02) |
(0.04) |
(0.06) |
3.04 |
21.04 |
271,421 |
1.25 |
1.40 |
(0.26) |
37 |
|
Year
ended 12/31/19 |
2.12 |
0.02 |
0.56 |
0.58 |
(0.02) |
(0.12) |
(0.14) |
2.56 |
27.95 |
252,753 |
1.25 |
1.38 |
0.67 |
51 |
|
Year
ended 12/31/18 |
2.70 |
0.01 |
(0.52) |
(0.51) |
(0.02) |
(0.05) |
(0.07) |
2.12 |
(19.55) |
199,636 |
1.25 |
1.35 |
0.58 |
25 |
|
| ||||||||||||||
|
(a) |
Calculated
using average shares outstanding. |
|
(b) |
Includes
adjustments in accordance with accounting principles generally accepted in
the United States of America. Total returns are not annualized for periods
less than one year, if applicable and
do
not reflect charges assessed in connection with a variable product, which
if included would reduce total returns. |
|
(c) |
Does
not include indirect expenses from affiliated fund fees and expenses of
0.00% for the years ended December 31, 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. |
12 Invesco
Oppenheimer V.I. International Growth Fund
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. The
Fund’s most recent portfolio holdings, as filed on Form N-PORT, will also be
made available to insurance companies issuing variable products that invest in
the Fund.
If you have
questions about an Invesco Fund, 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 the
insurance company that issued your variable product, or you may contact
us.
|
By
Mail: |
Invesco
Distributors, 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: [email protected].
|
Invesco
Oppenheimer V.I. International Growth Fund
SEC 1940 Act file
number: 811-07452 |
|
invesco.com/us |
O-VIIGR-PRO-1 |