Prospectus
December
15, 2023
Class: A
(ACGIX ), C (ACGKX ), R
(ACGLX ), Y (ACGMX ), R5
(ACGQX ), R6 (GIFFX )
Invesco
Growth and Income Fund
As with all other
mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has
not approved or disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
An investment in
the Fund:
◾
is not FDIC
insured;
◾
may lose value;
and
◾
is not guaranteed
by a bank.
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Back
Cover |
Invesco
Growth and Income Fund
The Fund’s
investment objective is total return through growth of capital and current
income.
This table
describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a
shareholder may be required to pay directly to its financial intermediary when
buying or selling Class Y or Class R6 shares.
You may qualify for sales
charge discounts if you and your family invest, or agree to invest in the
future, at least $50,000 in the
Invesco Funds. More information about these and other discounts
is available from your financial professional and in the section “Shareholder
Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3
of the prospectus and the section “Purchase, Redemption and Pricing of Shares –
Purchase and Redemption of Shares” on page L-1 of the statement of additional
information (SAI).
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Class: |
A |
C |
R |
Y |
R5 |
R6 |
|
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) |
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% |
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Class: |
A |
C |
R |
Y |
R5 |
R6 |
|
Management
Fees |
% |
% |
% |
% |
% |
% |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Total
Annual Fund Operating Expenses |
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1
The
Example assumes that you invest $10,000 in the Fund for the time periods indicated
and then redeem all of your shares at the end of those periods. This Example
does not include commissions and/or other forms of compensation that investors
may pay on transactions in Class Y and Class R6 shares. The Example also assumes
that your investment has a 5% return each year and that the Fund’s operating
expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions, your
costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
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| ||||
|
Class
C |
$ |
$ |
$ |
$ |
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Class
R |
$ |
$ |
$ |
$ |
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Class
Y |
$ |
$ |
$ |
$ |
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Class
R5 |
$ |
$ |
$ |
$ |
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Class
R6 |
$ |
$ |
$ |
$ |
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|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
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|
Class
C |
$ |
$ |
$ |
$ |
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|
Class
R |
$ |
$ |
$ |
$ |
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|
Class
Y |
$ |
$ |
$ |
$ |
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|
Class
R5 |
$ |
$ |
$ |
$ |
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|
Class
R6 |
$ |
$ |
$ |
$ |
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Under normal market
conditions, the Fund’s investment adviser, Invesco Advisers, Inc. (Invesco or
the Adviser), seeks to achieve the Fund’s investment objective by investing
primarily in income-producing equity securities, which include common stocks and
convertible securities.
The
Fund may invest in securities of issuers of all capitalization sizes;
however, under
normal market conditions, it is currently expected that the Fund will invest a
substantial percentage of its assets in large-capitalization
issuers.
The
Fund may invest up to 15% of its net assets in real estate investment trusts
(REITs).
The
Fund may invest up to 25% of its net assets in securities of foreign
issuers, which may
include depositary receipts.
The
Fund can invest in derivative instruments including forward foreign currency contracts,
futures contracts and options.
The
Fund can use forward foreign currency contracts to hedge against adverse movements
in the foreign currencies in which portfolio securities are
denominated.
The
Fund can use futures contracts to seek exposure to certain asset classes and to
hedge against adverse movements in the foreign currencies in which portfolio
securities are denominated.
The
Fund can use options to seek investment
return
or to mitigate risk and to hedge against adverse movements in the foreign
currencies in which portfolio securities are denominated.
The
portfolio managers
emphasize a value style of investing, which focuses on undervalued companies
with characteristics for improved valuations. The portfolio managers look for
catalysts for change that may positively impact a company. This catalyst could
come from within the company in the form of new management, operational
enhancements, restructuring or reorganization. It could also be an external
factor such as an improvement in industry conditions or a regulatory change. The
aim is to uncover these catalysts for change, and then benefit from potential
stock price appreciation of the change taking place at the company.
The
Fund may dispose of a security when, in the opinion of the portfolio managers,
the security reaches the portfolio managers’ estimate of its value or when the
portfolio managers identify a more attractive investment
opportunity.
1 Invesco
Growth and Income Fund
can increase during
times of significant market volatility. The principal risks of investing in the
Fund are:
2 Invesco
Growth and Income Fund
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense
reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and capital gains
and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us .
Annual Total Returns
The bar chart does
not reflect sales loads. If it did, the annual total returns shown would be
lower.
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Class
A |
Period
Ended |
Returns |
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- |
Average Annual Total Returns (for the periods ended December 31, 2022)
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Inception
Date |
1
Year |
5
Years |
10
Years |
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Class
A |
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Return
Before Taxes |
|
-
% |
% |
% |
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Return
After Taxes on Distributions |
|
- |
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Return
After Taxes on Distributions and Sale of
Fund
Shares |
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- |
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Class
C |
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- |
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Class
R |
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- |
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Class
Y |
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- |
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Class
R5 |
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- |
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Class
R6 |
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- |
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|
Russell
1000®
Value Index for
fees, expenses or taxes) |
|
- |
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|
S&P
500®
Index (reflects no deduction for fees,
expenses
or taxes) |
|
- |
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Management
of the Fund
Investment Adviser:
Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title |
Length
of Service on the Fund |
Brian
Jurkash |
Portfolio
Manager (co-lead) |
2015 |
|
| ||
Matthew
Titus, CFA |
Portfolio
Manager (co-lead) |
2016 |
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Sergio
Marcheli |
Portfolio
Manager |
2010
(predecessor fund 2003)* |
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*Predecessor
fund refers to the Van Kampen Growth and Income Fund, which was
reorganized into the Fund after the close of business on June 1,
2010.
Purchase
and Sale of Fund Shares
You may purchase,
redeem or exchange shares of the Fund on any business day through your financial
adviser or by telephone at 800-959-4246. Shares of the Fund, other than Class R5
and Class R6 shares, may also be purchased, redeemed or exchanged on any
business day through our website at www.invesco.com/us or by mail to Invesco
Investment Services, Inc., P.O. Box 219078, Kansas City, MO
64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts are as
follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser |
None |
None |
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Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None |
None |
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IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25 |
$25 |
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All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50 |
50 |
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IRAs
and Coverdell ESAs |
250 |
25 |
|
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All
other accounts |
1,000 |
50 |
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial investment
for Employer Sponsored Retirement and Benefit Plans investing through a
retirement platform that administers at least $2.5 billion in retirement plan
assets. All other Employer Sponsored Retirement and Benefit Plans must meet a
minimum initial investment of at least $1 million in each Fund in which it
invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares, the minimum
initial investment in each share class is $1 million, unless such investment is
made by (i) an investment company, as defined
3 Invesco
Growth and Income Fund
under the
Investment Company Act of 1940, as amended (1940 Act), that is part of a family
of investment companies which own in the aggregate at least $100 million in
securities, or (ii) an account established with a 529 college savings plan
managed by Invesco, in which case there is no minimum initial
investment.
There
are no minimum investment amounts for Class R6 shares held through retail
omnibus accounts maintained by an intermediary, such as a broker, that (i)
generally charges an asset-based fee or commission in addition to those
described in this prospectus, and (ii) maintains Class R6 shares and makes them
available to retail investors.
Tax
Information
The Fund’s
distributions generally are taxable to you as ordinary income, capital gains, or
some combination of both, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan, 529 college savings plan or individual
retirement account. Any distributions from a 401(k) plan or individual
retirement account may be taxed as ordinary income when withdrawn from such plan
or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Fund through a broker-dealer or other financial intermediary (such as a bank),
the Fund, the Fund’s distributor or its related companies may pay the
intermediary for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson or financial adviser to recommend the Fund
over another investment. Ask your salesperson or financial adviser or visit your
financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The Fund’s
investment objective is total return through growth of capital and current
income. The Fund’s investment objective may be changed by the Board of Trustees
(the Board) without shareholder approval.
Under
normal market conditions, the Adviser seeks to achieve the Fund’s investment
objective by investing primarily in income-producing equity securities, which
include common stocks and convertible securities.
The
Fund may invest in securities of issuers of all capitalization sizes;
however, under
normal market conditions, it is currently expected that the Fund will invest a
substantial percentage of its assets in large-capitalization
issuers.
The
Fund considers a
large-capitalization issuer to be one that has a market capitalization, at the
time of purchase, within the range of market capitalizations of the largest and
smallest capitalized companies included in the Russell 1000® Index during the
most recent 11-month period (based on month-end data) plus the most recent data
during the current month. A company’s “market capitalization” is the value of
its outstanding stock.
The
Fund may invest up to 15% of its net assets in REITs. REITs pool investors’ funds
for investment primarily in commercial real estate properties or real estate
related loans. REITs generally derive their income from rents on the underlying
properties or interest on the underlying loans, and their value is impacted by
changes in the value of the underlying property or changes in interest rates
affecting the underlying loans owned by the REITs.
The
Fund may invest up to 25% of its net assets in securities of foreign
issuers, which may
include depositary receipts. A depositary receipt is generally issued by a bank
or financial institution and represents an ownership interest in the common
stock or other equity securities of a foreign company.
The
Fund can invest in derivative instruments including forward foreign currency contracts,
futures contracts and options.
A
forward foreign currency contract is an agreement between parties to
exchange a
specified amount of currency at a specified future time at a specified rate. The
Fund can use forward foreign currency contracts to hedge against adverse
movements in the foreign currencies in which portfolio securities are
denominated.
A
futures contract is a standardized agreement between two parties to buy or sell a
specified quantity of an underlying asset at a specified price at a specified
future time. The value of the futures contract tends to increase and decrease in
tandem with the value of the underlying asset. Futures contracts are bilateral
agreements, with both the purchaser and the seller equally obligated to complete
the transaction. Depending on the terms of the particular contract, futures
contracts are settled by purchasing an offsetting contract, physically
delivering the underlying asset on the settlement date or paying a cash
settlement amount on the settlement date. The Fund can use futures contracts to
seek exposure to certain asset classes and to hedge against adverse movements in
the foreign currencies in which portfolio securities are
denominated.
An
option is a derivative financial instrument that reflects a contract
between two parties
for a future transaction on an asset at a reference price. The buyer of the
option gains the right, but not the obligation, to engage in that transaction,
while the seller incurs the corresponding obligation to fulfill the transaction.
The price of an option derives from the difference between the reference price
and the value of the underlying asset (commonly a stock, a bond, a currency or a
futures contract) plus a premium based on the time remaining until the
expiration of the option. Other types of options exist, and options can in
principle be created for any type of valuable asset. The Fund can use options to
seek investment
return
or to mitigate risk and to hedge against adverse movements in the foreign
currencies in which portfolio securities are denominated.
The
portfolio managers
emphasize a value style of investing, which focuses on undervalued companies
with characteristics for improved valuations. The portfolio managers look for
catalysts for change that may positively impact a company. This catalyst could
come from within the company in the form of new management, operational
enhancements, restructuring or reorganization. It could also be an external
factor such as an improvement in industry conditions or a regulatory change. The
aim is to uncover these catalysts for change, and then benefit from potential
stock price appreciation of the change taking place at the company.
The
Fund may dispose of a security when, in the opinion of the portfolio managers,
the security reaches the portfolio managers’ estimate of its value or when the
portfolio managers identify a more attractive investment
opportunity.
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
4 Invesco
Growth and Income Fund
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.
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.
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.
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.
Depositary
Receipts Risk. Depositary
receipts involve many of the same risks as those associated with direct
investment in foreign securities. In addition, the underlying issuers of certain
depositary receipts, particularly unsponsored or unregistered depositary
receipts, are under no obligation to distribute shareholder communications to
the holders of such receipts or to pass through to them any voting rights with
respect to the deposited
5 Invesco
Growth and Income Fund
securities. The
Fund may therefore receive less timely information or have less control than if
it invested directly in the foreign issuer.
Small-
and Mid-Capitalization Companies Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
Stocks of small- and mid-capitalization companies tend to be more vulnerable to
changing market conditions, may have little or no operating history or track
record of success, and may have more limited product lines and markets, less
experienced management and fewer financial resources than larger companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s
earnings expectations and may experience more abrupt and erratic price
movements. Smaller companies’ securities often trade in lower volumes and in
many instances, are traded over-the-counter or on a regional securities
exchange, where the frequency and volume of trading is substantially less than
is typical for securities of larger companies traded on national securities
exchanges. Therefore, the securities of smaller companies may be subject to
wider price fluctuations and it might be harder for the Fund to dispose of its
holdings at an acceptable price when it wants to sell them. In addition,
investors might seek to trade Fund shares based on their knowledge or
understanding of the value of smaller company securities (this is sometimes
referred to as “price arbitrage”), which could interfere with the efficient
management of the Fund. Since small and mid-cap companies typically reinvest a
high proportion of their earnings in their business, they may not pay dividends
for some time, particularly if they are newer companies. It may take a
substantial period of time to realize a gain on an investment in a small- or
mid-cap company, if any gain is realized at all. The relative sizes of companies
may change over time as the securities market changes, and the Fund is not
required to sell the securities of companies whose market capitalizations have
grown or decreased due to market fluctuations.
Sector
Focus Risk. The Fund may from
time to time have a significant amount of its assets invested in one market
sector or group of related industries. The prices of stocks of issuers in a
sector or group of industries may go up and down in response to changes in
economic conditions, government regulations, availability of basic resources or
supplies, or other events that affect that industry or sector more than others.
In this event, the Fund’s performance will depend to a greater extent on the
overall condition of the sector or group of industries and there is increased
risk that the Fund will lose significant value if conditions adversely affect
that sector or group of industries. Information about the Fund’s investment in a
market sector or group of industries is available in its annual and semi-annual
reports to shareholders and in its reports on Form N-PORT filed with the
SEC.
REIT
Risk/Real Estate Risk.
Investments in real
estate related instruments may be adversely affected by economic, legal,
cultural, environmental or technological factors that affect property values,
rents or occupancies. Real estate companies, including REITs or similar
structures, tend to be small- and mid-cap companies and their shares may be more
volatile and less liquid than larger companies. The value of investments in real
estate related companies may be affected by the quality of management, the
ability to repay loans, the utilization of leverage and financial covenants
related thereto, whether the company carries adequate insurance and
environmental factors. If a real estate related company defaults on certain
types of debt obligations held by the Fund, the Fund may acquire real estate
directly, which involves additional risks such as environmental liabilities;
difficulty in valuing and selling the real estate; and economic or regulatory
changes.
Derivatives
Risk. A derivative is an
instrument whose value depends largely on (and is derived from) the value of an
underlying security, currency, commodity, interest rate, index or other asset
(each referred to as an underlying asset). In addition to risks relating to the
underlying assets, the use of derivatives may include other, possibly greater,
risks, which are described below.
◾
Counterparty
Risk. Certain
derivatives do not trade on an established exchange (referred to as
over-the-counter (OTC) derivatives) and are simply financial contracts between
the Fund and a counterparty. When the Fund is owed money on an OTC derivative,
the Fund is dependent on the counterparty to pay or, in some cases, deliver the
underlying asset, unless the Fund can otherwise sell its derivative contract to
a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and
ability to pay or perform) may be negatively impacted by factors affecting
financial institutions generally. In addition, in the event that a counterparty
becomes bankrupt or insolvent, the Fund’s ability to recover the collateral that
the Fund has on deposit with the counterparty could be delayed or impaired. For
derivatives traded on a centralized exchange, the Fund generally is dependent
upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on
derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives
do not require a payment up front equal to the economic exposure created by
holding a position in the derivative, which creates a form of leverage. As a
result, an adverse change in the value of the underlying asset could result in
the Fund sustaining a loss that is substantially greater than the amount
invested in the derivative or the anticipated value of the underlying asset. In
addition, some derivatives have the potential for unlimited loss, regardless of
the size of the Fund’s initial investment. Leverage may therefore make the
Fund’s returns more volatile and increase the risk of loss. In certain market
conditions, losses on derivative instruments can grow larger while the value of
the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller
pool of buyers and sellers for certain derivatives, particularly OTC
derivatives, than more traditional investments such as stocks. These buyers and
sellers are often financial institutions that may be unable or unwilling to buy
or sell derivatives during times of financial or market stress. Derivative
instruments may therefore be less liquid than more traditional investments and
the Fund may be unable to sell or exit its derivative positions at a desirable
time or price. This risk may be more acute under adverse market conditions,
during which the Fund may be most in need of liquidating its derivative
positions. To the extent that the Fund is unable to exit a derivative position
because of market illiquidity, the Fund may not be able to prevent further
losses of value in its derivatives holdings and the liquidity of the Fund and
its ability to meet redemption requests may be impaired to the extent that a
substantial portion of the Fund’s otherwise liquid assets must be used as
margin. Another consequence of illiquidity is that the Fund may be required to
hold a derivative instrument to maturity and take or make delivery of the
underlying asset that the Adviser would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign
currency contracts are used to lock in the U.S. dollar price of a security
denominated in a foreign currency or protect against possible losses from
changes in the relative value of the U.S. dollar against a foreign currency.
They are subject to the risk that anticipated currency movements will not be
accurately predicted or do not correspond accurately to changes in the value of
the fund's holdings, which could result in losses and additional transaction
costs. The use of forward contracts could reduce performance if there are
unanticipated changes in currency prices. A contract to sell a foreign currency
would limit any potential gain that might be realized if the value of the
currency increases. A forward foreign currency contract may also result in
losses in the event of a default or bankruptcy of the counterparty.
6 Invesco
Growth and Income Fund
◾
Futures
Contracts Risk. The volatility of
futures contracts prices has been historically greater than the volatility of
stocks and bonds. The liquidity of the futures market depends on participants
entering into offsetting transactions rather than making or taking delivery. To
the extent participants decide to make or take delivery, liquidity in the
futures market could be reduced. In addition, futures exchanges often impose a
maximum permissible price movement on each futures contract for each trading
session. The Fund may be disadvantaged if it is prohibited from executing a
trade outside the daily permissible price movement.
◾
Options
Risk.
If the Fund sells a put option, there is a risk that the Fund may be required to
buy the underlying investment at a disadvantageous price. If the Fund sells a
call option, there is a risk that the Fund may be required to sell the
underlying investment at a disadvantageous price. If the Fund sells a call
option on an investment that the Fund owns (a “covered call”) and the investment
has increased in value when the option is exercised, the Fund will be required
to sell the investment at the call price and will not be able to realize any of
the investment’s value above the call price. Options may involve economic
leverage, which could result in greater price volatility than other
investments.
◾
Other
Risks. Compared to other
types of investments, derivatives may be harder to value and may also be less
tax efficient, as described under the “Taxes” section of the prospectus. In
addition, changes in government regulation of derivative instruments could
affect the character, timing and amount of the Fund’s taxable income or gains,
and may limit or prevent the Fund from using certain types of derivative
instruments as a part of its investment strategy, which could make the
investment strategy more costly to implement or require the Fund to change its
investment strategy. Derivatives strategies may not always be successful.
For example, to the extent that the Fund uses derivatives for hedging or to gain
or limit exposure to a particular market or market segment, there may be
imperfect correlation between the value of the derivative instrument and the
value of the instrument being hedged or the relevant market or market segment,
in which case the Fund may not realize the intended benefits. There is also the
risk that during adverse market conditions, an instrument which would usually
operate as a hedge provides no hedging benefits at all. The Fund’s use of
derivatives may be limited by the requirements for taxation of the Fund as a
regulated investment company.
Value
Investing Risk. Value investing
entails the risk that if the market does not recognize that a selected security
is undervalued, the prices of that security might not appreciate as anticipated.
A value investing approach could also lead to acquiring fewer securities that
might experience rapid price increases during times of market advances. This
could cause the investments to underperform strategies that seek capital
appreciation by employing only a growth or other non-value approach. Value
investing has also gone in and out of favor during past market cycles and is
likely to continue to do so. During periods when value investing is out of favor
or when markets are unstable, the securities of value companies may underperform
the securities of growth companies or the overall stock market.
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.
Exclusion
of Adviser from Commodity Pool Operator Definition
With respect to the
Fund, the Adviser has claimed an exclusion from the definition of “commodity
pool operator” (CPO) under the Commodity Exchange Act (CEA) and the rules of the
Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to
CFTC registration or regulation as a CPO. In addition, the Adviser is relying
upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the
Fund.
The
terms of the CPO exclusion require the Fund, among other things, to adhere to
certain limits on its investments in “commodity interests.” Commodity interests
include commodity futures, commodity options and swaps, which in turn include
non-deliverable forwards. The Fund is permitted to invest in these instruments
as further described in the Fund’s SAI. However, the Fund is not intended as a
vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on
these exclusions, or the Fund, its investment strategies or this
prospectus.
Adviser
Compensation
During the fiscal
year ended August 31, 2023, the Adviser received compensation of 0.36% of
the Fund’s average daily net assets, after fee waiver and/or expense
reimbursement, if any.
A
discussion regarding the basis for the Board’s approval of the investment advisory
agreement and investment sub-advisory agreements of the Fund is available in the
Fund’s most recent annual or semi-annual report to shareholders.
Portfolio
Managers
The following
individuals are jointly and primarily responsible for the day-to-day management
of the Fund’s portfolio:
◾
Brian Jurkash
(co-lead manager), Portfolio Manager, who has been responsible for the Fund
since 2015 and has been associated with Invesco and/or its affiliates since
2000.
◾
Matthew Titus, CFA
(co-lead manager), Portfolio Manager, who has been responsible for the Fund
since 2016 and has been associated with Invesco and/or its affiliates since
2016.
◾
Sergio Marcheli,
Portfolio Manager, who has been responsible for the Fund since 2010 and has been
associated with Invesco and/or its affiliates since 2010. Mr. Marcheli served as
Portfolio Manager of the predecessor fund since 2003.
7 Invesco
Growth and Income Fund
A
lead or co-lead manager generally has final authority over all aspects
of the
Fund’s investment portfolio, including but not limited to, purchases and sales
of individual securities, portfolio construction techniques, portfolio risk
assessment, and the management of daily cash flows in accordance with portfolio
holdings. The degree to which a lead or co-lead manager may perform these
functions, and the nature of these functions, may change from time to
time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund’s SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and
information regarding other accounts managed.
Other Information
Sales
Charges
Purchases of Class
A shares of the Fund are subject to the maximum 5.50% initial sales charge as
listed under the heading “Category I Initial Sales Charges” in the “Shareholder
Account Information—Initial Sales Charges (Class A Shares Only)” section of the
prospectus. Purchases of Class C shares are subject to a contingent deferred
sales charge (CDSC) if you sell Class C shares within one year of purchase;
however, the CDSC shall not apply to the purchases of Class C shares where the
selling broker-dealer was not paid a commission at the time of purchase. For
more information on CDSCs, see the “Shareholder Account Information—Contingent
Deferred Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The Fund expects,
based on its investment objective and strategies, that its distributions, if
any, will consist of ordinary income, capital gains or some combination of
both.
Dividends
The Fund generally
declares and pays dividends from net investment income, if any,
quarterly.
Capital
Gains Distributions
The Fund generally
distributes long-term and short-term capital gains (net of any available capital
loss carryovers), if any, at least annually. Capital gains distributions may
vary considerably from year to year as a result of the Fund's normal investment
activities and cash flows. During a time of economic volatility, the Fund may
experience capital losses and unrealized depreciation in value of investments,
the effect of which may be to reduce or eliminate capital gains distributions
for a period of time. Even though the Fund may experience a current year loss,
it may nonetheless distribute prior year capital gains.
8 Invesco
Growth and Income Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or,
if shorter, the period of operations of the Fund or any of its share classes.
The financial highlights table is intended to help you understand the Fund’s
financial performance. Certain information reflects financial results for a
single Fund share.
The
total returns in the table represent the rate that an investor would
have
earned (or lost) on an investment in the Fund (assuming reinvestment of all
dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial
statements, is included in the Fund’s annual report, which is available upon
request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized) |
Total
from
investment
operations |
Dividends
from
net
investment
income |
Distributions
from
net
realized
gains |
Total
distributions |
Net
asset
value,
end
of
period |
Total
return(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or expenses
absorbed |
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or expenses
absorbed |
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | ||||||||||||||
Year
ended 08/31/23 |
$22.20 |
$0.33 |
$1.36 |
$1.69 |
$(0.38) |
$(2.14) |
$(2.52) |
$21.37 |
8.00% |
$2,438,756 |
0.79% |
0.79% |
1.57% |
21% |
|
Year
ended 08/31/22 |
28.10 |
0.32 |
(1.13) |
(0.81) |
(0.29) |
(4.80) |
(5.09) |
22.20 |
(3.90) |
2,499,911 |
0.78 |
0.78 |
1.28 |
23 |
Year
ended 08/31/21 |
20.01 |
0.30 |
8.63 |
8.93 |
(0.35) |
(0.49) |
(0.84) |
28.10 |
45.62 |
2,844,145 |
0.80 |
0.80 |
1.22 |
33 |
|
Year
ended 08/31/20 |
22.89 |
0.41 |
(1.24) |
(0.83) |
(0.44) |
(1.61) |
(2.05) |
20.01 |
(4.39) |
2,609,002 |
0.81 |
0.81 |
1.97 |
26 |
Year
ended 08/31/19 |
27.50 |
0.44 |
(2.02) |
(1.58) |
(0.43) |
(2.60) |
(3.03) |
22.89 |
(4.99) |
3,386,466 |
0.81 |
0.81 |
1.84 |
23 |
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 08/31/23 |
21.77 |
0.18 |
1.33 |
1.51 |
(0.21) |
(2.14) |
(2.35) |
20.93 |
7.25(d) |
29,875 |
1.52(d) |
1.52(d) |
0.84(d) |
21 |
Year
ended 08/31/22 |
27.69 |
0.13 |
(1.09) |
(0.96) |
(0.16) |
(4.80) |
(4.96) |
21.77 |
(4.58)(d)
|
32,497 |
1.52(d)
|
1.52(d)
|
0.54(d)
|
23 |
|
Year
ended 08/31/21 |
19.73 |
0.12 |
8.51 |
8.63 |
(0.18) |
(0.49) |
(0.67) |
27.69 |
44.53(d)
|
39,357 |
1.50(d)
|
1.50(d)
|
0.52(d)
|
33 |
Year
ended 08/31/20 |
22.57 |
0.25 |
(1.20) |
(0.95) |
(0.28) |
(1.61) |
(1.89) |
19.73 |
(5.05) |
38,808 |
1.56 |
1.56 |
1.22 |
26 |
|
Year
ended 08/31/19 |
27.15 |
0.27 |
(2.00) |
(1.73) |
(0.25) |
(2.60) |
(2.85) |
22.57 |
(5.67)(d)
|
76,522 |
1.53(d)
|
1.53(d)
|
1.12(d)
|
23 |
|
| ||||||||||||||
|
Class
R | ||||||||||||||
Year
ended 08/31/23 |
22.23 |
0.28 |
1.36 |
1.64 |
(0.32) |
(2.14) |
(2.46) |
21.41 |
7.75 |
53,250 |
1.04 |
1.04 |
1.32 |
21 |
|
Year
ended 08/31/22 |
28.13 |
0.25 |
(1.13) |
(0.88) |
(0.22) |
(4.80) |
(5.02) |
22.23 |
(4.14) |
51,354 |
1.03 |
1.03 |
1.03 |
23 |
Year
ended 08/31/21 |
20.03 |
0.24 |
8.64 |
8.88 |
(0.29) |
(0.49) |
(0.78) |
28.13 |
45.26 |
60,808 |
1.05 |
1.05 |
0.97 |
33 |
|
Year
ended 08/31/20 |
22.90 |
0.36 |
(1.23) |
(0.87) |
(0.39) |
(1.61) |
(2.00) |
20.03 |
(4.60) |
61,342 |
1.06 |
1.06 |
1.72 |
26 |
Year
ended 08/31/19 |
27.52 |
0.38 |
(2.03) |
(1.65) |
(0.37) |
(2.60) |
(2.97) |
22.90 |
(5.27) |
84,224 |
1.06 |
1.06 |
1.59 |
23 |
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 08/31/23 |
22.22 |
0.39 |
1.35 |
1.74 |
(0.43) |
(2.14) |
(2.57) |
21.39 |
8.28 |
349,894 |
0.54 |
0.54 |
1.82 |
21 |
Year
ended 08/31/22 |
28.12 |
0.38 |
(1.12) |
(0.74) |
(0.36) |
(4.80) |
(5.16) |
22.22 |
(3.63) |
427,166 |
0.53 |
0.53 |
1.53 |
23 |
|
Year
ended 08/31/21 |
20.03 |
0.36 |
8.63 |
8.99 |
(0.41) |
(0.49) |
(0.90) |
28.12 |
45.94 |
517,664 |
0.55 |
0.55 |
1.47 |
33 |
Year
ended 08/31/20 |
22.91 |
0.47 |
(1.24) |
(0.77) |
(0.50) |
(1.61) |
(2.11) |
20.03 |
(4.12) |
477,858 |
0.56 |
0.56 |
2.22 |
26 |
|
Year
ended 08/31/19 |
27.53 |
0.50 |
(2.03) |
(1.53) |
(0.49) |
(2.60) |
(3.09) |
22.91 |
(4.78) |
938,866 |
0.56 |
0.56 |
2.09 |
23 |
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
Year
ended 08/31/23 |
22.25 |
0.40 |
1.36 |
1.76 |
(0.44) |
(2.14) |
(2.58) |
21.43 |
8.36 |
329,238 |
0.49 |
0.49 |
1.87 |
21 |
|
Year
ended 08/31/22 |
28.16 |
0.39 |
(1.13) |
(0.74) |
(0.37) |
(4.80) |
(5.17) |
22.25 |
(3.62) |
397,345 |
0.48 |
0.48 |
1.58 |
23 |
Year
ended 08/31/21 |
20.06 |
0.38 |
8.64 |
9.02 |
(0.43) |
(0.49) |
(0.92) |
28.16 |
46.04 |
438,989 |
0.47 |
0.47 |
1.55 |
33 |
|
Year
ended 08/31/20 |
22.94 |
0.49 |
(1.24) |
(0.75) |
(0.52) |
(1.61) |
(2.13) |
20.06 |
(4.03) |
443,315 |
0.48 |
0.48 |
2.30 |
26 |
Year
ended 08/31/19 |
27.56 |
0.52 |
(2.03) |
(1.51) |
(0.51) |
(2.60) |
(3.11) |
22.94 |
(4.70) |
746,385 |
0.48 |
0.48 |
2.17 |
23 |
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 08/31/23 |
22.25 |
0.41 |
1.37 |
1.78 |
(0.46) |
(2.14) |
(2.60) |
21.43 |
8.45 |
803,225 |
0.42 |
0.42 |
1.94 |
21 |
Year
ended 08/31/22 |
28.16 |
0.41 |
(1.13) |
(0.72) |
(0.39) |
(4.80) |
(5.19) |
22.25 |
(3.55) |
931,558 |
0.41 |
0.41 |
1.65 |
23 |
|
Year
ended 08/31/21 |
20.06 |
0.39 |
8.65 |
9.04 |
(0.45) |
(0.49) |
(0.94) |
28.16 |
46.16 |
1,102,312 |
0.40 |
0.40 |
1.62 |
33 |
Year
ended 08/31/20 |
22.94 |
0.50 |
(1.23) |
(0.73) |
(0.54) |
(1.61) |
(2.15) |
20.06 |
(3.93) |
1,147,101 |
0.39 |
0.39 |
2.39 |
26 |
|
Year
ended 08/31/19 |
27.57 |
0.54 |
(2.04) |
(1.50) |
(0.53) |
(2.60) |
(3.13) |
22.94 |
(4.64) |
1,494,527 |
0.38 |
0.38 |
2.27 |
23 |
|
| ||||||||||||||
|
(a) |
Calculated
using average shares outstanding. |
|
(b) |
Includes
adjustments in accordance with accounting principles generally accepted in
the United States of America and as such, the net asset value for
financial reporting purposes and the returns
based
upon those net asset values may differ from the net asset value and
returns for shareholder transactions. Does not include sales charges and
is not annualized for periods less than one
year,
if applicable. |
|
(c) |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if applicable. |
|
(d) |
The
total return, ratio of expenses to average net assets and ratio of net
investment income to average net assets reflect actual 12b-1 fees of
0.98%, 0.99%, 0.95% and 0.96% for the years
ended
August 31, 2023, 2022, 2021 and 2019,
respectively. |
9 Invesco
Growth and Income Fund
Shareholder Account Information
In addition to the
Fund(s), the Adviser serves as investment adviser to many other Invesco mutual
funds that are offered to investors (Invesco Funds or Funds). The following
information is about the Invesco Funds and their share classes that have
different fees and expenses. Certain Invesco Funds have their own “Shareholder
Account Information Section” that should be consulted for specific information
related to those Funds.
Some
investments in the Funds are made through accounts that are maintained by
intermediaries (and not in the name of an individual investor) and some
investments are made indirectly through products that use the Funds as
underlying investments, such as Retirement and Benefit Plans, funds of funds,
qualified tuition plans, and variable insurance contracts (these products are
generally referred to as conduit investment vehicles). If shares of the Funds
are held in an account maintained by an intermediary or in the name of a conduit
investment vehicle (and not in the name of an individual investor), the
intermediary or conduit investment vehicle may impose rules that differ from,
and/or charge a transaction or other fee in addition to, those described in this
prospectus. As a result, the availability of certain share classes and/or
shareholder privileges or services described in this prospectus will depend on
the policies, procedures and trading platforms of the financial intermediary or
conduit investment vehicle. Accordingly, through your financial intermediary you
may be invested in a share class that is subject to higher annual fees and
expenses than other share classes that are offered in this prospectus. Investing
in a share class subject to higher annual fees and expenses may have an adverse
impact on your investment return. Please consult your financial adviser to
consider your options, including your eligibility to qualify for the share
classes and/or shareholder privileges or services described in this
prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial
intermediaries or for notifying shareholders of any changes to them. Please
consult your financial adviser or other financial intermediary for
details.
Unless
otherwise provided, the following are certain defined terms used throughout this
prospectus:
◾
Employer Sponsored
Retirement and Benefit Plans include (i) employer sponsored pension or profit
sharing plans that qualify under section
401(a) of the
Internal Revenue Code of 1986, as amended (the Code), including 401(k), money
purchase pension, profit sharing and defined benefit plans; (ii) 403(b) and
non-qualified deferred compensation arrangements that operate similar to plans
described under (i) above, such as 457 plans and executive deferred compensation
arrangements; (iii) health savings accounts maintained pursuant to Section 223
of the Code; and (iv) voluntary employees’ beneficiary arrangements
maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer Sponsored
IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified
Employee Pension (SAR-SEP), and Savings Incentive Match Plan for Employees of
Small Employers (SIMPLE) IRAs.
◾
Retirement and
Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and
Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on the Internet at
www.invesco.com/us. To access your account, go to the tab for “Account &
Services,” then click on “Accounts Overview.” For additional information about
Invesco Funds, consult the Fund’s prospectus and SAI, which are available on
that same website or upon request free of charge. The website is not part of
this prospectus.
Choosing
a Share Class
Each Fund may offer
multiple classes of shares and not all Funds offer all share classes discussed
herein. Each class represents an interest in the same portfolio of investments.
Certain classes have higher expenses than other classes which may lower the
return on your investment when compared to a less expensive class. In deciding
which class of shares to purchase, you should consider the following attributes
of the various share classes, among other things: (i) the eligibility
requirements that apply to purchases of a particular class and any eligibility
requirements of your financial intermediary, (ii) the initial sales charges
and contingent deferred sales charges (CDSCs), if any, applicable to the class,
(iii) the 12b-1 fee, if any, paid by the class, and (iv) any services
you may receive from a financial intermediary. Please contact your financial
adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s
share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A
shares |
A-1 The
Invesco Funds
MCF—12/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short
Term Municipal Fund do not have initial sales charges or CDSCs on redemptions in
most cases.
2
Class A2 shares of
Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco
Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S.
Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund
Class A shares and Invesco Short Duration Inflation Protected Fund Class A2
shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class A
shares have a 12b-1 fee of 0.10%.
3
The 12b-1 fee for
Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses
of the Fund—Annual Fund Operating Expenses” section of this prospectus reflects
the actual 12b-1 fees paid by a Fund.
4
Your financial
intermediary may have additional eligibility criteria for Class R shares. Please
see the “Financial Intermediary- Specific Arrangements” section of this
prospectus for further information.
In addition to the
share classes shown in the chart above, the following Funds offer the following
additional share classes further described in this prospectus:
◾
Investor Class
shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco
Energy Fund, Invesco EQV European Equity Fund, Invesco Health Care Fund, Invesco
High Yield Fund, Invesco Income Fund, Invesco Income Advantage U.S. Fund,
Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco
Real Estate Fund, Invesco Small Cap Growth Fund, Invesco Technology Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio.
◾
Class A2 shares:
Invesco Short Duration Inflation Protected Fund and Invesco Limited Term
Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class P shares:
Invesco Summit Fund;
◾
Class S shares:
Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor
Fund, Invesco Select Risk: Growth Investor Fund, Invesco Select Risk: Moderate
Investor Fund and Invesco Summit Fund; and
◾
Invesco Cash
Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government
Money Portfolio.
Share
Class Eligibility
The availability of
certain share classes will depend on how you purchased your shares.
Intermediaries may have different policies regarding the availability of certain
share classes than those described below. You should consult your financial
adviser to consider your options, including your eligibility to qualify for the
share classes described below. The Fund is not responsible for eligibility
requirements imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Financial Intermediary-Specific Arrangements” for
more information on certain intermediary-specific eligibility requirements.
Please
consult with your financial intermediary if you have any questions regarding
their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A, C and
Invesco Cash Reserve Shares are generally available to all retail investors,
including individuals, trusts, corporations, business and charitable
organizations and Retirement and Benefit Plans. Investors may only open an
account to purchase Class C shares if they have appointed a financial
intermediary that allows for new accounts in Class C shares to be opened. This
restriction does not apply to Employer Sponsored Retirement and Benefit Plans.
The share classes offer different fee structures that are intended to compensate
financial intermediaries for services provided in connection with the sale of
shares and continued maintenance of the customer relationship. You should
consider the services provided by your financial adviser and any other financial
intermediaries who will be involved in the servicing of your account when
choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and
Invesco Limited Term Municipal Income Fund, are closed to new investors. All
references in this “Shareholder Account Information” section of this prospectus
to Class A shares shall include Class A2 shares, unless otherwise
noted.
Class AX
and CX Shares
Class AX and
CX shares are closed to new investors. Only investors who have continuously
maintained an account in Class AX or CX of Invesco Government Money Market
Fund may make additional purchases into Class AX and CX, respectively, of
Invesco Government Money Market Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares
of the Invesco Funds shall include CX
shares
of Invesco Government Money Market Fund, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco
Cash Reserve Shares of Invesco Government Money Market Fund shall include
Class AX shares of Invesco Government Money Market Fund, unless otherwise
noted.
Class P
Shares
In addition to the
other share classes discussed herein, the Invesco Summit Fund offers
Class P shares, which were historically sold only through the AIM Summit
Investors Plans I and II (each a Plan and, collectively, the Summit Plans).
Class P shares are sold with no initial sales charge and have a 12b-1 fee
of 0.10%. However, Class P shares are not sold to members of the general
public. Only shareholders who had accounts in the Summit Plans at the close of
business on December 8, 2006 may purchase Class P shares and only
until the total of their combined investments in the Summit Plans and in
Class P shares directly equals the face amount of their former Plan under
the 30 year extended investment option. The face amount of a Plan is the
combined total of all scheduled monthly investments under the Plan. For a Plan
with a scheduled monthly investment of $100.00, the face amount would have been
$36,000.00 under the 30 year extended investment option.
Class R
Shares
Class R shares
are intended for Retirement and Benefit Plans. Certain financial intermediaries
have additional eligibility criteria regarding Class R shares. If you received
Class R shares as a result of a merger or reorganization of a predecessor fund
into any of the Funds, you will be permitted to make additional Class R shares
purchases.
Class
R5 and R6 Shares
Class R5 and R6
shares of the Funds are available for use by Employer Sponsored Retirement and
Benefit Plans, held either at the plan level or through omnibus accounts, that
generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds,
entities acting for the account of a public entity (e.g., Taft-Hartley funds,
states, cities or government agencies), funds of funds or other pooled
A-2 The
Invesco Funds
investment
vehicles, 529 college savings plans, financial intermediaries and corporations
investing for their own accounts, endowments and foundations. For information
regarding investment minimums for Class R5 and R6 shares, please see “Minimum
Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that has agreed
with Invesco Distributors, Inc. to make such shares available for use in retail
omnibus accounts that generally process no more than one net redemption and one
net purchase transaction each day.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6
Shares to their customers.
Class S
Shares
Class S shares
are limited to investors who purchase shares with the proceeds received from a
systematic contractual investment plan redemption within the 12 months
prior to purchasing Class S shares, and who purchase through an approved
financial intermediary that has an agreement with the distributor to sell
Class S shares. Class S shares are not otherwise sold to members of
the general public. An investor purchasing Class S shares will not pay an
initial sales charge. The investor will no longer be eligible to purchase
additional Class S shares at that point where the value of the
contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what
would have been the investor’s systematic contractual investment plan under the
30-year investment option. The face amount of a systematic contractual
investment plan is the combined total of all scheduled monthly investments under
that plan. For a plan with a scheduled monthly investment of $100.00, the face
amount would have been $36,000.00 under the 30-year extended investment
option.
Class Y
Shares
Class Y shares are
available to (i) investors who purchase through an account that is charged an
asset-based fee or commission by a financial intermediary, including through
brokerage platforms, where a broker is acting as the investor’s agent, that may
require the payment by the investor of a commission and/or other form of
compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and
403(b) custodial accounts held directly at Invesco), (iii) banks or bank trust
departments acting on their own behalf or as trustee or manager for trust
accounts, or (iv) any current, former or retired trustee, director, officer or
employee (or immediate family members of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of
its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class Y shares by
your financial adviser, if you received Class Y shares as a result of a merger
or reorganization of a predecessor fund into any of the Funds, you will be
permitted to make additional Class Y share purchases. In addition, you will be
permitted to make additional Class Y shares purchases if you owned Class Y
shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019, or
if you currently own Class Y shares held in a previously eligible account (as
outlined in (i) in the above paragraph) for which you no longer have a financial
intermediary.
Investor
Class Shares
Investor Class
shares are sold with no initial sales charge and have a maximum 12b-1 fee of
0.25%. Only the following persons may purchase Investor Class
shares:
◾
Investors who
established accounts prior to April 1, 2002, in Investor Class shares with
Invesco Distributors, Inc. (Invesco Distributors) who have continuously
maintained an account in Investor Class shares (this includes anyone listed in
the registration of an account, such as a joint owner, trustee or custodian, and
immediate family members of such persons) without a designated intermediary.
These investors are referred to as “Investor Class grandfathered
investors.”
◾
Customers of a
financial intermediary that has had an agreement with the Funds’ distributor or
any Funds that offered Investor Class shares prior to
April 1, 2002,
that has continuously maintained such agreement. These intermediaries are
referred to as “Investor Class grandfathered intermediaries.”
◾
Any current, former
or retired trustee, director, officer or employee (or immediate family member of
a current, former or retired trustee, director, officer or employee) of any
Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco Premier
Portfolio, please see “Shareholder Account Information – Purchasing Shares and
Shareholder Eligibility – Invesco Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except as noted
below, each Fund has adopted a service and/or distribution plan pursuant to SEC
Rule 12b-1. A 12b-1 plan allows a Fund to pay distribution and service fees to
Invesco Distributors to compensate or reimburse, as applicable, Invesco
Distributors for its efforts in connection with the sale and distribution of the
Fund’s shares, all or a substantial portion of which are paid to the dealer of
record. Because the Funds pay these fees out of their assets on an ongoing
basis, over time these fees will increase the cost of your investment and may
cause you to pay more than the maximum permitted initial sales charges described
in this prospectus.
The following Funds
and share classes do not have 12b-1 plans:
◾
Invesco Limited
Term Municipal Income Fund, Class A2 shares.
◾
Invesco Government
Money Market Fund, Investor Class shares.
◾
Invesco Premier
Portfolio, Investor Class shares.
◾
Invesco Premier
U.S. Government Money Portfolio, Investor Class shares.
◾
All Funds,
Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay distribution
and/or service fees up to the following annual rates with respect to each Fund’s
average daily net assets with respect to such class (subject to the exceptions
noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco Cash
Reserve Shares: 0.15%
◾
Investor Class
shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular Fund’s
12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The Funds are
grouped into six categories for determining initial sales charges. The “Other
Information” section of each Fund’s prospectus will tell you the sales charge
category in which the Fund is classified. Additionally, Class A shares of
Invesco Conservative Income Fund and Invesco Short Term Municipal Fund do not
have initial sales charges. As used below, the term “offering price” with
respect to all categories of Class A shares includes the initial sales
charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or V Funds or
$250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase)
the initial sales charge set forth below will be waived; though your shares will
be subject to a 1% CDSC if you don’t hold such shares for at least 18
months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$50,000 |
5.50% |
5.82% |
|
| |||
|
$50,000 but
less than |
$100,000 |
4.50 |
4.71 |
|
| |||
|
$100,000 but
less than |
$250,000 |
3.50 |
3.63 |
|
| |||
|
$250,000 but
less than |
$500,000 |
2.75 |
2.83 |
|
| |||
|
$500,000 but
less than |
$1,000,000 |
2.00 |
2.04 |
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
4.25% |
4.44% |
|
| |||
|
$100,000 but
less than |
$250,000 |
3.50 |
3.63 |
|
| |||
|
$250,000 but
less than |
$500,000 |
2.50 |
2.56 |
|
| |||
|
$500,000 but
less than |
$1,000,000 |
2.00 |
2.04 |
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
1.00% |
1.01% |
|
| |||
|
$100,000 but
less than |
$250,000 |
0.75 |
0.76 |
|
| |||
|
$250,000 but
less than |
$1,000,000 |
0.50 |
0.50 |
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
2.50% |
2.56% |
|
| |||
|
$100,000 but
less than |
$250,000 |
1.75 |
1.78 |
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
3.25% |
3.36% |
|
| |||
|
$100,000 but
less than |
$250,000 |
2.75 |
2.83 |
|
| |||
|
$250,000 but
less than |
$500,000 |
1.75 |
1.78 |
|
| |||
|
$500,000 but
less than |
$1,000,000 |
1.50 |
1.52 |
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$50,000 |
5.50% |
5.82% |
|
| |||
|
$50,000 but
less than |
$100,000 |
4.50 |
4.71 |
|
| |||
|
$100,000 but
less than |
$250,000 |
3.50 |
3.63 |
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The availability of
certain sales charge waivers and discounts will depend on how you purchase your
shares. Intermediaries may have different policies and procedures regarding the
availability of front-end sales load waivers or contingent deferred (back-end)
sales load (“CDSC”) waivers, exchanges or conversions between classes or
exchanges between Funds; account investment minimums; and minimum account
balances, which are discussed below. In all instances, it is the purchaser’s
responsibility to notify the Fund or the purchaser’s financial intermediary at
the time of purchase of any relationship or other facts qualifying the purchaser
for sales charge waivers, discounts or other special arrangements. For waivers
and discounts not available through a particular intermediary, shareholders
should consult their financial advisor to consider their options.
The
following types of investors may purchase Class A shares without
paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors who
purchase shares through a fee-based advisory account with an approved financial
intermediary. In a fee based advisory program, a financial intermediary
typically charges each investor a fee based on the value of the investor’s
account in exchange for servicing that account.
◾
Employer Sponsored
Retirement and Benefit Plans maintained on retirement platforms or by the Funds’
transfer agent or its affiliates (but not including plans utilizing the Invesco
403(b)(7) Custodial Account program, or the individual custodial accounts
thereunder):
◾
with assets of at
least $1 million; or
◾
with at least 100
employees eligible to participate in the plan; or
◾
that execute plan
level or multiple-plan level transactions through a single omnibus account per
Fund.
◾
Any investor who
purchases his or her shares with the proceeds of an in kind rollover, transfer
or distribution from a Retirement and Benefit Plan where the account being
funded by such rollover is to be maintained by the same financial intermediary,
trustee, custodian or administrator that maintained the plan from which the
rollover distribution funding such rollover originated, or an affiliate
thereof.
◾
Investors who own
Investor Class shares of a Fund, who purchase Class A shares of a different
Fund through the same account in which the Investor Class Shares were first
purchased.
◾
Funds of funds or
other pooled investment vehicles.
◾
Insurance company
separate accounts.
◾
Any current or
retired trustee, director, officer or employee of any Invesco Fund or of Invesco
Ltd. or any of its subsidiaries.
◾
Any registered
representative or employee of any financial intermediary who has an agreement
with Invesco Distributors to sell shares of the Invesco Funds (this includes any
members of his or her immediate family).
◾
Any investor
purchasing shares through a financial intermediary that has a written
arrangement with the Funds’ distributor in which the Funds’ distributor has
agreed to participate in a no transaction fee program in which the financial
intermediary will make Class A shares available without the imposition of a
sales charge.
◾
Former shareholders
of Atlas Strategic Income Fund who purchase shares of a Fund into which
shareholders of Invesco Global Strategic Income Fund may exchange if permitted
by the intermediary’s policies.
◾
Former shareholders
of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of
a Fund into which shareholders of Invesco Main Street Fund may exchange if
permitted by the intermediary’s policies.
◾
Certain
participants in Employer-Sponsored IRA Plans utilizing Invesco Trust Company
custodial accounts who were offered Class A shares without an initial sales
charge prior to December 15, 2023, and who continue to purchase Class A
shares.
In
addition, investors may acquire Class A shares without paying an
initial sales
charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging shares
of one Fund that were previously assessed a sales charge for shares of another
Fund;
◾
purchasing shares
in connection with the repayment of an Employer Sponsored Retirement and Benefit
Plan loan administered by the Funds’ transfer agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C,
Class R, Class R5, Class R6 or Class Y shares where the redemption and
purchase are effectuated on the same business day due to the distribution of a
Retirement and Benefit Plan maintained by the Funds’ transfer agent or one of
its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A shares
without paying an initial charge as a result of the investor’s current or former
relationship with the Invesco Funds. For additional information about such
eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding exchanges
and conversions, account investment minimums, minimum account balances, and
share class eligibility requirements that follow are only available to clients
of those financial intermediaries specifically named below and to Invesco funds
that offer the share class(es) to which the arrangements relate. Please contact
your financial intermediary for questions regarding your eligibility and for
more information with respect to your financial intermediary’s sales charge
waivers, discounts, investment
A-4 The
Invesco Funds
minimums, minimum
account balances, and share class eligibility requirements and other special
arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
requirements and other special arrangements are implemented and administered by
each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial
intermediary-specific waivers, discounts, investment minimums, minimum account
balances and other special arrangements and that you are placed in the proper
share class for which you are eligible through your financial intermediary. In
all instances, it is the purchaser’s responsibility to notify the Fund or the
purchaser’s financial intermediary at the time of purchase of any relationship
or other facts qualifying the purchaser for sales charge waivers or discounts or
other financial intermediary-specific arrangements as disclosed herein. Please
contact your financial intermediary for more information regarding the sales
charge waivers, discounts, investment minimums, minimum account balances, share
class eligibility requirements and other special arrangements available to you
and to ensure that you understand the steps you must take to qualify for such
arrangements. The terms and availability of these waivers and special
arrangements may be amended or terminated at any time.
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise
Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage
account are eligible for the following front-end sales charge waivers, which may
differ from those disclosed elsewhere in this Fund’s prospectus or
SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same Fund (but not any other fund within the same
fund family).
◾
Shares exchanged
from Class C shares of the same fund in the month of or following the 7-year
anniversary of the purchase date. To the extent that this prospectus elsewhere
provides for a waiver with respect to exchanges of Class C shares or conversion
of Class C shares following a shorter holding period, that waiver will
apply.
◾
Employees and
registered representatives of Ameriprise Financial or its affiliates and their
immediate family members.
◾
Shares purchased by
or through qualified accounts (including IRAs, Coverdell Education Savings
Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that
are held by a covered family member, defined as an Ameriprise financial advisor
and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father,
grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson,
granddaughter, great grandson, great granddaughter) or any spouse of a covered
family member who is a lineal descendant.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (i.e. Rights of Reinstatement).
D.A.
Davidson
&.
Co.
(“D.A.
Davidson”)
Shareholders
purchasing fund shares
including existing fund shareholders through a D.A.
Davidson
platform or
account, or through an introducing broker-dealer or independent registered
investment advisor for which D.A.
Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the
following sales charge waivers (front-end sales charge waivers and contingent
deferred, or back-end, sales charge
waivers) and
discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End Sales
Charge Waivers on Class A Shares available at D.A.
Davidson
◾
Shares purchased
within the same fund family through a systematic reinvestment of capital gains
and dividend distributions.
◾
Employees and
registered representatives of D.A.
Davidson or its
affiliates and their family members as designated by D.A.
Davidson.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales charge (known as Rights of
Reinstatement).
◾
A shareholder in
the Fund’s Class C shares will have their shares converted at net asset value to
Class A shares (or the appropriate share class) of the Fund if the shares are no
longer subject to a CDSC and the conversion is consistent with D.A.
Davidson’s policies
and procedures.
◾
CDSC Waivers on
Classes A and C shares available at D.A.
Davidson
◾
Death or disability
of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
prospectus.
◾
Return of excess
contributions from an IRA Account.
◾
Shares sold as part
of a required minimum distribution for IRA or other qualifying retirement
accounts as described in the fund’s prospectus beginning in the calendar year
the shareholder turns age 72.
◾
Shares acquired
through a right of reinstatement.
◾
Front-end sales
charge discounts available at D.A.
Davidson:
breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints as
described in this prospectus.
◾
Rights of
accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at D.A.
Davidson. Eligible
fund family assets not held at D.A.
Davidson may be
included in the calculation of rights of accumulation only if the shareholder
notifies his or her financial advisor about such assets.
◾
Letters of intent
which allow for breakpoint discounts based on anticipated purchases within a
fund family, over a 13-month time period. Eligible fund family assets not held
at D.A.
Davidson may be
included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Edward
D.
Jones
& Co., L.P.
(“Edward
Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
Effective
on or after December 15, 2023, the following information supersedes prior
information with respect to transactions and positions held in fund shares
through an Edward Jones system. Clients of Edward Jones (also referred to as
“shareholders”) purchasing fund shares on the Edward Jones commission and
fee-based platforms are eligible only for the following sales charge discounts
(also referred to as “breakpoints”) and waivers, which can differ from discounts
and waivers described elsewhere in the mutual fund prospectus or statement of
additional information (“SAI”) or through another broker-dealer. In all
instances, it is the shareholder's responsibility to inform Edward Jones at the
time of purchase of any relationship, holdings of Invesco funds, or other facts
qualifying the purchaser for discounts or waivers. Edward Jones can ask for
documentation of such circumstance. Shareholders should contact Edward Jones if
they have questions regarding their eligibility for these discounts and
waivers.
◾
Breakpoints
◾
Breakpoint pricing,
otherwise known as volume pricing, at dollar thresholds as described in the
prospectus.
◾
Rights of
Accumulation (“ROA”)
◾
The applicable
sales charge on a purchase of Class A shares is determined by taking into
account all share classes (except certain money market funds and any assets held
in group retirement plans) of
A-5 The
Invesco Funds
Invesco funds held
by the shareholder or in an account grouped by Edward Jones with other accounts
for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the
Edward Jones platform and/or held on another platform. The inclusion of eligible
fund family assets in the ROA calculation is dependent on the shareholder
notifying Edward Jones of such assets at the time of calculation. Money market
funds are included only if such shares were sold with a sales charge at the time
of purchase or acquired in exchange for shares purchased with a sales
charge.
◾
The employer
maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or
change ROA for the IRA accounts associated with the plan to a plan-level
grouping as opposed to including all share classes at a shareholder or pricing
group level.
◾
ROA is determined
by calculating the higher of cost minus redemptions or market value (current
shares x NAV).
◾
Letter of Intent
(“LOI”)
◾
Through a LOI,
shareholders can receive the sales charge and breakpoint discounts for purchases
shareholders intend to make over a 13-month period from the date Edward Jones
receives the LOI.
The
LOI is determined
by
calculating the
higher of cost or market value
of
qualifying holdings at LOI initiation in combination with the value that the
shareholder intends to buy over a 13-month period to calculate the front-end
sales charge and any breakpoint
discounts.
Each
purchase the shareholder makes during that 13-month
period
will receive the sales charge and
breakpoint
discount
that
applies to the total amount.
The
inclusion of eligible fund family assets in the LOI calculation is dependent on
the shareholder notifying Edward Jones of such assets at the time of
calculation. Purchases made before the LOI is received by Edward Jones are not
adjusted under the LOI and will not reduce the sales charge previously paid.
Sales charges will be adjusted if LOI is not met.
◾
If the employer
maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or
change ROA for the IRA accounts associated with the plan to a plan-level
grouping, LOIs will also be at the plan-level and may only be established by the
employer.
◾
Sales Charge
Waivers
Sales charges are
waived for the following shareholders and in the following
situations:
◾
Associates of
Edward Jones and its affiliates and other accounts in the same pricing group (as
determined by Edward Jones under its policies and procedures) as the associate.
This waiver will continue for the remainder of the associate's life if the
associate retires from Edward Jones in good-standing and remains in good
standing pursuant to Edward Jones' policies and procedures.
◾
Shares purchased in
an Edward Jones fee-based program.
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment.
Shares purchased from the proceeds of redeemed shares of the same fund
family
so
long
as the
following conditions are
met:
the proceeds are from the sale of shares within 60 days of the purchase, the
sale and purchase
are
made from a share
class
that charges a
front
load and one of the following:
•
The redemption and
repurchase occur in the same account.
•
The redemption
proceeds are used to process an: IRA contribution, excess contributions,
conversion, recharacterizing of contributions, or distribution, and the
repurchase is done in an account within the same Edward Jones grouping for
ROA.
◾
Shares exchanged
into Class A shares from another share class so long as the exchange is into the
same fund and was initiated at the discretion of Edward Jones. Edward Jones is
responsible for any remaining CDSC due to the fund company, if applicable. Any
future purchases are subject to the applicable sales charge as disclosed in the
prospectus.
◾
Exchanges from
Class C shares to Class A shares of the same fund,
generally, in the
84th month following the anniversary of the purchase date
or
earlier at the discretion of Edward Jones.
◾
Purchases of Class
529-A shares through a rollover from either another
education savings
plan or a security used for qualified distributions.
◾
Purchases of Class
529 shares made for recontribution of refunded amounts.
◾
Contingent Deferred
Sales Charge (“CDSC”) Waivers
If the shareholder
purchases shares that are subject to a CDSC and those shares are redeemed before
the CDSC is expired, the shareholder is responsible to pay the CDSC except in
the following conditions:
◾
The death or
disability of the shareholder.
◾
Systematic
withdrawals with up to 10%
per
year of the account value.
◾
Return of excess
contributions from an Individual Retirement Account (IRA).
◾
Shares redeemed as
part of a required minimum distribution for IRA and retirement accounts if the
redemption is taken in or after the year the shareholder reaches qualified age
based on applicable IRS regulations.
◾
Shares redeemed to
pay Edward Jones fees or costs in such cases where the transaction is initiated
by Edward Jones.
◾
Shares exchanged in
an Edward Jones fee-based program.
◾
Shares acquired
through NAV reinstatement.
◾
Shares redeemed at
the discretion of Edward Jones for Minimums Balances, as described
below.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial purchase
minimum: $250
•
Subsequent purchase
minimum: none
Minimum
Balances
•
Edward Jones has
the right to redeem at its
discretion
fund
holdings with a balance of $250 or less. The following are examples of accounts
that are not included in this policy:
○
A fee-based account
held on an Edward Jones platform
○
A 529 account held
on an Edward Jones platform
○
An account with an
active systematic investment plan or LOI
Exchanging
Share Classes
•
At any time it
deems necessary, Edward Jones has the authority
to
exchange at NAV
a
shareholder's holdings in a fund to Class A shares of the same fund.
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney
brokerage account
will be eligible for the following load waivers (front-end sales charge waivers
and contingent deferred sales charge (“CDSC”), or back-end sales charge,
waivers) and discounts, which may differ from those disclosed elsewhere in this
fund’s Prospectus or SAI.
◾
Front-end sales
charge waivers on Class A shares available at Janney
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family).
◾
Shares purchased by
employees and registered representatives of Janney or its affiliates and their
family members as designated by Janney.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within ninety (90) days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (i.e., right of
reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
◾
Shares acquired
through a right of reinstatement.
◾
Class C shares that
are no longer subject to a contingent deferred sales charge and are converted to
Class A shares of the same fund pursuant to Janney’s policies and
procedures.
A-6 The
Invesco Funds
◾
CDSC waivers on
Class A and C shares available at Janney
◾
Shares sold upon
the death or disability of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
Prospectus.
◾
Shares purchased in
connection with a return of excess contributions from an IRA
account.
◾
Shares sold as part
of a required minimum distribution for IRA and other retirement accounts due to
the shareholder reaching the qualified age based on applicable IRS regulations
as described in the fund’s Prospectus.
◾
Shares sold to pay
Janney fees but only if the transaction is initiated by Janney.
◾
Shares acquired
through a right of reinstatement.
◾
Shares exchanged
into the same share class of a different fund.
◾
Front-end sales
charge discounts available at Janney: breakpoints, rights of accumulation,
and/or letters of intent
◾
Breakpoints as
described in the fund’s Prospectus.
◾
Rights of
accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will
be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Janney. Eligible
fund family assets not held at Janney may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such
assets.
◾
Letters of intent
which allow for breakpoint discounts based on anticipated purchases within a
fund family, over a 13-month time period. Eligible fund family assets not held
at Janney Montgomery Scott may be included in the calculation of letters of
intent only if the shareholder notifies his or her financial advisor about such
assets.
J.P.
Morgan
Securities
LLC
If you purchase or
hold fund shares through an applicable
J.P.
Morgan
Securities LLC brokerage account,
you
will be eligible for the following sales charge waivers (front-end sales charge
waivers and contingent deferred
sales
charge (“CDSC”), or back-end sales charge, waivers),
share
class conversion policy and discounts, which may differ from those disclosed
elsewhere in this fund’s prospectus or Statement of Additional Information
(“SAI”).
Front-end
sales
charge waivers on Class A shares available at J.P. Morgan Securities
LLC
◾
Shares exchanged
from Class C (i.e., level-load) shares that are no longer subject to a CDSC and
are exchanged into Class A shares of the same fund pursuant to J.P. Morgan
Securities LLC’s share class exchange policy.
◾
Qualified
employer-sponsored defined contribution and defined benefit retirement plans,
nonqualified deferred compensation plans,
other
employee benefit plans and trusts used to fund those plans. For purposes of this
provision, such plans do not include SEP IRAs,
SIMPLE
IRAs,
SAR-SEPs or
501(c)(3)
accounts.
◾
Shares of funds
purchased through J.P.
Morgan
Securities LLC Self-Directed Investing accounts.
◾
Shares purchased
through rights of reinstatement.
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family).
◾
Shares purchased by
employees and registered representatives of J.P.
Morgan
Securities
LLC
or its
affiliates and
their
spouse or financial dependent as defined by J.P. Morgan Securities
LLC.
Class
C to Class A share conversion
◾
A shareholder in
the fund’s Class C shares will have their shares converted by J.P.
Morgan
Securities LLC to Class A shares (or the appropriate share class) of the same
fund if the shares are no longer subject to a CDSC and the conversion is
consistent with J.P.
Morgan
Securities LLC’s policies and procedures.
CDSC
waivers
on Class A and C Shares available at J.P. Morgan Securities LLC
◾
Shares sold upon
the death or disability of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
prospectus.
◾
Shares purchased in
connection with a return of excess contributions from an IRA
account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts pursuant to
the Internal Revenue Code.
◾
Shares acquired
through a right of reinstatement.
Front-end
load discounts
available at J.P. Morgan Securities LLC: breakpoints, rights of accumulation
& letters of intent
◾
Breakpoints as
described in the prospectus.
◾
Rights of
Accumulation (“ROA”) which entitle shareholders to breakpoint discounts as
described in the fund’s prospectus will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s
household at J.P.
Morgan
Securities LLC.
Eligible fund
family assets not held at J.P.
Morgan
Securities LLC (including 529 program holdings, where applicable) may be
included in the ROA calculation only if the shareholder notifies their financial
advisor about such assets.
Letters
of Intent (“LOI”) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through J.P. Morgan Securities LLC, over a
13-month period of time (if applicable).
Merrill
Lynch
(“Merrill”)
Purchases or sales
of front-end (i.e. Class A) or level-load (i.e., Class C) mutual fund shares
through a Merrill platform or account will be eligible only for the following
sales load waivers (front-end,
contingent
deferred,
or
back-end waivers) and discounts, which differ from those disclosed elsewhere in
this prospectus or SAI. Purchasers will have to buy mutual fund shares directly
from the mutual fund company or through another intermediary to be eligible for
waivers or discounts not listed below.
It
is the client’s responsibility to notify Merrill at the time of purchase or
sale
of any relationship or other facts that qualify the transaction for a waiver or
discount. A Merrill representative may ask for reasonable documentation of such
facts and Merrill may condition the granting of a waiver or discount on the
timely receipt of such documentation.
Additional
information on waivers and discounts is available in the Merrill Sales Load
Waiver and Discounts Supplement (the “Merrill SLWD Supplement”) and in the
Mutual Fund Investing at Merrill pamphlet at ml.com/funds. Clients are
encouraged to review these documents and speak with their financial advisor to
determine whether a transaction is eligible for a waiver or
discount.
◾
Front-end Load
Waivers Available at Merrill
◾
Shares of mutual
funds available for purchase by employer-sponsored retirement, deferred
compensation, and employee benefit plans (including health savings accounts) and
trusts used to fund those plans provided the shares are not held in a
commission-based brokerage account and shares are held for the benefit of the
plan. For purposes of this provision, employer-sponsored retirement plans do not
include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
◾
Shares purchased
through a Merrill investment advisory program.
◾
Brokerage class
shares exchanged from advisory class shares due to the holdings moving from a
Merrill investment advisory program to a Merrill brokerage account.
◾
Shares purchased
through the Merrill Edge Self-Directed platform.
◾
Shares purchased
through the systematic reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same mutual fund in the same
account.
◾
Shares exchanged
from level-load shares to front-end load shares of the same mutual fund in
accordance with the description in the Merrill SLWD Supplement.
◾
Shares purchased by
eligible employees of Merrill or its affiliates and their family members who
purchase shares in accounts within the employee’s Merrill Household (as defined
in the Merrill SLWD Supplement).
◾
Shares purchased by
eligible persons associated with the fund as defined in this prospectus (e.g.
the fund’s officers or trustees).
A-7 The
Invesco Funds
◾
Shares purchased
from the proceeds of a mutual fund redemption
in
front-end load shares provided (1) the repurchase is in a mutual fund within the
same fund family;
(2)
the repurchase occurs within 90 calendar days from the redemption trade date,
and (3) the redemption and purchase occur in the same account
(known
as
Rights of Reinstatement).
Automated
transactions
(i.e.
systematic
purchases and withdrawals) and purchases made after
shares
are automatically sold to pay Merrill’s account maintenance fees are not
eligible for Rights of Reinstatement.
◾
Contingent Deferred
Sales Charge (“CDSC”) Waivers on Front-end, Back-end, and Level Load Shares
Available at Merrill
◾
Shares sold due to
the client’s death or disability (as defined by Internal Revenue Code Section
22(e)(3)).
◾
Shares sold
pursuant to a systematic withdrawal program subject to Merrill’s maximum
systematic withdrawal limits as described in the Merrill SLWD
Supplement.
◾
Shares sold due to
return of excess contributions from an IRA account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
investor reaching the qualified age based on applicable IRS
regulation.
◾
Front-end or
level-load shares held in commission-based, non-taxable retirement brokerage
accounts (e.g. traditional, Roth, rollover, SEP IRAs, Simple IRAs, SAR-SEPs or
Keogh plans) that are transferred to fee-based accounts or platforms and
exchanged for a lower cost share class of the same mutual fund.
◾
Front-end Load
Discounts Available at Merrill: Breakpoints, Rights of Accumulation &
Letters of Intent
◾
Breakpoint
discounts, as described in this prospectus, where the sales load is at or below
the maximum sales load that Merrill permits to be assessed to a front-end load
purchase, as described in the Merrill SLWD Supplement.
◾
Rights of
Accumulation (ROA), as described in the Merrill SLWD Supplement, which entitle
clients to breakpoint discounts based on the aggregated holdings of mutual fund
family assets held in accounts in their Merrill Household.
◾
Letters of Intent
(LOI), which allow for breakpoint discounts on eligible new purchases based on
anticipated future eligible purchases within a fund family at Merrill, in
accounts within your Merrill Household, as further described in the Merrill SLWD
Supplement.
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional
brokerage account will be eligible only for the following front-end sales charge
waivers with respect to Class A shares,
which
may differ from and may be more limited than those disclosed elsewhere in this
Fund’s Prospectus or SAI.
◾
Front-end Sales
Charge Waivers on Class A Shares available at Morgan Stanley Wealth
Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs,
SAR-SEPs or Keogh
plans;
◾
Morgan Stanley
employee and employee-related accounts according to Morgan Stanley’s account
linking rules;
◾
Shares purchased
through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund;
◾
Shares purchased
through a Morgan Stanley self-directed brokerage account;
◾
Class C
(i.e.,
level-load)
shares
that are no longer subject to a contingent deferred sales charge and are
converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth
Management’s share class conversion
program;
and
◾
Shares purchased
from the proceeds of redemptions
within
the
same fund family,
provided
(i)
the
repurchase occurs within 90 days following
the redemption,
(ii)
the
redemption and purchase occur in the same account, and (iii) redeemed shares
were subject to a front-end or deferred sales charge.
Oppenheimer
& Co.
Inc.
(“OPCO”)
Shareholders
purchasing Fund shares through an
OPCO
platform or account
are eligible only for the following load waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which
may differ from those disclosed elsewhere in this Fund's prospectus or
SAI.
◾
Front-end Sales
Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement,
deferred
compensation and employee benefit plans (including health savings accounts) and
trusts used
to
fund those plans,
provided that the
shares are not held in a commission-based brokerage account and shares are held
for the benefit of the
plan
◾
Shares purchased by
or through a 529 Plan
◾
Shares purchased
through an OPCO affiliated investment advisory program
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family)
◾
Shares purchased
from the proceeds of redemptions within the same fund family,
provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account,
and
(3)
redeemed shares
were subject to a front-end or deferred sales load
(known
as Rights of Reinstatement).
◾
A shareholder in
the Fund's Class C shares will have their shares converted at net asset value to
Class A shares (or the appropriate share class) of the Fund if
the
shares are no longer subject to a CDSC and the conversion is in line with the
policies and procedures of OPCO
◾
Employees and
registered representatives of OPCO or its affiliates and their family
members
◾
Directors or
Trustees of the Fund, and employees of the Fund's investment adviser or any of
its affiliates, as described in this prospectus
◾
CDSC Waivers on A
and C Shares available at OPCO
◾
Death or disability
of the shareholder
◾
Shares sold as part
of a
systematic
withdrawal plan as described in the Fund's prospectus
◾
Return of excess
contributions from an IRA
Account
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
shareholder reaching the qualified age based on applicable IRS regulations as
described in the prospectus
◾
Shares sold to pay
OPCO fees but only if the transaction is initiated by OPCO Shares acquired
through a right of reinstatement
◾
Front-end load
Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters
of Intent
◾
Breakpoints as
described in this prospectus.
◾
Rights of
Accumulation (ROA) which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser's household at OPCO. Eligible fund family
assets not held at OPCO may be included in the ROA calculation only if the
shareholder notifies his or her financial advisor about such
assets.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and
positions held in fund shares purchased through PFSI and held on the mutual fund
platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of
PFSI (also referred to as “shareholders”) purchasing fund shares on the PSS
platform are eligible only for the following share classes, sales charge
discounts (also referred to as “breakpoints”) and waivers, which can differ from
share classes, discounts and waivers described elsewhere in this prospectus or
the related statement of additional information (“SAI”) or through another
broker-dealer. In all
A-8 The
Invesco Funds
instances, it is
the shareholder’s responsibility to inform PFSI at the time of a purchase of all
holdings of Invesco Funds on the PSS platform, or other facts qualifying the
purchaser for discounts or waivers. PFSI may request reasonable documentation of
such facts, and condition the granting of any discount or waiver on the timely
receipt of such documents. Shareholders should contact PSS if they have
questions regarding their eligibility for these discounts and
waivers.
Share
Classes
◾
Class A shares: in
non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE
IRAs, Keogh Plans, and all other account types unless expressly provided for
below.
◾
Class C shares:
only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint pricing
at dollar thresholds as described in the prospectus of the fund you are
purchasing.
Rights
of Accumulation (“ROA”)
◾
The applicable
sales charge on a purchase of Class A shares is determined by taking into
account all share classes (except any assets held in group retirement plans) of
Invesco Funds held by the shareholder on the PSS Platform. The inclusion of
eligible fund family assets in the ROA calculation is dependent on the
shareholder notifying PFSI of such assets at the time of calculation. Shares of
money market funds are included only if such shares were acquired in exchange
for shares of another Invesco Fund purchased with a sales charge. No shares of
Invesco Funds held by the shareholder away from the PSS platform will be granted
ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any SEP IRA plan,
any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform
will be defaulted to plan-level grouping for purposes of ROA, which allows each
participating employee ROA with all other eligible shares held in plan accounts
on the PSS platform. At any time, a participating employee may elect to exercise
a one-time option to change grouping for purposes of ROA to shareholder- level
grouping, which allows the plan account of the electing employee ROA with her
other eligible holdings on the PSS platform, but not with all other eligible
participant holdings in the plan. Eligible shares held in plan accounts electing
shareholder-level grouping will not be available for purposes of ROA to plan
accounts electing plan-level grouping.
◾
ROA is determined
by calculating the higher of cost minus redemptions or current market value
(current shares x NAV).
Letter
of Intent (“LOI”)
◾
By executing a LOI,
shareholders can receive the sales charge and breakpoint discounts for purchases
shareholders intend to make over a 13-month period through PFSI, from the date
PSS receives the LOI. The purchase price of the LOI is determined by calculating
the higher of cost or market value of qualifying holdings at LOI initiation in
combination with the dollar amount the shareholder intends to invest over a
13-month period to arrive at total investment for purposes of determining any
breakpoint discount and the applicable front-end sales charge. Each purchase the
shareholder makes during that 13-month period will receive the sales charge and
breakpoint discount that applies to the projected total investment.
◾
Only holdings of
Invesco Funds on the PSS platform are eligible for inclusion in the LOI
calculation and the shareholder must notify PFSI of all eligible assets at the
time of calculation.
◾
Purchases made
before the LOI is received by PSS are not adjusted under the LOI, and the LOI
will not reduce any sales charge previously paid. Sales charges will be
automatically adjusted if the total purchases required by the LOI are not
met.
◾
If an employer
maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform
has elected to establish or change ROA for the accounts associated with the plan
to a plan-level grouping, LOIs will also be at the plan-level and may only be
established by the employer. LOIs are not available to PDP IRA plans on the PSS
platform with plan-level grouping for purposes of ROA, but are available to any
participating employee that elects shareholder-level grouping for purposes of
ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares purchased
through reinvestment of capital gains distributions and dividend
reinvestment.
◾
Shares purchased
with the proceeds of redeemed shares of the same fund family so long as the
following conditions are met: 1) the proceeds are from the sale of shares within
90 days of the purchase, 2) the sale and purchase are made in the same share
class and the same account or the purchase is made in an individual retirement
account with proceeds from liquidations in a non-retirement account, and 3) the
redeemed shares were subject to a front-end or deferred sales load, Automated
transactions (i.e. systematic purchases and withdrawals), full or partial
transfers or rollovers of retirement accounts, and purchases made after shares
are automatically sold to pay account maintenance fees are not eligible for this
sales charge waiver.
◾
Shares exchanged
into Class A shares from another share class so long as the exchange is into the
same fund and was initiated at the discretion of PFSI. PFSI is responsible for
any remaining CDSC due to the fund company, if applicable. Any future purchases
are subject to the applicable sales charge as disclosed in the
prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
◾
Class R shares are
available through PFSI only in 401(k) plans covering a business owner with no
employees, commonly referred to as a one-participant 401(k) plan or solo
401(k).
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James
affiliates and each entity’s affiliates (Raymond James) platform or account, or
through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or
custody services, will be eligible only for the following load waivers
(front-end sales charge waivers and contingent deferred, or back-end, sales
charge waivers) and discounts, which may differ from those disclosed elsewhere
in this Fund’s prospectus or SAI.
◾
Front-end sales
load waivers on Class A shares available at Raymond James
◾
Shares purchased in
an investment advisory program.
◾
Shares purchased
within the same fund family through a systematic reinvestment of capital gains
distributions and dividend distributions.
◾
Employees and
registered representatives of Raymond James or its affiliates and their family
members as designated by Raymond James.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of
Reinstatement).
◾
A shareholder in
the Fund’s Class C shares will have their shares converted at net asset value to
Class A shares (or the appropriate share class) of the Fund if the shares are no
longer subject to a CDSC and the conversion is in line with the policies and
procedures of Raymond James.
◾
CDSC Waivers on
Classes A and C shares available at Raymond James
◾
Death or disability
of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
prospectus.
◾
Return of excess
contributions from an IRA Account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
shareholder reaching the qualified age based on applicable IRS regulations as
described in the fund’s prospectus.
◾
Shares sold to pay
Raymond James fees but only if the transaction is initiated by Raymond
James.
◾
Shares acquired
through a right of reinstatement.
◾
Front-end load
discounts available at Raymond James: breakpoints, rights of accumulation,
and/or letters of intent
A-9 The
Invesco Funds
◾
Breakpoints as
described in this prospectus.
◾
Rights of
accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Raymond James. Eligible
fund family assets not held at Raymond James may be included in the calculation
of rights of accumulation only if the shareholder notifies his or her financial
advisor about such assets.
◾
Letters of intent
which allow for breakpoint discounts based on anticipated purchases within a
fund family, over a 13-month time period. Eligible fund family assets not held
at Raymond James may be included in the calculation of letters of intent only if
the shareholder notifies his or her financial advisor about such
assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird platform or
account will only be eligible for the following sales charge waivers (front-end
sales charge waivers and CDSC waivers) and discounts, which may differ from
those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End Sales
Charge Waivers on Class A-shares Available at Baird
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund.
◾
Shares purchased by
employees and registered representatives of Baird or its affiliate and their
family members as designated by Baird.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales charge (known as rights of
reinstatement).
◾
A shareholder in
the Fund’s Class C Shares will have their shares converted at net asset value to
Class A shares of the fund if the shares are no longer subject to CDSC and the
conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money purchase pension plans and defined benefit plans. For
purposes of this provision, employer-sponsored retirement plans do not include
SEP IRAs, Simple IRAs or SAR-SEPs.
◾
CDSC Waivers on
Classes A and C shares Available at Baird
◾
Shares sold due to
death or disability of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the Fund’s
Prospectus.
◾
Return of excess
contributions from an IRA Account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
shareholder reaching age 72 as described in the Fund’s prospectus.
◾
Shares sold to pay
Baird fees but only if the transaction is initiated by Baird.
◾
Shares acquired
through a right of reinstatement.
◾
Front-End Sales
Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or
letters of intent
◾
Breakpoints as
described in this prospectus.
◾
Rights of
accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Baird. Eligible fund family
assets not held at Baird may be included in the rights of accumulation
calculation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters of Intent
(LOI) allow for breakpoint discounts based on anticipated purchases of within a
fund family through Baird, over a 13-month period of time.
Stifel,
Nicolaus & Company, Incorporated and its broker dealer
affiliates (“Stifel”)
Effective
December 15, 2023, shareholders purchasing or holding fund shares, including
existing fund shareholders, through a Stifel, Nicolaus &
Company,
Incorporated or affiliated platform that provides trade execution, clearance,
and/or custody services, will be eligible for the following sales charge load
waivers (including front-end sales charge waivers and contingent deferred, or
back-end, (“CDSC”) sales charge waivers) and discounts, which may differ from
those disclosed elsewhere in the Fund’s Prospectus or SAI.
CLASS
A SHARES
As
described elsewhere in this prospectus, Stifel may receive compensation out of
the front-end sales charge if you purchase Class A shares through
Stifel.
Rights
of Accumulation
◾
Rights of
accumulation (“ROA”) that entitle shareholders to breakpoint discounts on
front-end sales charges will be calculated by Stifel based on the aggregated
holding of all assets in all classes of shares of Invesco funds held by accounts
within the purchaser’s household at Stifel. Eligible fund family assets not held
at Stifel may be included in the calculation of ROA only if the shareholder
notifies his or her financial advisor about such assets.
◾
The employer
maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or
change ROA for the IRA accounts associated with the plan to a plan-level
grouping as opposed to including all share classes at a shareholder or pricing
group level.
Front-end
sales charge waivers on Class A shares available at Stifel
Sales
charges may be waived for the following shareholders and in the following
situations:
◾
Class
C
shares that have been held for more than seven (7) years may be converted to
Class
A or other Front-end share class(es)
shares
of the same fund pursuant to Stifel's policies and procedures. To the extent
that this prospectus elsewhere provides for a waiver with respect to the
exchange or conversion of such shares following a shorter holding period, those
provisions shall continue to apply.
◾
Shares purchased by
employees and registered representatives of Stifel or its affiliates and their
family members as designated by Stifel
◾
Shares purchased in
an Stifel fee-based advisory program, often referred to as a “wrap”
program
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same or other fund within the fund
family.
◾
Shares purchased
from the proceeds of redeemed shares of the same fund family so long as the
proceeds are from the sale of shares from an account with the same
owner/beneficiary within 90 days of the purchase. For the absence of doubt,
shares redeemed through a Systematic Withdrawal Plan are not eligible for rights
of reinstatement.
◾
Shares from
rollovers into Stifel from retirement plans to IRAs
◾
Shares exchanged
into Class A shares from another share class so long as the exchange is into the
same fund and was initiated at the direction of Stifel. Stifel is responsible
for any remaining CDSC due to the fund company, if applicable. Any future
purchases are subject to the applicable sales charge as disclosed in the
prospectus.
◾
Purchases of Class
529-A shares through a rollover from another 529 plan
◾
Purchases of Class
529-A shares made for reinvestment of refunded amounts
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
All other sales
charge waivers and reductions described elsewhere in the fund’s prospectus or
SAI still apply.
Contingent
Deferred Sales Charges Waivers on Class A and C Shares
◾
Death or disability
of the shareholder or, in the case of 529 plans, the account
beneficiary
◾
Shares sold as part
of a systematic withdrawal plan not to exceed 12% annually
A-10 The
Invesco Funds
◾
Return of excess
contributions from an IRA Account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
shareholder reaching the qualified age based on applicable IRS
regulations.
◾
Shares acquired
through a right of reinstatement.
◾
Shares sold to pay
Stifel fees or costs in such cases where the transaction is initiated by
Stifel.
◾
Shares exchanged or
sold in a Stifel fee-based program
◾
All other sales
charge waivers and reductions described elsewhere in the fund’s prospectus or
SAI still apply.
Share
Class Conversions in Advisory Accounts
◾
Stifel continually
looks to provide our clients with the lowest cost share class available based on
account type. Stifel reserves the right to convert shares to the lowest cost
share class available at Stifel upon transfer of shares into an advisory
program.
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y shares to its
retail brokerage clients whose shares are held in omnibus accounts at UBS, or
its designee. For these clients, UBS may charge commissions or transaction fees
with respect to brokerage transactions in Class Y shares. The minimum investment
for Class Y shares is waived for transactions through such brokerage platforms
at UBS. Please contact your UBS representative for more information about these
fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
In all instances,
it is the purchaser’s responsibility to notify Invesco Distributors or its
designee of any relationship or other facts qualifying the purchaser as eligible
for reduced sales charges and/or sales charge exceptions and to provide all
necessary documentation of such facts in order to qualify for reduced sales
charges or sales charge exceptions. For additional information on linking
accounts to qualify for ROA or LOI, please see the Funds’ SAI.
The
following types of accounts qualify for reduced sales charges or sales charge
exceptions under ROAs and LOIs:
1.
an individual
account owner;
2.
immediate family of
the individual account owner (which includes the individual’s spouse or domestic
partner; the individual’s children, step-children or grandchildren; the spouse
or domestic partner of the individual’s children, step-children or
grandchildren; the individual’s parents and step-parents; the parents or
step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a Retirement and
Benefit Plan so long as the plan is established exclusively for the benefit of
an individual account owner;
4.
a Coverdell
Education Savings Account (Coverdell ESA), maintained pursuant to
Section 530 of the Code (in either case, the account must be established by
an individual account owner or have an individual account owner named as the
beneficiary thereof); and
5.
certain
participants utilizing an Invesco 403(b)(7) Custodial Account who were granted
ROA at the plan level (as described below) prior to December 15, 2023, and who
continue to purchase Class A shares.
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including plans
utilizing the Invesco 403(b)(7) Custodial Account program, or the individual
custodial accounts thereunder) or Employer Sponsored IRA may be eligible to
purchase shares pursuant to a ROA at the plan level, and receive a reduced
applicable initial sales charge for a new purchase based on the total value of
the current purchase and the value of other shares owned by the plan’s
participants if:
a)
the employer or
plan sponsor submits all contributions for all participating employees in a
single contribution transmittal (the
Invesco Funds will
not accept separate contributions submitted with respect to individual
participants);
b)
each transmittal is
accompanied by checks or wire transfers; and
c)
the Invesco Funds
are expected to carry separate accounts in the names of each of the plan
participants
and
each new participant account is established by submitting an appropriate Account
Application on behalf of each new participant with the contribution
transmittal.
The
Fund's transfer agent may link new participant accounts in Employer Sponsored
Retirement and Benefit Plans (but not including plans utilizing the Invesco
403(b)(7) Custodial Account program, or the individual custodial accounts
thereunder) and Employer Sponsored IRAs at the plan level for ROA for the
purpose of qualifying those participants for lower initial sales charge
rates.
Participant
accounts in a retirement plan that are eligible to purchase shares pursuant to
a ROA at the plan level may not also be considered eligible to do so for the
benefit of an individual account owner.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco Government
Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or
Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco
U.S. Government Money Portfolio, as applicable, or Investor Class shares of any
Fund will not be taken into account in determining whether a purchase qualifies
for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers that
qualify for ROA may combine new purchases of Class A shares of a Fund with
shares of the Fund or other open-end Invesco Funds currently owned
(Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the
lower initial sales charge rates that apply to larger purchases. The applicable
initial sales charge for the new purchase will be based on the total of your
current purchase and the value of other shares owned based on their current
public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification
number for the purpose of qualifying you for lower initial sales charge
rates.
Letters
of Intent
Under a LOI, you
commit to purchase a specified dollar amount of Class A shares of one or
more Funds during a 13-month period. The amount you agree to purchase determines
the initial sales charge you pay. If the full amount committed to in the LOI is
not invested by the end of the 13-month period, your account will generally be
assessed the higher initial sales charge that would normally be applicable to
the total amount actually invested. Shares equal in value to 5% of the intended
purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If you redeem any
class of shares of a Fund, you may reinvest all or a portion of the proceeds
from the redemption (and may include that amount necessary to acquire a
fractional Share to round off his or her purchase to the next full Share) in the
same share class of any Fund within 180 days of the redemption without paying an
initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a regularly
scheduled automatic investment plan, such as a purchase by a regularly scheduled
payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in
which
a purchase block is in place on a shareholder’s account. Please see “Purchase
Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform your
financial adviser or the Funds’ transfer agent that you wish to do so at the
time of your reinvestment.
A-11 The
Invesco Funds
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any shares of a
Large Purchase of Class A shares redeemed prior to 18 months after the date of
purchase will be subject to a CDSC of 1% with the exception of Class A shares of
Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do
not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in
connection with a
Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit
Plan or SIMPLE IRA Plan, the Class A shares will be subject to a 1% CDSC if all
of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares
are redeemed within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco Government
Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government
Money Portfolio through an exchange involving Class A shares that were subject
to a CDSC, the shares acquired as a result of the exchange will continue to be
subject to that same CDSC.
CDSCs
on Class C Shares
Class C shares are
subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C
shares where the selling broker-dealer was not paid a commission at the time of
purchase. If you redeem your shares during the first year since your purchase
has been made you will be assessed a CDSC as disclosed in the “Fees and Expenses
- Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer
Sponsored IRAs
Class C shares are
subject to a 1.00% CDSC at the time of redemption if all of the Employer
Sponsored Retirement and Benefit Plan’s or Employer Sponsored IRA’s shares are
redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective November
1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC.
If you acquire Class C shares of any other Fund as a result of an exchange
involving Class C shares of Invesco Short Term Bond Fund that were not subject
to a CDSC prior to November 1, 2021, then the shares acquired as a result of the
exchange will not be subject to a CDSC.
Computing
a CDSC
The CDSC on
redemptions of shares is computed based on the lower of their original purchase
price or current net asset value, net of reinvested dividends and capital gains
distributions. In determining whether to charge a CDSC, shares are accounted for
on a first-in, first-out basis, which means that you will redeem shares on which
there is no CDSC first, and then shares in the order of their
purchase.
CDSC
Exceptions
Investors who own
shares that are otherwise subject to a CDSC will not pay a CDSC in the following
circumstances:
◾
If you participate
in the Systematic Redemption Plan and withdraw up to 12% of the value of your
shares that are subject to a CDSC in any twelve-month period.
◾
If you redeem
shares to pay account fees.
◾
If you are the
executor, administrator or beneficiary of an estate or are otherwise entitled to
assets remaining in an account following the death or post-purchase disability
of a shareholder or beneficial owner and you choose to redeem those
shares.
There
are other circumstances under which you may be able to redeem shares without
paying CDSCs. For additional information about such
circumstances,
please see the Appendix entitled “Purchase, Redemption and Pricing of Shares” in
each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are not subject to
CDSCs.
The following share
classes are sold without a CDSC:
◾
Class A2 shares of
Invesco Short Duration Inflation Protected Fund and Invesco Limited Term
Municipal Income Fund
◾
Class A shares of
Invesco Government Money Market Fund
◾
Invesco Cash
Reserve Shares of Invesco Government Money Market Fund and Invesco U.S.
Government Money Portfolio
◾
Investor Class
shares of any Fund
◾
Class P shares of
Invesco Summit Fund
◾
Class R5 and R6
shares of any Fund
◾
Class R shares of
any Fund
◾
Class S shares of
Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor
Fund, Invesco Select Risk: Growth Investor Fund, Invesco Select Risk: Moderate
Investor Fund and Invesco Summit Fund
◾
Class Y shares of
any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For Invesco Premier
U.S. Government Money Portfolio, you may purchase shares using one of the
options below. Unless the Fund closes early on a business day, the Fund’s
transfer agent will generally accept any purchase order placed until 5:00 p.m.
Eastern Time on a business day and may accept a purchase order placed until 5:30
p.m. Eastern Time on a business day. If you wish to place an order between 5:00
p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by
telephone; however, the Fund’s transfer agent reserves the right to reject or
limit the amount of orders placed during this time. If the Fund closes early on
a business day, the Fund’s transfer agent must receive your purchase order prior
to such closing time. Purchase orders will not be processed unless the account
application and purchase payment are received in good order. In accordance with
the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be
processed. Additionally, federal law requires that the Fund verifies and records
your identifying information.
Invesco
Premier Portfolio
Only accounts
beneficially owned by natural persons will be permitted to retain their shares.
The Fund has implemented policies and procedures reasonably designed to limit
all beneficial owners of the Fund to natural persons, and investments in the
Fund are limited to accounts beneficially owned by natural persons. Natural
persons may invest in the Fund through certain tax-advantaged savings accounts,
trusts and other retirement and investment accounts, which may include, among
others: participant-directed defined contribution plans; individual retirement
accounts; simplified employee pension arrangements; simple retirement accounts;
custodial accounts; deferred compensation plans for government or tax-exempt
organization employees; Archer medical savings accounts; college savings plans;
health savings account plans; ordinary trusts and estates of natural persons; or
certain other retirement and investment accounts with ultimate investment
authority held by the natural person beneficial owner, notwithstanding having an
institutional decision maker making day-to-day decisions (e.g., a plan sponsor
in certain retirement arrangements or an investment adviser managing
discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have implemented
policies and procedures reasonably designed to limit all investors on behalf of
whom they submit orders to accounts beneficially owned by natural persons.
Financial intermediaries may be required to provide a written statement or other
representation that they have in place, and operate in compliance with, such
policies and procedures prior to submitting purchase orders. Such policies and
procedures may include provisions for the financial intermediary to promptly
report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and
promptly take steps to redeem any such shareholder’s shares of the Fund upon
request by the
A-12 The
Invesco Funds
Fund or the
transfer agent, in such manner as it may reasonably request. The Fund may
involuntarily redeem any such shareholder who does not voluntarily redeem their
shares.
Natural
persons may purchase shares using one of the options below. For all classes of
the Fund, other than Investor Class shares, unless the Fund closes early on a
business day, the Fund’s transfer agent will generally accept any purchase order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase
order placed until 5:30 p.m. Eastern Time on a business day. If you wish to
place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day,
you must place such order by telephone; or send your request by a pre-arranged
Liquidity Link data transmission however, the Fund’s transfer agent reserves the
right to reject or limit the amount of orders placed during this time. For
Investor Class shares of the Fund, unless the Fund closes early on a business
day, the Fund’s transfer agent will generally accept any purchase order placed
until 4:00 p.m. Eastern Time on a business day and may accept a purchase order
placed until 4:30 p.m. Eastern Time on a business day. If you wish to place an
order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must
place such order by telephone; however, the Fund’s transfer agent reserves the
right to reject or limit the amount of orders placed during this time. If the
Fund closes early on a business day, the Fund’s transfer agent must receive your
purchase order prior to such closing time. Purchase orders will not be processed
unless the account application and purchase payment are received in good order.
In accordance with the USA PATRIOT Act, if you fail to provide all the required
information requested in the current account application, your purchase order
will not be processed. Additionally, federal law requires that the Fund verify
and record your identifying information.
Minimum Investments
There are no
minimum investments for Class P or S shares for fund accounts. The minimum
investments for Class A, C, R, Y, Investor Class and Invesco Cash Reserve shares
for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser |
None |
None |
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None |
None |
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25 |
$25 |
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50 |
50 |
|
| ||
|
IRAs
and Coverdell ESAs |
250 |
25 |
|
| ||
|
All
other accounts |
1,000 |
50 |
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of
clients for lesser amounts.
The minimum
investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement and
Benefit Plan investing through a retirement platform that administers at least
$2.5 billion in retirement plan assets. All other Employer Sponsored Retirement
and Benefit Plans must meet a minimum initial investment of at least $1 million
in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment
company, as defined under the 1940 Act, as amended, that is part of a family of
investment companies which own in the aggregate at least $100 million in
securities, or (ii) an account established with a 529 college savings plan
managed by Invesco, in which case there is no minimum initial
investment.
There
are no minimum investment amounts for Class R6 shares held through retail
omnibus accounts where the intermediary:
◾
generally charges
an asset-based fee or commission in addition to those described in this
prospectus; and
◾
maintains Class R6
shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than those set
forth above. The Fund is not responsible for any investment minimums imposed by
financial intermediaries or for notifying shareholders of any changes to them.
See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain
intermediary-specific investment minimums. Please consult with your financial
intermediary if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary* |
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below. |
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested. |
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or
by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing directly
or through a financial intermediary, are not eligible for Class R5 shares. IRAs
and Employer Sponsored IRAs are also not eligible for
A-13 The
Invesco Funds
Class R5 shares. If
you hold your shares through a financial intermediary, the terms by which you
purchase, redeem and exchange shares may differ than the terms in this
prospectus depending upon the policies and procedures of your financial
intermediary.
Purchase
orders will not be processed unless the account application and purchase
payment are received in good order. In accordance with the USA PATRIOT Act, if
you fail to provide all the required information requested in the current
account application, your purchase order will not be processed. Additionally,
federal law requires that the Funds verify and record your identifying
information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6
shares)
You can arrange for
periodic investments in any of the Funds by authorizing the Funds’ transfer
agent to withdraw the amount of your investment from your bank account on a day
or dates you specify and in an amount of at least $25 per Fund for IRAs and
Coverdell ESAs, and at least $50 per Fund for all other types of accounts (a
Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any time
by giving the Funds’ transfer agent notice ten days prior to your next scheduled
withdrawal. Certain financial advisers and other financial intermediaries may
also offer systematic purchase plans.
Dollar
Cost Averaging (Available for all classes except Class R5 and R6
shares)
Dollar Cost
Averaging allows you to make automatic periodic exchanges, if permitted, from
one Fund to another Fund or multiple other Funds. The account from which
exchanges are to be made must have a minimum balance of $5,000 before you can
use this option. Exchanges will occur on (or about) the day of the month you
specify, in the amount you specify. Dollar Cost Averaging cannot be set up for
the 29th through the 31st of the month. The minimum amount you can exchange to
another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your dividends and
distributions may be paid in cash or reinvested in the same Fund or another Fund
without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically be
reinvested in the same Fund. You must comply with the following requirements to
be eligible to invest your dividends and distributions in shares of another
Fund:
◾
Your account
balance in the Fund paying the dividend or distribution must be at least $5,000;
and
◾
Your account
balance in the Fund receiving the dividend or distribution must be at least
$500.
If
you elect to receive your distributions by check, and the distribution
amount
is $25 or less, then the amount will be automatically reinvested in the same
Fund and no check will be issued. If you have elected to receive distributions
by check, and the postal service is unable to deliver checks to your address of
record, then your distribution election may be converted to having all
subsequent distributions reinvested in the same Fund and no checks will be
issued. With respect to certain account types, if your check remains uncashed
for six months, the Fund generally reserves the right to reinvest your
distribution check in your account at the then applicable NAV and to reinvest
all subsequent distributions in shares of the Fund. Such checks will be
reinvested into the same share class of the Fund. You should contact the Funds’
transfer agent to change your distribution option, and your request to do so
must be received by the Funds’ transfer agent before the record date for a
distribution in order to be effective for that distribution. No interest will
accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The Funds’ transfer
agent or authorized intermediary, if applicable, must receive your call before
the Funds’ net asset value determination (as defined by the applicable Fund) in
order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling redemption
transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary* |
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which
includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege. |
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be
requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or
by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The Funds’ transfer
agent typically expects to pay redemption proceeds to redeeming shareholders
within one business day after a redemption request is received in good order,
regardless of the method a Fund uses to make such payment. However, a Fund may
take up to seven days to process a redemption request. “Good order” means that
all necessary information and documentation related to the redemption request
have been provided to the Funds’ transfer agent or authorized intermediary, if
applicable. If your request is not in good order, the Funds’ transfer agent may
require additional documentation in order to redeem your shares. If you redeem
shares recently purchased by check or ACH, you may be required to wait up to ten
calendar days before your redemption proceeds are sent. This delay is necessary
to ensure that the purchase has cleared. You can avoid the check hold period if
you pay for your shares with a certified check, a cashier’s check or a federal
wire. Payment may be postponed under
A-14 The
Invesco Funds
unusual
circumstances, as allowed by the SEC, such as when the NYSE restricts or
suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption proceeds
from an account if there is a reasonable belief that financial exploitation of a
Specified Adult (as defined below) has occurred, is occurring, has been
attempted, or will be attempted. Notice of such a delay will be provided in
accordance with regulatory requirements. This temporary hold will be for an
initial period of no more than 15 business days while an internal review is
performed. Should the internal review support the belief that financial
exploitation has occurred, is occurring, has been attempted or will be
attempted, the temporary hold may be extended for up to 10 additional business
days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent
jurisdiction. For purposes of this paragraph, the term “Specified Adult” refers
to an individual who is (a) a natural person age 65 and older, or (b) a natural
person age 18 and older who is reasonably believed to have a mental or physical
impairment that renders the individual unable to protect his or her own
interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the
amount
of redemption proceeds electronically to your pre-authorized bank account.
Redemption checks are mailed to your address of record, via first class U.S.
mail, unless you make other arrangements with the Funds’ transfer
agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the
Funds’ transfer agent are not liable for losses arising from actions taken in
accordance with instructions that are reasonably believed to be
genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and sales of
portfolio assets to meet redemption requests, both regularly and in stressed
market conditions. The Funds also have the ability to redeem in kind as further
described below under “Redemptions in Kind.” Certain Funds have a line of
credit, as disclosed in such Funds’ principal investment strategy and risk
disclosures that may be used to meet redemptions in stressed market
conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market
Fund and Invesco U.S. Government Money Portfolio only)
If you place your
redemption order by telephone, before 11:30 a.m. Eastern Time and request an
expedited redemption, the Funds’ transfer agent will transmit payment of
redemption proceeds on that same day via federal wire to a bank of record on
your account. If the Funds’ transfer agent receives your redemption order after
11:30 a.m. Eastern Time and before the close of the customary trading session of
the NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The right of
redemption may be suspended or the date of payment postponed when (a) trading on
the NYSE is restricted, as determined by applicable rules and regulations of the
SEC, (b) the NYSE is closed for other than customary weekend and holiday
closings, (c) the SEC has by order permitted such suspension, or (d) an
emergency as determined by the SEC exists making disposition of portfolio
securities or the valuation of the net assets of the Fund not reasonably
practicable. With respect to Invesco Government Money Market Fund, Invesco U.S.
Government Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S.
Government Money Portfolio, in the event that the Fund, at the end of a business
day, has invested less than 10% of its total assets in weekly liquid assets or,
with respect to the retail and government money market funds, the Fund’s price
per share as computed for the purpose of distribution, redemption and
repurchase, rounded to the nearest 1%, has deviated from the stable price
established by the Fund’s Board of Trustees (“Board”) or the Board, including a
majority of trustees who are not interested persons as defined in the 1940 Act,
determines that such a deviation is likely to occur, and the Board, including a
majority of trustees who are not interested persons of the Fund, irrevocably has
approved the liquidation of the Fund, the Fund’s Board has the authority to
suspend redemptions of Fund shares.
Liquidity
Fees
For Invesco Premier
Portfolio, the Board, in its discretion, may impose liquidity fees of up to 2%
of the value of the shares redeemed, if such fee is determined to be in
the
best
interest of the Fund.
The
Board may delegate liquidity fee determinations to the Adviser or its officers,
subject to written guidelines.
Liquidity
fees are most likely to
be imposed, if at all, during times of extraordinary market stress. In the event
that a liquidity fee is imposed, the Board expects that for the duration of its
implementation and the day after which such fee is terminated, the Fund would
strike only one net asset value per day, at the Fund’s last scheduled net asset
value calculation time.
The
imposition and termination of a liquidity fee will be available
on the Fund’s website. In addition, a Fund will communicate such action through
a supplement to its registration statement and may further communicate such
action through a press release or by other means. If a liquidity fee is applied
by the Board, it will be charged on all redemption orders submitted after the
effective time of the imposition of the fee by the Board. Liquidity fees would
reduce the amount you receive upon redemption of your shares.
Liquidity
fees will generally be
used to assist a Fund to help preserve its market–based NAV per share. It is
possible that a liquidity fee will be returned to shareholders in the form of a
distribution. The Board may, in its discretion, terminate a liquidity fee at any
time if it believes such action to be in the best interest of a Fund. When a fee
is in place, the Fund may elect not to permit the purchase of shares or to
subject the purchase of shares to certain conditions, which may include
affirmation of the purchaser’s knowledge that a fee is in effect. When a fee is
in place, shareholders will not be permitted to exchange into or out of a
Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees
received by a Fund, and such tax treatment may be the subject to future IRS
guidance. If a Fund receives liquidity fees, it will consider the appropriate
tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested by the
Funds or their designees to impose or help to implement a liquidity fee as
requested from time to time, including the rejection of orders due to the
imposition of a fee or the prompt re-confirmation of orders following a
notification regarding the implementation of a fee. If a liquidity fee is
imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness
of the liquidity fee and the submission of such order information to the Fund or
its designee prior to the next calculation of a Fund’s net asset value. Unless
otherwise agreed to between a Fund and financial intermediary, the Fund will
withhold liquidity fees on behalf of financial intermediaries. With regard to
such orders, a redemption request that a Fund determines in its sole discretion
has been received in good order by the Fund or its designated agent prior to the
imposition of a liquidity fee may be paid by the Fund without the deduction of a
liquidity fee. If a liquidity fee is imposed during the day, an intermediary who
receives both purchase and redemption orders from a single account holder is not
required to net the purchase and redemption orders. However, the intermediary is
permitted to apply the liquidity fee to the net amount of redemptions (even if
the purchase order was received prior to the time the liquidity fee was
imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose of
receiving orders, trades that are not transmitted to the Fund by the Financial
Intermediary before the time required by the Fund or the transfer agent may, in
the Fund’s discretion, be processed on an as-of basis, and any cost or loss to
the Fund or transfer agent or their affiliates, from such transactions shall be
borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6
shares)
You may arrange for
regular periodic withdrawals from your account in amounts equal to or greater
than $50 per Fund. The Funds’ transfer agent will redeem the appropriate number
of shares from your account to provide redemption proceeds in the amount
requested. You must have a total account balance of at least $5,000 in order to
establish a Systematic
A-15 The
Invesco Funds
Redemption Plan,
unless you are establishing a Required Minimum Distribution for a Retirement and
Benefit Plan. You can stop this plan at any time by giving ten days’ prior
notice to the Funds’ transfer agent.
Check
Writing
The Funds’ transfer
agent has previously provided check writing privileges for accounts in the
following Funds and share classes:
◾
Invesco Government
Money Market Fund, Invesco Cash Reserve Shares, Class AX shares,
Class Y shares and Investor Class shares
◾
Invesco U.S.
Government Money Portfolio, Invesco Cash Reserve Shares and Class Y
shares
◾
Invesco Premier
Portfolio, Investor Class shares
◾
Invesco Premier
U.S. Government Money Portfolio, Investor Class shares
Until December 31,
2023, you may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing
authorization form. Effective
August 28, 2023, the Funds’ transfer agent no longer accepts Check Writing
authorization forms and, effective December 31, 2023, the Fund’s transfer agent
will cease accepting checks as a valid form of redemption.
Check
writing privileges are not available for Retirement and Benefit Plans. Checks are
not eligible to be converted to ACH by the payee. You may not give authorization
to a payee by phone to debit your account by ACH for a debt owed to the
payee.
If
you do not have a sufficient number of shares in your account to cover the amount of
the check and any applicable deferred sales charge, the check will be returned
and no shares will be redeemed. Because it is not possible to determine your
account’s value in advance, you should not write a check for the entire value of
your account or try to close your account by writing a check.
Until December 31,
2023, a check writing redemption request which is verifiably submitted to a
Fund’s agent before a liquidity fee is imposed will be considered a valid
redemption and will be processed normally.
Signature
Guarantees
The Funds’ transfer
agent requires a signature guarantee in the following circumstances:
◾
When your
redemption proceeds exceed $250,000 per Fund.
◾
When you request
that redemption proceeds be paid to someone other than the registered owner of
the account.
◾
When you request
that redemption proceeds be sent somewhere other than the address of record or
bank of record on the account.
◾
When you request
that redemption proceeds be sent to a new address or an address that changed in
the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a
number
of different types of financial institutions. Call the Funds’ transfer agent for
additional information. Some institutions have transaction amount maximums for
these guarantees. Please check with the guarantor institution to determine
whether the signature guarantee offered will be sufficient to cover the value of
your transaction request.
Redemptions
in Kind
Although the Funds
generally intend to pay redemption proceeds solely in cash, the Funds reserve
the right to determine, in their sole discretion, whether to satisfy redemption
requests by making payment in securities or other property (known as a
redemption in kind). Redemptions in kind may result in transaction costs and/or
market fluctuations associated with liquidating or holding the securities,
respectively.
Purchases-in-Kind
You may purchase
shares of a Fund by transferring securities to a Fund in exchange for Fund
shares (“in-kind purchases”). In-kind purchases may be made only upon the Funds’
approval and determination that the securities are acceptable investments for
the Fund and are purchased consistent with the Fund’s procedures relating to
in-kind purchases. The Funds reserve the right to amend or terminate this
practice at any time. You must call the Funds at (800) 959-4246 before sending
any securities. Please see the SAI for additional details.
Redemptions
by Large Shareholders
At times, the Fund
may experience adverse effects when certain large shareholders redeem large
amounts of shares of the Fund. Large redemptions may cause the Fund to sell
portfolio securities at times when it would not otherwise do so. In addition,
these transactions may also accelerate the realization of taxable income to
shareholders (if applicable) if such sales of investments resulted in gains and
may also increase transaction costs and/or increase in the Fund’s expense ratio.
When experiencing a redemption by a large shareholder, the Fund may delay
payment of the redemption request up to seven days to provide the investment
manager with time to determine if the Fund can redeem the request-in-kind or to
consider other alternatives to lessen the harm to remaining shareholders. Under
certain circumstances, however, the Fund may be unable to delay a redemption
request, which could result in the automatic processing of a large redemption
that is detrimental to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If your account
(Class A, C, P, S and Investor Class shares only) has been open at least one
year, you have not made an additional purchase in the account during the past
six calendar months, and the value of your account falls below $500 for three
consecutive months, the Funds have the right to redeem the account after giving
you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by
initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions of
accounts with small balances. The Fund is not responsible for any small account
balance policies imposed by financial intermediaries or for notifying
shareholders of any changes to them. See “Waivers Available Through Certain
Financial Intermediaries and Other Financial Intermediary-Specific Arrangements”
for more information on certain intermediary-specific small account balance
policies. Please consult with your financial intermediary if you have any
questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security or other
tax identification number on your account application, or the Fund is not able
to verify your identity as required by law, the Fund may, at its discretion,
redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors, the
Invesco Premier Portfolio reserve the right to redeem shares in any account that
the Funds cannot confirm to their satisfaction are beneficially owned by natural
persons. The Funds will provide advance written notice of their intent to make
any such involuntary redemptions. The Funds reserve the right to redeem shares
in any account that they cannot confirm to their satisfaction are beneficially
owned by natural persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss in an
investor’s account or tax liability resulting from an involuntary
redemption.
Minimum
Account Balance (Applicable for all classes except Class R5 and R6
shares)
A low balance fee
of $12 per year may be deducted in the fourth quarter of each year from all
accounts held in the Funds (each a Fund Account) with a value less than the low
balance amount (the Low Balance Amount) as determined from time to time by the
Funds and the Adviser. The Funds and the Adviser generally expect the Low
Balance Amount to be $750, but such amount may be adjusted for any year
depending on various factors, including market conditions. The Low Balance
Amount and the date on which it will be deducted from any Fund Account will be
posted on our website, www.invesco.com/us, on or about November 1 of each year.
This fee will be payable to the Funds’ transfer agent by redeeming from a Fund
Account sufficient shares owned by a shareholder and will be used by the Funds’
transfer agent to offset amounts that would otherwise be payable by the Funds to
the Funds’ transfer agent under the Funds’ transfer agency agreement with the
Funds’ transfer agent. The low balance fee does not apply to participant
accounts in advisory programs or to Retirement and Benefit
Plans.
A-16 The
Invesco Funds
Exchanging
Shares
You may, under
certain circumstances, exchange shares in one Fund for those of another Fund. An
exchange is the purchase of shares in one Fund which is paid for with the
proceeds from a redemption of shares of another Fund effectuated on the same
day. Any gain on the transaction may be subject to federal income tax.
Accordingly, the procedures and processes applicable to redemptions of Fund
shares, as discussed under the heading “Redeeming Shares” above, will apply.
Before requesting an exchange, review the prospectus of the Fund you wish to
acquire.
All
exchanges are subject to the limitations set forth in the prospectuses
of the
Funds. If you wish to exchange shares of one Fund for those of another Fund, you
must consult the prospectus of the Fund whose shares you wish to acquire to
determine whether the Fund is offering shares to new investors and whether you
are eligible to acquire shares of that Fund.
Permitted
Exchanges
Except as otherwise
provided herein or in the SAI, you generally may exchange your shares for shares
of the same class of another Fund. The following table shows generally permitted
exchanges from one Fund to another Fund (exceptions listed below under
“Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve
Shares |
|
| |
Investor
Class |
Class
A, Investor Class |
|
| |
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
Class
C |
Class
C* |
|
| |
Class
CX |
Class
C, CX |
|
| |
Class
R |
Class
R* |
|
| |
Class
R5 |
Class
R5 |
|
| |
Class
R6 |
Class
R6 |
|
| |
Class
Y |
Class
Y* |
|
*
You may exchange Class Y shares of Invesco U.S. Government Money Portfolio
for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such
share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into
Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other
Fund. | |
Exchanges
into Invesco Senior Loan Fund and Invesco Dynamic Credit Opportunity
Fund
Invesco Senior Loan
Fund and Invesco Dynamic Credit Opportunity Fund
(the
“Interval Funds”) are closed-end interval funds that continuously offer their
shares pursuant to the terms and conditions of their prospectuses. The Adviser
is the investment adviser for the Interval Funds. As with the Invesco Funds, you
generally may exchange your shares of any Invesco Fund for the same class of
shares of the Interval Funds. Please refer to the prospectuses for the Interval
Funds for more information, including the share classes offered by each Interval
Fund and limitations on exchanges out of the Interval Funds.
Exchanges
Not Permitted
The following
exchanges are not permitted:
◾
Investor Class
shares cannot be exchanged for Class A shares of any Fund which offers
Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited
Term Municipal Income Fund cannot be exchanged for Class A shares of
those Funds.
◾
Invesco Cash
Reserve Shares cannot be exchanged for Class C or R shares if the shares
being exchanged were acquired by exchange from Class A shares of any
Fund.
◾
All existing
systematic exchanges and reallocations will cease and these options will no
longer be available on all 403(b) prototype plans.
◾
Class A, C or R
shares of a Fund acquired by exchange of Class Y shares of Invesco U.S.
Government Money Portfolio cannot be exchanged for Class Y shares of any Fund,
except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares must have
been held for at least one day prior to the exchange with the exception of
dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares for up to
five business days if it determines that it would be materially disadvantaged by
the immediate transfer of exchange proceeds. The exchange privilege is not an
option or right to purchase shares. Any of the participating Funds or the
distributor may modify or terminate this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You may be required
to pay an initial sales charge when exchanging from a Fund with a lower initial
sales charge than the one into which you are exchanging. If you exchange into
shares that are subject to a CDSC, the Funds’ transfer agent will begin the
holding period for purposes of calculating the CDSC on the date you made your
initial purchase.
In
addition, as a result of differences in the forms of distribution plans
among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R
shares of a Fund for the same class of shares of another Fund may result in
investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into.
Please refer to the prospectus fee table and financial highlights table and the
SAI for more information on the fees and expenses, including applicable 12b-1
fees, of the Fund you wish to acquire.
Share
Class Conversions
Shares of one class
of a Fund may be converted into shares of another class of the same Fund,
provided that you are eligible to buy that share class. Investors who hold Fund
shares through a financial intermediary that does not have an agreement to make
certain share classes of the Funds available or that cannot systematically
support the conversion may not be eligible to convert their shares. Furthermore,
your financial intermediary may have discretion to effect a conversion on your
behalf. Consult with your financial intermediary for details. Any CDSC
associated with the converting shares will be assessed immediately prior to the
conversion to the new share class. The conversion of shares of one class of a
Fund into shares of another class of the same Fund is not taxable for federal
income tax purposes and no gain or loss will be reported on the transaction. See
the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus for the
share class into which you are seeking to convert your shares prior to the
conversion.
Automatic
Conversion of Class C and Class CX Shares
Class C and Class
CX shares held for eight years after purchase are eligible for automatic
conversion into Class A and Class AX shares of the same Fund, respectively,
except that for the Invesco Government Money Market Fund and Invesco U.S.
Government Money Portfolio, the Funds’ Class C and/or Class CX shares would be
eligible to automatically convert into the Fund’s Invesco Cash Reserve Share
Class and all existing Class C shares of Invesco Short Term Municipal Fund will
automatically convert to Class A shares of that Fund at the end of June 2022
(the Conversion Feature). The automatic conversion pursuant to the Conversion
Feature will generally occur at the end of the month following the eighth
anniversary after a purchase of Class C or Class CX shares (the Conversion
Date). The first conversion of Class C and Class CX shares to Class A and Class
AX shares under this policy would occur at the end of December 2020 for all
Class C and Class CX shares that were held for more than eight years as of
November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis of the
NAV per share, without the imposition of any sales charge (including a CDSC),
fee or other charge. All such automatic conversions of
A-17 The
Invesco Funds
Class C and Class
CX shares will constitute tax-free exchanges for federal income tax
purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of dividends and
distributions will convert to Class A and Class AX shares, respectively, of the
Fund (or Invesco Cash Reserve shares for Invesco Government Money Market Fund)
on the Conversion Date pro rata with the converting Class C and Class CX shares
of that Fund that were not acquired through reinvestment of dividends and
distributions.
Class
C or Class CX shares held through a financial intermediary in existing omnibus
Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may
be converted pursuant to the Conversion Feature by the financial intermediary
once it is determined that the Class C or Class CX shares have been held for the
required holding period. It is the financial intermediary’s (and not the Fund’s)
responsibility to keep records and to ensure that the shareholder is credited
with the proper holding period as the Fund and its agents may not have
transparency into how long a shareholder has held Class C or Class CX shares for
purposes of determining whether such Class C or Class CX shares are eligible to
automatically convert pursuant to the Conversion Feature. In order to determine
eligibility for automatic conversion in these circumstances, it is the
responsibility of the shareholder or their financial intermediary to determine
that the shareholder is eligible to exercise the Conversion Feature, and the
shareholder or their financial intermediary may be required to maintain records
that substantiate the holding period of Class C or Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs or
platforms that impose a different conversion schedule or eligibility
requirements for conversions of Class C or Class CX shares. In these cases,
Class C and Class CX shares of certain shareholders may not be eligible for
automatic conversion pursuant to the Conversion Feature as described above. The
Fund has no responsibility for overseeing, monitoring or implementing a
financial intermediary’s process for determining whether a shareholder meets the
required holding period for automatic conversion. Please consult with your
financial intermediary if you have any questions regarding the Conversion
Feature.
Share
Class Conversions Not Permitted
The following share
class conversions are not permitted:
◾
Conversions into
Class A from Class A2 of the same Fund.
◾
Conversions into
Class A2, Class AX, Class CX, Class P or Class S of the same
Fund.
Rights
Reserved by the Funds
Each Fund and its
agents reserve the right at any time to:
◾
Reject or cancel
all or any part of any purchase or exchange order.
◾
Modify any terms or
conditions related to the purchase, redemption or exchange of shares of any
Fund.
◾
Reject or cancel
any request to establish a Systematic Purchase Plan or Systematic Redemption
Plan.
◾
Modify or terminate
any sales charge waivers or exceptions.
◾
Suspend, change or
withdraw all or any part of the offering made by this
prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While the Funds
provide their shareholders with daily liquidity, their investment programs are
designed to serve long-term investors and are not designed to accommodate
excessive short-term trading activity in violation of our policies described
below. Excessive short-term trading activity in the Funds’ shares (i.e., a
purchase of Fund shares followed shortly thereafter by a redemption of such
shares, or vice versa) may hurt the long-term performance of certain Funds by
requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient
management of such Funds by causing them to incur increased brokerage and
administrative costs. Where excessive short-term trading activity seeks to take
advantage of arbitrage opportunities from stale prices for portfolio securities,
the value of Fund shares held by long-term investors may be diluted. The Board
has adopted
policies and
procedures designed to discourage excessive or short-term trading of Fund shares
for all Funds except the money market funds, Invesco Conservative Income Fund,
and Invesco Short Term Municipal Fund. However, there is the risk that these
Funds’ policies and procedures will prove ineffective in whole or in part to
detect or prevent excessive or short-term trading. These Funds may alter their
policies at any time without prior notice to shareholders if the Adviser
believes the change would be in the best interests of long-term
shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed
to discourage excessive short-term trading in the retail Funds:
◾
Trade activity
monitoring.
◾
Discretion to
reject orders.
◾
Purchase
blocking.
◾
The use of fair
value pricing consistent with the valuation policy approved by the Board and
related procedures.
Each
of these tools is described in more detail below. Although these tools are designed
to discourage excessive short-term trading, you should understand that none of
these tools alone nor all of them taken together eliminate the possibility that
excessive short-term trading activity in the Funds will occur. Moreover, each of
these tools involves judgments that are inherently subjective. Invesco
Affiliates seek to make these judgments to the best of their abilities in a
manner that they believe is consistent with long-term shareholder
interests.
Money
Market Funds. The Boards of
Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier
U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the
money market funds) have not adopted any policies and procedures that would
limit frequent purchases and redemptions of such Funds’ shares. The Boards of
the money market funds considered the risks of not having a specific policy that
limits frequent purchases and redemptions, and determined that those risks were
minimal. Nonetheless, to the extent that a money market fund must maintain
additional cash and/or securities with short-term durations in greater amounts
than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate to
adopt any such policies and procedures for the money market funds for the
following reasons:
◾
The money market
funds are offered to investors as cash management vehicles; therefore, investors
should be able to purchase and redeem shares regularly and
frequently.
◾
One of the
advantages of a money market fund as compared to other investment options is
liquidity. Any policy that diminishes the liquidity of the money market funds
will be detrimental to the continuing operations of such Funds.
◾
With respect to the
money market funds maintaining a constant net asset value, the money market
funds’ portfolio securities are valued on the basis of amortized cost, and such
Funds seek to maintain a constant net asset value. As a result, the money market
funds are not subject to price arbitrage opportunities.
◾
With respect to the
money market funds maintaining a constant net asset value, because such Funds
seek to maintain a constant net asset value, investors are more likely to expect
to receive the amount they originally invested in the Funds upon redemption than
other mutual funds.
Invesco
Conservative Income Fund. The Board of
Invesco Conservative Income Fund has not adopted any policies and procedures
that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a
specific policy that limits frequent purchases and redemptions, and determined
that those risks were minimal especially in light of the reasons for not having
such a policy as described below. Nonetheless, to the extent that the Fund must
maintain additional cash and/or securities with short-term durations in greater
amounts than may otherwise be required or borrow to honor redemption requests,
the Fund’s yield could be negatively impacted.
A-18 The
Invesco Funds
The
Board of the Invesco Conservative Income Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the
following reasons:
◾
The Fund is offered
to investors as a cash management vehicle; investors perceive an investment in
the Fund as an alternative to cash and must be able to purchase and redeem
shares regularly and frequently.
◾
One of the
advantages of the Fund as compared to other investment options is liquidity. Any
policy that diminishes the liquidity of the Fund will be detrimental to the
continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur increased
brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel
any
part of any purchase order. This could occur if the Fund determines that such
purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of
Invesco Short Term Municipal Fund has not adopted any policies and procedures
that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a
specific policy that limits frequent purchases and redemptions, and determined
that those risks were minimal, especially in light of the reasons for not having
such a policy as described below. Nonetheless, to the extent that the Fund must
maintain additional cash and/or securities with short-term durations in greater
amounts than may otherwise be required or borrow to honor redemption requests,
the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is appropriate to
adopt any such policies and procedures for the Fund for the following
reasons:
◾
The Fund is
designed to address the needs of retail investors who seek liquidity in their
investment and seek the ability to purchase and redeem shares at any
time.
◾
Any policy that
diminishes the ability of shareholders to purchase and redeem shares of the Fund
will be detrimental to the continuing operations of the Fund.
◾
The Fund generally
invests in short duration liquid investment grade municipal
securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur increased
brokerage and administrative costs. The Fund and its agent reserve the right at
any time to reject or cancel any part of any purchase order. This could occur if
the Fund determines that such purchase may disrupt the Fund’s operation or
performance.
Trade
Activity Monitoring
Invesco Affiliates
monitor selected trades on a daily basis in an effort to detect excessive
short-term trading activities. If, as a result of this monitoring, Invesco
Affiliates believe that a shareholder has engaged in excessive short-term
trading, they will seek to act in a manner that they believe is consistent with
the best interests of long-term investors, which may include taking steps such
as (i) asking the shareholder to take action to stop such activities or (ii)
refusing to process future purchases or exchanges related to such activities in
the shareholder’s accounts other than exchanges into a money market fund.
Invesco Affiliates will use reasonable efforts to apply the Funds’ policies
uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through
accounts that are
maintained by intermediaries (rather than the Funds’ transfer agent) and through
conduit investment vehicles may be limited or non-existent.
Discretion
to Reject Orders
If a Fund or an
Invesco Affiliate determines, in its sole discretion, that your short-term
trading activity is excessive, the Fund may, in its sole discretion, reject any
additional purchase and exchange orders. This discretion may be exercised with
respect to purchase or exchange orders placed directly with the Funds’ transfer
agent or through a financial intermediary.
Purchase
Blocking Policy
The Funds (except
those listed below) have adopted a policy under which any shareholder redeeming
shares having a value of $50,000 or more from a Fund on any trading day will be
precluded from investing in that Fund for 30 calendar days after the redemption
transaction date. The policy applies to redemptions and purchases that are part
of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block,
such as: purchases and redemptions of shares having a value of less than
$50,000; systematic purchase, redemption and exchange account options; transfers
of shares within the same Fund; non-discretionary rebalancing in fund-of-funds;
asset allocation features; fee-based accounts; account maintenance fees; small
balance account fees; plan-level omnibus Retirement and Benefit Plans; death and
disability and hardship distributions; loan transactions; transfers of assets;
Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations;
and mandatory distributions from Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those not listed
above) of the purchase blocking policy at any time. Further, the purchase
blocking policy may be waived with respect to specific shareholder accounts in
those instances where the Adviser determines that its surveillance procedures
are adequate to detect frequent trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are unable to apply
Invesco’s purchase blocking policy, the Adviser will accept the establishment of
an account only if the Adviser believes the policies and procedures are
reasonably designed to enforce the frequent trading policies of the Funds. You
should refer to disclosures provided by the financial intermediary with which
you have an account to determine the specific trading restrictions that apply to
you. If the Adviser identifies any activity that may constitute frequent
trading, it reserves the right to contact the intermediary and request that the
intermediary either provide information regarding an account owner’s
transactions or restrict the account owner’s trading. There is no guarantee that
all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income Fund,
Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco
Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco
U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The price of each
Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco
Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S.
Government Money Portfolio and Invesco U.S. Government Money Portfolio) value
portfolio securities for which market quotations are readily available at market
value. Securities and other assets quoted in foreign currencies are valued in
U.S. dollars based on the prevailing exchange rates on that day. The Funds
(except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco
Premier U.S. Government Money Portfolio and Invesco U.S. Government Money
Portfolio) value securities and assets for which market quotations are
unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio value portfolio
securities on the basis of amortized cost, which approximates market value. This
method of valuation is designed to enable a Fund to price its shares at $1.00
per share. The Funds cannot guarantee their net asset value will always remain
at $1.00 per share. Securities and other assets quoted in foreign currencies are
valued in U.S. dollars based on the prevailing exchange rates on that day. The
Fund values securities and assets for which market quotations are unavailable at
their “fair value,” which is described below.
Even
when market quotations are available, they may be stale or not representative of
market value in the Adviser’s judgment (“unreliable”) because the security is
not traded frequently, trading on the security ceased before the close of the
trading market or issuer specific events occurred
A-19 The
Invesco Funds
after the security
ceased trading or because of the passage of time between the close of the market
on which the security trades and the close of the NYSE and when the Fund
calculates its net asset value. Issuer specific events may cause the last market
quotation to be unreliable. Such events may include a merger or insolvency,
events that affect a geographical area or an industry segment, such as political
events or natural disasters, or market events, such as a significant movement in
the U.S. market. Where the Adviser determines that the closing price of the
security is stale or unreliable, the Adviser will value the security at its fair
value.
A
fair value price is an estimated price that requires consideration of all
appropriate
factors, including indications of fair value available from pricing services.
Fair value pricing involves judgment and a Fund that uses fair value
methodologies may value securities higher or lower than another Fund using
market quotations or its own fair value methodologies to price the same
securities. Investors who purchase or redeem Fund shares on days when the Fund
is holding fair-valued securities may receive a greater or lesser number of
shares, or higher or lower redemption proceeds, than they would have received if
the Fund had not fair-valued the security or had used a different
methodology.
The
Board has designated the Adviser to perform the daily determination of
fair value prices in accordance with Board approved policies and related
procedures, subject to the Board’s oversight. Fair value pricing methods and
pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that accurately
reflects the value of a Fund’s portfolio at the time that the NAV is calculated.
An additional intended effect is to discourage those seeking to take advantage
of arbitrage opportunities resulting from “stale” prices and to mitigate the
dilutive impact of any such arbitrage. However, the application of fair value
pricing cannot eliminate the possibility that arbitrage opportunities will
exist.
Specific types of
securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured
floating rate loans and senior secured floating rate debt securities are fair
valued using evaluated quotes provided by an independent pricing service.
Evaluated quotes provided by the pricing service may reflect appropriate factors
such as market quotes, ratings, tranche type, industry, company performance,
spread, individual trading characteristics, institution-size trading in similar
groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations
are generally available and reliable for domestic exchange traded equity
securities. If market quotations are not available or are unreliable, the
Adviser will value the security at fair value in good faith using the valuation
policy approved by the Board and related procedures.
Foreign
Securities. If market
quotations are available and reliable for foreign exchange traded equity
securities, the securities will be valued at the market quotations. Because
trading hours for certain foreign securities end before the close of the NYSE,
closing market quotations may become unreliable. If between the time trading
ends on a particular security and the close of the customary trading session on
the NYSE events occur that are significant and may make the closing price
unreliable, the Fund may fair value the security. If an issuer specific event
has occurred that the Adviser determines, in its judgment, is likely to have
affected the closing price of a foreign security, it will price the security at
fair value. The Adviser also relies on a screening process from a pricing vendor
to indicate the degree of certainty, based on historical data, that the closing
price in the principal market where a foreign security trades is not the current
market value as of the close of the NYSE. For foreign securities where the
Adviser believes, at the approved degree of certainty, that the price is not
reflective of current market value, the Adviser will use the indication of fair
value from the pricing service to determine the fair value of the security. The
pricing vendor, pricing methodology or degree of certainty may change from time
to time.
Fund
securities primarily traded on foreign markets may trade on days that are not
business days of the Fund. Because the net asset value of Fund shares is
determined only on business days of the Fund, the value of the
portfolio
securities of a Fund that invests in foreign securities may change on days when
you will not be able to purchase or redeem shares of the Fund.
Fixed
Income Securities. Fixed income
securities, such as government, corporate, asset-backed and municipal bonds,
convertible securities, including high yield or junk bonds, and loans, generally
are valued on the basis of prices provided by independent pricing services.
Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as
institution-size trading in similar groups of securities, developments related
to special securities, dividend rate, maturity and other market data. Pricing
services generally value fixed income securities assuming orderly transactions
of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than
institutional round lots. Prices received from pricing services are fair value
prices. In addition, if the price provided by the pricing service and
independent quoted prices are unreliable, the Adviser will fair value the
security using the valuation policy approved by the Board and related
procedures.
Short-term
Securities. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio value all their
securities at amortized cost. Invesco Limited Term Municipal Income Fund values
variable rate securities that have an unconditional demand or put feature
exercisable within seven days or less at par, which reflects the market value of
such securities.
Futures
and Options. Futures contracts
are valued at the final settlement price set by the exchange on which they are
principally traded. U.S. exchange-traded options are valued at the mean between
the last bid and asked prices from the exchange on which they principally trade.
Non-U.S. exchange-traded options are valued at the final settlement price set by
the exchange on which they trade. Options not listed on an exchange and swaps
generally are valued using pricing provided from independent pricing
services.
Swap
Agreements. Swap Agreements
are fair valued using an evaluated quote provided by an independent pricing
service. Evaluated quotes provided by the pricing service are based on a model
that may include end of day net present values, spreads, ratings, industry and
company performance.
Open-end
Funds.
If a Fund invests in other open-end funds, other than open-end funds that are
exchange traded, the investing Fund will calculate its net asset value using the
net asset value of the underlying fund in which it invests, and the prospectuses
for such open-end funds explain the circumstances under which they will use fair
value pricing and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier Portfolio
and Invesco Premier U.S. Government Money Portfolio, generally determines the
net asset value of its shares on each day the NYSE is open for trading (a
business day) as of approximately 4:00 p.m. Eastern Time (the customary close of
regular trading) or earlier in the case of a scheduled early close. In the event
of an unscheduled early close of the NYSE, each Fund, except for Invesco
Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S.
Government Money Portfolio, generally still will determine the net asset value
of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio
securities traded on the NYSE would be valued at their closing prices unless the
Adviser determines that a “fair value” adjustment is appropriate due to
subsequent events occurring after an early close consistent with the valuation
policy approved by the Board and related procedures. Invesco Government Money
Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at
5:30 p.m. Eastern Time on each business day. A business day for Invesco
Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S.
Government Money Portfolio is any day that (1) both the Federal Reserve Bank of
New York and a Fund’s custodian are open for business and (2) the primary
trading markets for the Fund’s portfolio instruments are open and the Fund’s
management believes there is an adequate market to meet purchase and redemption
requests. Invesco
A-20 The
Invesco Funds
Government Money
Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio are authorized not to open for trading on a day that is
otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for
trading; any such day will not be considered a business day. Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier
U.S. Government Money Portfolio, Invesco U.S. Government Money Portfolio
also may close early on a business day if SIFMA recommends that government
securities dealers close early. If Invesco Government Money Market Fund, Invesco
Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses
its discretion to close early on a business day, the Fund will calculate its net
asset value as of the time of such closing Invesco Premier Portfolio and Invesco
U.S. Government Money Portfolio are authorized to not open for trading on a day
that is otherwise a business day if the NYSE recommends that government
securities dealers not open for trading; any such day will not be considered a
business day. Invesco Premier Portfolio also may close early on a business day
if the NYSE recommends that government securities dealers close
early.
For
financial reporting purposes and shareholder transactions on the last day of the
fiscal quarter, transactions are normally accounted for on a trade date basis.
For purposes of executing shareholder transactions in the normal course of
business (other than shareholder transactions at a fiscal period-end), each
Fund’s portfolio securities transactions are recorded no later than the first
business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation Fund,
Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives
Fund, Invesco Global Allocation Fund, Invesco Global Strategic Income Fund,
Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund,
Invesco International Bond Fund and Invesco Macro Allocation Strategy Fund may
each invest up to 25% of their total assets in shares of their respective
subsidiaries (the Subsidiaries). The Subsidiaries offer to redeem all or a
portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the
value of the respective Subsidiary’s portfolio investments. The Subsidiaries
price their portfolio investments pursuant to the same pricing and valuation
methodologies and procedures used by the Funds, which require, among other
things, that each of the Subsidiaries’ portfolio investments be marked-to-market
(that is, the value on each of the Subsidiaries’ books changes) each business
day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’ website at
www.invesco.com/us.
Fair
Value Pricing
Securities owned by
a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio,
Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government
Money Portfolio) are to be valued at current market value if market quotations
are readily available. All other securities and assets of a Fund for which
market quotations are not readily available are to be valued at fair value
determined in good faith consistent with the valuation policy approved by the
Board and related procedures. An effect of fair value pricing may be to reduce
the ability of frequent traders to take advantage of arbitrage opportunities
resulting from potentially “stale” prices of portfolio holdings. However, it
cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ from the
Adviser's valuation of the investment, particularly for securities that are
valued using a fair valuation technique. When fair valuation techniques are
applied, the Adviser uses available information, including both observable and
unobservable inputs and assumptions (i.e., publicly traded company multiples,
growth rate, time to exit), to determine a methodology that will result in a
valuation that the Adviser believes approximates market value. Fund securities
that are fair valued may be subject to greater fluctuation in their value from
one day to the next than would be the case if market quotations were used.
Because of the inherent uncertainties of valuation, and the degree of
subjectivity in such decisions,
the Fund could
realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each Fund prices
purchase, exchange and redemption orders at the net asset value next calculated
by the Fund after the Fund’s transfer agent, authorized agent or designee
receives an order in good order for the Fund. Purchase, exchange and redemption
orders must be received prior to the close of business on a business day, as
defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is
processed.
Currently,
certain financial intermediaries may serve as agents for the Funds and accept
orders on their behalf. Where a financial intermediary serves as agent, the
order is priced at the Fund’s net asset value next calculated after it is
accepted by the financial intermediary. In such cases, if requested by a Fund,
the financial intermediary is responsible for providing information with regard
to the time that such order for purchase, redemption or exchange was received.
Orders submitted through a financial intermediary that has not received
authorization to accept orders on a Fund’s behalf are priced at the Fund’s net
asset value next calculated by the Fund after it receives the order from the
financial intermediary and accepts it, which may not occur on the day submitted
to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco
Steelpath Funds)
In calculating the
Fund’s daily NAV, the Fund will, among other things, account for its deferred
tax liability and/or asset balances. As a result, any deferred tax liability
and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S.
federal corporate
income tax rate plus an estimated state and local income tax rate for its future
tax liability associated with MLP distributions considered to be a return of
capital, as well as for its future tax liability associated with the capital
appreciation of its investments. The Fund’s current and deferred tax liability,
if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly
from year to year depending on the nature of the Fund’s investments, the
performance of those investments and general market conditions. Any deferred tax
liability balance will reduce the Fund’s NAV. Upon the Fund’s sale of an MLP
security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles, a
deferred tax asset balance, which reflects an estimate of the Fund’s future tax
benefit associated with net operating losses and unrealized losses. Any deferred
tax asset balance will increase the Fund’s NAV. To the extent the Fund has a
deferred tax asset balance, the Fund will assess, in accordance with generally
accepted accounting principles, whether a valuation allowance, which would
offset the value of the Fund’s deferred tax asset balance, is required. Pursuant
to Financial Accounting Standards Board Accounting Standards Codification 740
(FASB ASC 740), the Fund will assess a valuation allowance to reduce the
deferred tax asset balance if, based on the weight of all available evidence,
both negative and positive, it is more likely than not that the deferred tax
asset balance will not be realized. The Fund will use judgment in considering
the relative impact of negative and positive evidence. The weight given to the
potential effect of negative and positive evidence will be commensurate with the
extent to which such evidence can be objectively verified. The Fund’s assessment
considers, among other matters, the nature, frequency and severity of current
and cumulative losses, the duration of statutory carry forward periods and the
associated risk that operating loss and capital loss carry forwards may be
limited or expire unused, and unrealized gains and losses on investments.
Consideration is also given to market cycles, the severity and duration of
historical deferred tax assets, the impact of redemptions, and the level of MLP
distributions. The Fund will assess whether a valuation allowance is required to
offset any deferred tax asset balance in connection with the calculation of the
Fund’s NAV per share each day; however, to the extent the final valuation
allowance differs from the estimates the Fund used
A-21 The
Invesco Funds
in calculating the
Fund’s daily NAV, the application of such final valuation allowance could have a
material impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using estimates of
effective tax rates expected to apply to taxable income in the years such
balances are realized. The Fund will rely to some extent on information provided
by MLPs in determining the extent to which distributions received from MLPs
constitute a return of capital, which may not be provided to the Fund on a
timely basis, to estimate the Fund’s deferred tax liability and/or asset
balances for purposes of financial statement reporting and determining its NAV.
If such information is not received from such MLPs on a timely basis, the Fund
will estimate the extent to which distributions received from MLPs constitute a
return of capital based on average historical tax characterization of
distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily
estimate of the Fund’s deferred tax liability and/or asset balances used to
calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax
liability. Actual income tax expense, if any, will be incurred over many years,
depending on if and when investment gains and losses are realized, the
then-current basis of the Fund’s assets and other factors. As a result, the
determination of the Fund’s actual tax liability may have a material impact on
the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current
estimates and assumptions regarding the Fund’s deferred tax liability and/or
asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its
estimates or assumptions regarding its deferred tax liability and/or asset
balances and any applicable valuation allowance as new information becomes
available. Modifications of the Fund’s estimates or assumptions regarding its
deferred tax liability and/or asset balances and any applicable valuation
allowance, changes in generally accepted accounting principles or related
guidance or interpretations thereof, limitations imposed on net operating losses
(if any) and changes in applicable tax law could result in increases or
decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds)
A Fund intends to
qualify each year as a regulated investment company (RIC) and, as such, is not
subject to entity-level tax on the income and gain it distributes to
shareholders. If you are a taxable investor, dividends and distributions you
receive from a Fund generally are taxable to you whether you reinvest
distributions in additional Fund shares or take them in cash. Every year, you
will be sent information showing the amount of dividends and distributions you
received from a Fund during the prior calendar year. In addition, investors in
taxable accounts should be aware of the following basic tax points as
supplemented below where relevant:
Fund Tax
Basics
◾
A Fund earns income
generally in the form of dividends or interest on its investments. This income,
less expenses incurred in the operation of a Fund, constitutes the Fund’s net
investment income from which dividends may be paid to you. If you are a taxable
investor, distributions of net investment income generally are taxable to you as
ordinary income.
◾
Distributions of
net short-term capital gains are taxable to you as ordinary income. A Fund with
a high portfolio turnover rate (a measure of how frequently assets within a Fund
are bought and sold) is more likely to generate short-term capital gains than a
Fund with a low portfolio turnover rate.
◾
Distributions of
net long-term capital gains are taxable to you as long-term capital gains no
matter how long you have owned your Fund shares.
◾
A portion of income
dividends paid by a Fund to you may be reported as qualified dividend income
eligible for taxation by individual shareholders at long-term capital gain
rates, provided certain holding period requirements are met. These reduced rates
generally are available for dividends derived from a Fund’s investment in stocks
of domestic corporations and qualified
foreign
corporations. In the case of a Fund that invests primarily in debt securities,
either none or only a nominal portion of the dividends paid by the Fund will be
eligible for taxation at these reduced rates.
◾
The use of
derivatives by a Fund may cause the Fund to realize higher amounts of ordinary
income or short-term capital gain, distributions from which are taxable to
individual shareholders at ordinary income tax rates rather than at the more
favorable tax rates for long-term capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if
paid to you by the end of January—are taxable for federal income tax purposes as
if received in December.
◾
Any long-term or
short-term capital gains realized on the sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your
shares for shares of another Fund is the same as a sale. An exchange occurs when
the purchase of shares of a Fund is made using the proceeds from a redemption of
shares of another Fund and is effectuated on the same day as the redemption.
Your gain or loss is calculated by subtracting from the gross proceeds your cost
basis. Gross proceeds and, for shares acquired on or after January 1, 2012
and disposed of after that date, cost basis will be reported to you and the
Internal Revenue Service (IRS). Cost basis will be calculated using the Fund’s
default method of average cost, unless you instruct the Fund to use a different
calculation method. As a service to you, the Fund will continue to provide to
you (but not the IRS) cost basis information for shares acquired before 2012,
when available, using the average cost method. Shareholders should carefully
review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting
these amounts on their federal income tax returns. If you hold your Fund shares
through a broker (or other nominee), please contact that broker (nominee) with
respect to reporting of cost basis and available elections for your account. For
more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our
website at www.Invesco.com/us.
◾
The conversion of
shares of one class of a Fund into shares of another class of the same Fund is
not taxable for federal income tax purposes and no gain or loss will be reported
on the transaction. This is true whether the conversion occurs automatically
pursuant to the terms of the class or is initiated by the
shareholder.
◾
At the time you
purchase your Fund shares, the Fund’s net asset value may reflect undistributed
income or undistributed capital gains. A subsequent distribution to you of such
amounts, although constituting a return of your investment, would be taxable.
Buying shares in a Fund just before it declares an income dividend or capital
gains distribution is sometimes known as “buying a dividend.” In addition, a
Fund’s net asset value may, at any time, reflect net unrealized appreciation,
which may result in future taxable distributions to you.
◾
By law, if you do
not provide a Fund with your proper taxpayer identification number and certain
required certifications, you may be subject to backup withholding on any
distributions of income, capital gains, or proceeds from the sale of your
shares. A Fund also must withhold if the IRS instructs it to do so. When
withholding is required, the amount will be 24% of any distributions or proceeds
paid.
◾
An additional 3.8%
Medicare tax is imposed on certain net investment income (including ordinary
dividends and capital gain distributions received from a Fund and net gains from
redemptions or other taxable dispositions of Fund shares) of U.S. individuals,
estates and trusts to the extent that such person’s “modified adjusted gross
income” (in the case of an individual) or “adjusted gross income” (in the case
of an estate or trust) exceeds a threshold amount. This Medicare tax, if
applicable, is reported by you on, and paid with, your federal income tax
return.
◾
You will not be
required to include the portion of dividends paid by a Fund derived from
interest on U.S. government obligations in your gross income for purposes
of personal and, in some cases, corporate income taxes in many state and local
tax jurisdictions. The percentage of dividends that constitutes dividends
derived from interest on federal obligations will be
A-22 The
Invesco Funds
determined
annually. This percentage may differ from the actual percentage of interest
received by the Fund on federal obligations for the particular days on which you
hold shares.
◾
Fund distributions
and gains from sale or exchange of your Fund shares generally are subject to
state and local income taxes.
◾
If a Fund qualifies
to pass through to you the tax benefits from foreign taxes it pays on its
investments, and elects to do so, then any foreign taxes it pays on these
investments may be passed through to you. You will then be required to include
your pro-rata share of these taxes in gross income, even though not actually
received by you, and will be entitled either to deduct your share of these taxes
in computing your taxable income, or to claim a foreign tax credit for these
taxes against your U.S. federal income tax.
◾
Foreign investors
should be aware that U.S. withholding, special certification requirements
to avoid U.S. backup withholding and claim any treaty benefits, and estate
taxes may apply to an investment in a Fund.
◾
Under the Foreign
Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30%
tax on income dividends made by the Fund to certain foreign entities, referred
to as foreign financial institutions or non-financial foreign entities, that
fail to comply (or be deemed compliant) with extensive reporting and withholding
requirements designed to inform the U.S. Department of the Treasury of
U.S.-owned foreign investment accounts. After December 31, 2018, FATCA
withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund
shares; however, based on proposed regulations issued by the IRS, which can be
relied upon currently, such withholding is no longer required unless final
regulations provide otherwise (which is not expected). A Fund may disclose the
information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws.
Withholding also may be required if a foreign entity that is a shareholder of a
Fund fails to provide the Fund with appropriate certifications or other
documentation concerning its status under FATCA.
◾
If a Fund invests
in an underlying fund taxed as a RIC, please see any relevant section below for
more information regarding the Fund’s investment in such underlying
fund.
The above
discussion concerning the taxability of Fund dividends and distributions and of
redemptions and exchanges of Fund shares is inapplicable to investors holding
shares through a tax-advantaged arrangement, such as Retirement and Benefit
Plans or 529 college savings plans. Such investors should refer to the
applicable account documents/program description for that arrangement for more
information regarding the tax consequences of holding and redeeming Fund
shares.
Funds
Investing in Municipal Securities
◾
You will not be
required to include the “exempt-interest” portion of dividends paid by the Fund
in either your gross income for federal income tax purposes or your net
investment income subject to the additional 3.8% Medicare tax. You will be
required to report the receipt of exempt-interest dividends and other tax-exempt
interest on your federal income tax returns. The percentage of dividends that
constitutes exempt-interest dividends will be determined annually. This
percentage may differ from the actual percentage of exempt interest received by
the Fund for the particular days in which you hold shares.
◾
A Fund may invest
in municipal securities the interest on which constitutes an item of tax
preference and could give rise to a federal alternative minimum tax liability
for noncorporate shareholders, unless such municipal securities were issued in
2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its
political subdivisions, generally are exempt from that state’s personal income
tax. Most states, however, do not grant tax-free treatment to interest from
municipal securities of other states.
◾
A Fund may invest a
portion of its assets in securities that pay income that is not tax-exempt. To
the extent that dividends paid by a Fund are derived from taxable investments or
realized capital gains, they will be taxable as ordinary income or long-term
capital gains.
◾
A Fund may
distribute to you any market discount and net short-term capital gains from the
sale of its portfolio securities. If you are a taxable investor, Fund
distributions from this income are taxable to you as ordinary income, and
generally will neither qualify for the dividends-received deduction in the case
of corporate shareholders nor as qualified dividend income subject to reduced
rates of taxation in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable
portion of your social security or railroad retirement benefits, may be subject
to state and local income taxes, may affect the deductibility of interest on
certain indebtedness, and may have other collateral federal income tax
consequences for you.
◾
There are risks
that: (a) a security issued as tax-exempt may be reclassified by the IRS or a
state tax authority as taxable and/or (b) future legislative, administrative or
court actions could adversely impact the qualification of income from a
tax-exempt security as tax-free. Such reclassifications or actions could cause
interest from a security to become taxable, possibly retroactively, subjecting
you to increased tax liability. In addition, such reclassifications or actions
could cause the value of a security, and therefore, the value of the Fund’s
shares, to decline.
Money
Market Funds
◾
A Fund does not
anticipate realizing any long-term capital gains.
◾
If a Fund expects
to maintain a stable net asset value of $1.00 per share, investors should not
have any gain or loss on sale or exchange of Fund shares (unless the investor
incurs a liquidity fee on such sale or exchange). See “Liquidity
Fees.”
◾
There is some
degree of uncertainty with respect to the tax treatment of liquidity fees
received by a Fund, and such tax treatment may be the subject of future IRS
guidance. If a Fund receives liquidity fees, it will consider the appropriate
tax treatment of such fees to the Fund at such time.
◾
Unless you choose
to adopt a simplified “NAV method” of accounting (described below), any capital
gain or loss on the sale or exchange of Fund shares (as noted above) generally
will be treated either as short-term if you held your Fund shares for one year
or less, or long-term if you held your Fund shares longer. If you elect to adopt
the NAV method of accounting, rather than computing gain or loss on every
taxable disposition of Fund shares as described above, you would determine your
gain or loss based on the change in the aggregate value of your Fund shares
during a computation period (such as your taxable year), reduced by your net
investment (purchases minus sales) in those shares during that period. Under the
NAV method, any resulting net capital gain or loss would be treated as
short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because of
“noncash” expenses such as property depreciation, the cash flow of a REIT that
owns properties will exceed its taxable income. The REIT, and in turn a Fund,
may distribute this excess cash to shareholders. Such a distribution is
classified as a return of capital. Return of capital distributions generally are
not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
◾
Dividends paid to
shareholders from the Funds’ investments in U.S. REITs generally will not
qualify for taxation at long-term capital gain rates applicable to qualified
dividend income.
◾
The Fund may derive
“excess inclusion income” from certain equity interests in mortgage pooling
vehicles either directly or through an investment in a U.S. REIT. Please see the
SAI for a discussion of the risks and special tax consequences to shareholders
in the event the Fund realizes excess inclusion income in excess of certain
threshold amounts.
◾
Under the Tax Cuts
and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other
than capital gain dividends and portions of REIT dividends designated as
qualified dividend income) are treated as eligible for a 20% deduction by
noncorporate taxpayers. The Fund may choose to
A-23 The
Invesco Funds
report the special
character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their
shares.
◾
The Fund’s foreign
shareholders should see the SAI for a discussion of the risks and special tax
consequences to them from a sale of a U.S. real property interest by a REIT in
which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and
interest associated with an audit of a partnership are generally required to be
assessed and collected at the partnership level. Therefore, an adverse federal
income tax audit of a partnership that a Fund invests in (including MLPs taxed
as partnerships) could result in the Fund being required to pay federal income
tax. A Fund may have little input in any audit asserted against a partnership
and may be contractually or legally obligated to make payments in regard to
deficiencies asserted without the ability to put forward an independent defense.
Accordingly, even if a partnership in which the Fund invests were to remain
classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit
adjustment, and the Fund, as a direct or indirect partner of such partnership,
could be required to bear the economic burden of those taxes, interest and
penalties, which would reduce the value of Fund shares.
◾
Under the Tax Cuts
and Jobs Act “qualified publicly traded partnership income” is treated as
eligible for a 20% deduction by noncorporate taxpayers. The legislation does not
contain a provision permitting a RIC, such as a Fund, to pass the special
character of this income through to its shareholders. It is uncertain whether a
future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified
publicly traded partnership income” to its shareholders.
◾
Some amounts
received by a Fund from the MLPs in which it invests likely will be treated as
returns of capital to such Fund because of accelerated deductions available to
the MLPs. The receipt of returns of capital from the MLPs in which a Fund
invests could cause some or all of the Fund’s distributions to be classified as
a return of capital. Return of capital distributions generally are not taxable
to you. Your cost basis in your Fund shares will be decreased by the amount of
any return of capital. Any return of capital distributions in excess of your
cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The Funds’
strategies of investing through their respective Subsidiary in derivatives and
other financially linked instruments whose performance is expected to correspond
to the commodity markets may cause the Funds to recognize more ordinary income
and short-term capital gains taxable as ordinary income than would be the case
if the Funds invested directly in commodities.
◾
The Funds must meet
certain requirements under the Code for favorable tax treatment as a RIC,
including asset diversification and income requirements. The IRS has issued a
revenue ruling which holds that income derived from commodity-linked swaps is
not qualifying income for purposes of the Income Requirement. In a subsequent
revenue ruling, as well as in a number of follow-on private letter rulings (upon
which only the fund that received the private letter ruling may rely), the IRS
provides that income from certain alternative investments which create commodity
exposure, such as certain commodity-linked or structured notes or a corporate
subsidiary that invests in commodities, may be considered qualifying income
under the Code. However, the portion of such rulings relating to the treatment
of a corporation as a regulated investment company that require a determination
of whether a financial instrument or position is a security under section
2(a)(36) of the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security under section
2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as
a regulated investment company.) The Funds intend to treat the income each
derives from commodity-linked notes as qualifying income based on an opinion
from counsel confirming that income from such investments should be qualifying
income because such commodity-linked notes constitute
securities under
section 2(a)(36) of the 1940 Act. Each Subsidiary will be classified for federal
income tax purposes as a controlled foreign corporation (CFC) with respect to
the Fund. As such, the Fund will be required to include in its gross income each
year amounts earned by the Subsidiary during that year (“Subpart F” income),
whether or not such earnings are distributed by the Subsidiary to the Fund
(deemed inclusions). Treasury Regulations also permit the Fund to treat such
deemed inclusions of “Subpart F” income from the Subsidiary as qualifying income
to the Fund, even if the Subsidiary does not make a distribution of such income.
Consequently, the Fund and the Subsidiary reserve the right to rely on deemed
inclusions being treated as qualifying income to the Fund consistent with
Treasury Regulations. If, contrary to the opinion of counsel or other guidance
issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy the
income requirement. In lieu of disqualification, the Funds are permitted to pay
a tax for certain failures to satisfy the asset diversification or income
requirements, which, in general, are limited to those due to reasonable cause
and not willful neglect. The Funds intend to limit their investments in their
respective Subsidiary to no more than 25% of the value of each Fund’s total
assets in order to satisfy the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The Funds may
realize gains from the sale or other disposition of foreign currencies
(including but not limited to gains from options, futures or forward contracts)
derived from investing in securities or foreign currencies. The U.S. Treasury
Department is authorized to issue regulations on whether the realization of such
foreign currency gains is qualified income for the Funds. If such regulations
are issued, each Fund may not qualify as a RIC and/or the Fund may change its
investment policy. As of the date of this prospectus, no regulations have been
issued pursuant to this authorization. It is possible, however, that such
regulations may be issued in the future. Additionally, the IRS has not issued
any guidance on how to apply the asset diversification test to such foreign
currency positions. Thus, the IRS’ determination as to how to treat such foreign
currency positions for purposes of satisfying the asset diversification test
might differ from that of each Fund resulting in the Fund’s failure to qualify
as a RIC. In lieu of disqualification, each Fund is permitted to pay a tax for
certain failures to satisfy the asset diversification or income requirements,
which, in general, are limited to those due to reasonable cause and not willful
neglect.
◾
The Funds’
transactions in foreign currencies may give rise to ordinary income or loss to
the extent such income or loss results from fluctuations in the value of the
foreign currency concerned. This treatment could increase or decrease the Funds'
ordinary income distributions to you, and may cause some or all of the Funds'
previously distributed income to be classified as a return of capital. Return of
capital distributions generally are not taxable to you. Your cost basis in your
Fund shares will be decreased by the amount of any return of capital. Any return
of capital distributions in excess of your cost basis will be treated as capital
gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the
federal, state, local and foreign tax provisions applicable to
them.
Taxes
(applicable to the Invesco SteelPath Funds only)
Although the Code
generally provides that a RIC does not pay an entity-level income tax, provided
that it distributes all or substantially all of its income, the Fund is not and
does not anticipate becoming eligible to elect to be treated as a RIC because
most or substantially all of the Fund’s investments will consist of investments
in MLP securities. The RIC tax rules therefore have no application to the Fund
or to its shareholders. As a result, the Fund is treated as a regular
corporation, or “C” corporation, for U.S. federal income tax purposes, and
generally is subject to U.S. federal income tax on its taxable income at the
corporate income tax rate. In addition, as a regular corporation, the Fund will
be subject to state and local taxes by reason of its
A-24 The
Invesco Funds
tax status and its
investments in MLPs. Therefore, the Fund may have to pay federal, multiple
state, and local taxes, which would reduce the Fund’s cash available to make
distributions to shareholders. An estimate for federal, state, and local tax
liabilities will reduce the fund’s net asset value. The extent to which the Fund
is required to pay U.S. federal, state or local corporate income, franchise or
other corporate taxes could materially reduce the Fund’s cash available to make
distributions to shareholders. In addition, investors in taxable accounts should
be aware of the following basic tax points as supplemented below where
relevant:
Fund
Tax Basics
◾
The Fund intends to
invest a significant portion of its assets in MLPs, which are generally treated
as partnerships for U.S. federal income tax purposes. To the extent that the
Fund invests in equity securities of an MLP, the Fund will be a partner in such
MLP. Accordingly, the Fund will be required to take into account the Fund’s
allocable share of the income, gains, losses, deductions, and credits recognized
by each such MLP, regardless of whether the MLP distributes cash to the Fund.
MLP distributions to partners, such as the Fund, are not taxable unless the cash
amount (or in certain cases, the fair market value of marketable securities)
distributed exceeds the Fund’s basis in its MLP interest. The Fund expects that
the cash distributions it will receive with respect to its investments in equity
securities of MLPs will exceed the net taxable income allocated to the Fund from
such MLPs because of tax deductions such as depreciation, amortization and
depletion that will be allocated to the Fund from the MLPs. No assurance,
however, can be given in this regard. If this expectation is not realized, the
Fund will have a larger corporate income tax expense than expected, which will
result in less cash available for distribution to shareholders.
◾
The Fund will
recognize gain or loss on the sale, exchange or other taxable disposition of its
portfolio assets, including equity securities of MLPs, equal to the difference
between the amount realized by the Fund on the sale, exchange or other taxable
disposition and the Fund’s adjusted tax basis in such assets. Any such gain will
be subject to U.S. federal income tax at the corporate income tax rate,
regardless of how long the Fund has held such assets since preferential capital
gain rates do not apply to regular corporations such as the Fund. The amount
realized by the Fund in any case generally will be the amount paid by the
purchaser of the assets plus, in the case of MLP equity securities, the Fund’s
allocable share, if any, of the MLP’s debt that will be allocated to the
purchaser as a result of the sale, exchange or other taxable disposition. The
Fund’s tax basis in its equity securities in an MLP generally is equal to the
amount the Fund paid for the equity securities, (i) increased by the Fund’s
allocable share of the MLP’s net taxable income and certain MLP debt, if any,
and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any
distributions received by the Fund from the MLP. Although any distribution by an
MLP to the Fund in excess of the Fund’s allocable share of such MLP’s net
taxable income may create a temporary economic benefit to the Fund, net of a
deferred tax liability, such distribution will decrease the Fund’s tax basis in
its MLP investment and will therefore increase the amount of gain (or decrease
the amount of loss) that will be recognized on the sale of an equity security in
the MLP by the Fund. To the extent that the Fund has a net capital loss in any
year, the net capital loss can be carried back three taxable years and forward
five taxable years to reduce the Fund’s capital gains in such years. In the
event a capital loss carryover cannot be utilized in the carryover periods, the
Fund’s federal income tax liability may be higher than expected, which will
result in less cash available to distribute to shareholders.
◾
Distributions by
the Fund of cash or property in respect of the shares (other than certain
distributions in redemption of shares) will be treated as dividends for U.S.
federal income tax purposes to the extent paid from the Fund’s current or
accumulated earnings and profits (as determined under U.S. federal income tax
principles). Generally, the Fund’s earnings and profits are computed based upon
the Fund’s taxable income (loss), with certain specified adjustments. Any such
dividend likely will be eligible for the dividends-received deduction if
received by an otherwise qualifying corporate U.S. shareholder that meets
certain holding period and other
requirements for
the dividends-received deduction. Dividends paid by the Fund to certain
non-corporate U.S. shareholders (including individuals), generally are eligible
for U.S. federal income taxation at the rates generally applicable to long-term
capital gains for individuals provided that the U.S. shareholder receiving the
dividend satisfies applicable holding period and other requirements. Otherwise,
dividends paid by the Fund to non-corporate U.S. Shareholders (including
individuals) will be taxable at ordinary income rates.
◾
If the amount of a
Fund distribution exceeds the Fund’s current and accumulated earnings and
profits, such excess will be treated first as a tax-deferred return of capital
to the extent of, and in reduction of, a shareholder’s tax basis in the shares,
and thereafter as capital gain to the extent the shareholder held the shares as
a capital asset. Any such capital gain will be long-term capital gain if such
shareholder has held the applicable shares for more than one year. The portion
of the distribution received by a shareholder from the Fund that is treated as a
return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of
gain (or decrease in the amount of loss) that will be recognized by the
shareholder for tax purposes on the later sale of such Fund shares.
◾
The Fund
anticipates that the cash distributions it will receive with respect to its
investments in equity securities of MLPs and which it will distribute to its
shareholders will exceed the Fund’s current and accumulated earnings and
profits. Accordingly, the Fund expects that only a part of its distributions to
shareholders with respect to the shares will be treated as dividends for U.S.
federal income tax purposes. No assurance, however, can be given in this
regard.
◾
Special rules may
apply to the calculation of the Fund’s earnings and profits. For example, the
Fund’s earnings and profits will be calculated using the straight-line
depreciation method rather than the accelerated depreciation method. This
difference in treatment may, for example, result in the Fund’s earnings and
profits being higher than the Fund’s taxable income or loss in a particular year
if the MLPs in which the Fund invests calculate their income using accelerated
depreciation. Because of these special earnings profits rules, the Fund may make
distributions in a particular year out of earnings and profits (treated as
dividends) in excess of the amount of the Fund’s taxable income or loss for such
year, which means that a larger percentage of the Fund ’s distributions could be
taxable to shareholders as ordinary income instead of tax-deferred return of
capital or capital gain.
◾
Shareholders that
receive distributions in shares rather than in cash will be treated for U.S.
federal income tax purposes as having (i) received a cash distribution equal to
the fair market value of the shares received and (ii) reinvested such amount in
shares.
◾
A redemption of
shares will be treated as a sale or exchange of such shares, provided the
redemption is not essentially equivalent to a dividend, is a substantially
disproportionate redemption, is a complete redemption of a shareholder’s entire
interest in the Fund, or is in partial liquidation of such Fund. Redemptions
that do not qualify for sale or exchange treatment will be treated as
distributions as described above. Upon a redemption treated as a sale or
exchange under these rules, a shareholder generally will recognize capital gain
or loss equal to the difference between the adjusted tax basis of his or her
shares and the amount received when they are sold.
◾
If the Fund is
required to sell portfolio securities to meet redemption requests, the Fund may
recognize income and gains for U.S. federal, state and local income and other
tax purposes, which may result in the imposition of corporate income or other
taxes on the Fund and may increase the Fund’s current and accumulated earnings
and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital
gains realized on sale or redemption of your Fund shares will be subject to
federal income tax. For tax purposes an exchange of your shares for shares of
another Fund is the same as a sale. An exchange occurs when the purchase of
shares of a Fund is made using the proceeds from a redemption of shares of
another Fund and is effectuated on the same day as the redemption. Your gain or
loss is calculated by subtracting from the
A-25 The
Invesco Funds
gross proceeds your
cost basis. Gross proceeds and, for shares acquired on or after January 1, 2012
and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in,
first-out (FIFO), unless you instruct the Fund to use a different calculation
method. Shareholders should carefully review the cost basis information provided
by a Fund and make any additional basis, holding period or other adjustments
that are required when reporting these amounts on their federal income tax
returns. If you hold your Fund shares through a broker (or other nominee),
please contact that broker (nominee) with respect to reporting of cost basis and
available elections for your account. For more information about the cost basis
methods offered by Invesco, please refer to the Tax Center located under the
Account Access & Forms menu of our website at
www.invesco.com/us.
◾
The conversion of
shares of one class of a Fund into shares of another class of the same Fund is
not taxable for federal income tax purposes and no gain or loss will be reported
on the transaction. This is true whether the conversion occurs automatically
pursuant to the terms of the class or is initiated by the
shareholder.
◾
At the time you
purchase your Fund shares, the Fund’s net asset value may reflect undistributed
income. A subsequent distribution to you of such amounts, although constituting
a return of your investment, would be taxable. Buying shares in a Fund just
before it declares an income dividend is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized
appreciation, which may result in future taxable distributions to
you.
◾
By law, if you do
not provide a Fund with your proper taxpayer identification number and certain
required certifications, you may be subject to backup withholding on any
distributions of income, capital gains, or proceeds from the sale of your
shares. A Fund also must withhold if the IRS instructs it to do so. When
withholding is required, the amount will be 24% of any distributions or proceeds
paid.
◾
A 3.8% Medicare tax
is imposed on certain net investment income (including ordinary dividends
received from a Fund and net gains from redemptions or other taxable
dispositions of Fund shares) of U.S. individuals, estates and trusts to the
extent that such person’s “modified adjusted gross income” (in the case of an
individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
Fund distributions
and gains from sale or exchange of your Fund shares generally are subject to
state and local income taxes.
◾
Foreign investors
should be aware that U.S. withholding, special certification requirements to
avoid U.S. backup withholding and claim any treaty benefits, and estate taxes
may apply to an investment in a Fund.
◾
Under the Foreign
Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30%
tax on income dividends made by the Fund to certain foreign entities, referred
to as foreign financial institutions or non-financial foreign entities, that
fail to comply (or be deemed compliant) with extensive reporting and withholding
requirements designed to inform the U.S. Department of the Treasury of
U.S.-owned foreign investment accounts. After December 31, 2018, FATCA
withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund
shares; however, based on proposed regulations issued by the IRS, which can be
relied upon currently, such withholding is no longer required unless final
regulations provide otherwise (which is not expected). A Fund may disclose the
information that it receives from its shareholders to the IRS, non-U.S. taxing
authorities or other parties as necessary to comply with FATCA or similar laws.
Withholding also may be required if a foreign entity that is a shareholder of a
Fund fails to provide the Fund with appropriate certifications or other
documentation concerning its status under FATCA.
◾
Taxes, penalties,
and interest associated with an audit of a partnership are generally required to
be assessed and collected at the partnership level. Therefore, an adverse
federal income tax audit of an MLP taxed as a partnership that the Fund invests
in could result in the Fund being required to pay federal income tax. The Fund
may have little input in any
audit asserted
against an MLP and may be contractually or legally obligated to make payments in
regard to deficiencies asserted without the ability to put forward an
independent defense. Accordingly, even if an MLP in which the Fund invests were
to remain classified as a partnership, it could be required to pay additional
taxes, interest and penalties as a result of an audit adjustment, and the Fund,
as a direct or indirect partner of such MLP, could be required to bear the
economic burden of those taxes, interest and penalties, which would reduce the
value of Fund shares.
◾
Under the Tax Cuts
and Jobs Act certain “qualified publicly traded partnership income” (e.g.,
certain income from certain of the MLPs in which the Fund invests) is treated as
eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs
Act does not contain a provision permitting an entity, such as the Fund, to
benefit from this deduction (since the Fund is taxed as a “C” corporation) or
pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor
investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions and
of redemptions and exchanges of Fund shares is inapplicable to investors holding
shares through a tax-advantaged arrangement, such as Retirement and Benefit
Plans or 529 college savings plans. Such investors should refer to the
applicable account documents/program description for that arrangement for more
information regarding the tax consequences of holding and redeeming Fund
shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the
federal, state, local and foreign tax provisions applicable to
them.
Payments
to Financial Intermediaries – All Share Classes except Class R6
shares
The financial
adviser or intermediary through which you purchase your shares may receive all
or a portion of the sales charges and distribution fees discussed above. In
addition to those payments, Invesco Distributors and other Invesco Affiliates,
may make additional cash payments to financial intermediaries in connection with
the promotion and sale of shares of the Funds. These additional cash payments
may include cash payments and other payments for certain marketing and support
services. Invesco Affiliates make these payments from their own resources, from
Invesco Distributors’ retention of initial sales charges and from payments to
Invesco Distributors made by the Funds under their 12b-1 plans. In the context
of this prospectus, “financial intermediaries” include any broker, dealer, bank
(including bank trust departments), registered investment adviser, financial
planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement
with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include, among
other things, placing the Funds on the financial intermediary’s fund sales
system, and access (in some cases on a preferential basis over other
competitors) to individual members of the financial intermediary’s sales force
or to the financial intermediary’s management. These payments are sometimes
referred to as “shelf space” payments because the payments compensate the
financial intermediary for including the Funds in its fund sales system (on its
“sales shelf”). Invesco Affiliates compensate financial intermediaries
differently depending typically on the level and/or type of considerations
provided by the financial intermediary. The payments Invesco Affiliates make may
be calculated based on sales of shares of the Funds (Sales-Based Payments), in
which case the total amount of such payments shall not exceed 0.25% (0.10% for
Class R5 shares) of the public offering price of all shares sold by the
financial intermediary during the particular period. Payments may also be
calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments),
in which case the total amount of such cash payments shall not exceed 0.25% per
annum of those assets during a defined period. Sales-Based Payments primarily
create incentives to make new sales of shares of the
A-26 The
Invesco Funds
Funds and
Asset-Based Payments primarily create incentives to retain previously sold
shares of the Funds in investor accounts. Invesco Affiliates may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based
Payments.
Invesco
Affiliates are motivated to make these payments as they promote the sale of
Fund shares and the retention of those investments by clients of the financial
intermediaries. To the extent financial intermediaries sell more shares of the
Funds or retain shares of the Funds in their clients’ accounts, Invesco
Affiliates benefit from the incremental management and other fees paid to
Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries for
certain administrative services, including record keeping and sub-accounting of
shareholder accounts pursuant to a sub-transfer agency, omnibus account service
or sub-accounting agreement. All fees payable by Invesco Affiliates under this
category of services are charged back to the Funds, subject to certain
limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the services
provided by financial intermediaries. In certain cases these payments could be
significant to the financial intermediaries. Your financial adviser may charge
you additional fees or commissions other than those disclosed in this
prospectus. You can ask your financial adviser about any payments it receives
from Invesco Affiliates or the Funds, as well as about fees and/or commissions
it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To reduce Fund
expenses, only one copy of most shareholder documents may be mailed to
shareholders with multiple accounts at the same address (Householding). Mailing
of your shareholder documents may be householded indefinitely unless you
instruct us otherwise. If you do not want the mailing of these documents to be
combined with those for other members of your household, please contact the
Funds’ transfer agent at 800-959-4246 or contact your financial institution. The
Funds’ transfer agent will begin sending you individual copies for each account
within thirty days after receiving your request.
Inactive
or Unclaimed Accounts
Please note that if
your account is deemed to be unclaimed or abandoned under applicable state law,
the Fund may be required to transfer (or “escheat”) the assets in that account
to the appropriate state. Some states may sell escheated shares, in which case a
shareholder may only be able to recover the amount received when the shares were
sold. For shareholders that invest through retirement accounts, the escheatment
will be treated as a taxable distribution and federal and any applicable state
income tax may be withheld. The Fund, its Board, and the Fund's transfer agent
will not be liable to shareholders for good faith compliance with state
unclaimed or abandoned property laws. To avoid these outcomes and protect their
property, shareholders that invest in the Fund through an account held directly
with the Fund's transfer agent are encouraged to routinely confirm that the
mailing address on their account is current and valid and contact the transfer
agent at least once a year by one of the following methods:
• Accessing your
account online at invesco.com/us.
• Accessing your
account balance through the automated Invesco Investor Line at 800 246
5463.
• Contacting us by
phone or in writing for any matter related to your account.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which
is on file with the SEC, contains more details about the Fund and is
incorporated by reference into this prospectus (is legally a part of this
prospectus). Annual and semi-annual reports to shareholders contain additional
information about the Fund’s investments. The Fund’s annual report also
discusses the market conditions and investment strategies that significantly
affected the Fund’s performance during its last fiscal year. The Fund also files
its complete schedule of portfolio holdings with the SEC for the 1st and 3rd
quarters of each fiscal year as an exhibit to its reports on Form
N-PORT.
If you have
questions about an Invesco Fund or your account, or you wish to obtain a free
copy of the Fund’s current SAI, annual or semi-annual reports or Form N-PORT,
please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us |
Reports and other
information about the Fund are available on the EDGAR Database on the SEC's
Internet site at http://www.sec.gov, and copies of this information may be
obtained, after paying a duplicating fee, by electronic request at the following
e-mail address: [email protected].
|
Invesco
Growth and Income Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us |
VK-GRI-PRO-1 |